Still talking about Mileage…….
We know we have talked about this before but we are coming back around to it because it is so important! Here are the reasons why…
Tax Deductions and Compliance
Accurate mileage logs are vital for claiming tax deductions. CRA requires detailed records to substantiate business mileage claims, helping businesses avoid penalties during audits.
Expense Tracking
Mileage logs help track vehicle-related expenses like fuel, maintenance, and depreciation. This aids in better budget management and cost-cutting.
Reimbursement Accuracy
For employees using personal vehicles for work, mileage logs ensure fair reimbursement, preventing disputes and ensuring correct compensation.
Fleet Management
For companies with multiple vehicles, mileage logs are essential for effective fleet management. They help schedule maintenance, monitor usage, and plan replacements, ensuring efficiency and reducing downtime.
Legal Protection
In case of an accident or legal dispute, mileage logs provide crucial evidence, helping resolve claims and protect the business from liability.
Operational Efficiency
Analyzing mileage data can optimize routes, reduce unnecessary travel, and improve productivity.
Tools and Apps for Tracking Mileage
There are plenty of tools and apps out there to use for tracking mileage and here are a few in no particular order that you :
Everlance: Automatic mileage tracking, expense tracking, and detailed reports for tax deductions.
QuickBooks Online: Comprehensive accounting software with mileage tracking.
Zoho Expense: GPS tracking, expense reporting, and integration with other tools.
TripLog: Automatic mileage tracking, expense tracking, and route planning.
Stride: Free, simple-to-use app for automatic mileage tracking.
Hurdlr: Real-time tracking of mileage, expenses, and income.
Conclusion
Maintaining mileage logs might seem tedious, but the benefits far outweigh the effort. From tax compliance to operational efficiency, accurate mileage records are essential for effective business management. Using tools and apps can streamline this process, ensuring you maximize tax deductions and reimbursements. Make it a habit to log those miles – your business will thank you!