Tracking Your Time on the Road
When we do an initial consult with new clients at Open Road Accounting and Payroll Solutions, we take the time to review each company and its specific situation. One of the questions we ask owners is “do you use a vehicle for your work?” If the answer is yes, our next question is always “do you keep a mileage log?” Often the response sounds similar to “Well…sort of…I mean I record the mileage when I get gas…does that count?”
If you use a vehicle for work, a mileage log is an absolute necessity. Why? Because vehicle expenses are often part of audits. CRA looks to see if vehicle expenses are being recorded, and if they are being charged to the company, then the auditor will request the mileage logs. No mileage logs? No expenses! Be prepared for the assessed penalties and interest once all of those vehicle related expenses have been disallowed.
So, what constitutes a good mileage log? We recommend downloading an app and turning it on each workday when you get in the car. Mileage Tracking apps track your location and stops on a map while you go about your day and they allow you to add details regarding the purpose of each stop. At the end of the month, download the summary spreadsheet and send it to your bookkeeper, or even better, invite them to your app so they can grab the details themselves! Some versions of these apps (in no particular order) include: MileIQ, Triplog, and Hurdlr.
If smart phones aren’t your thing, a simple mileage log book can be purchased from almost any stationary supply store, or even created in excel. Your log should, at a minimum, contain each of the following:
Vehicle information
Period the report covers
Date of trip
Starting odometer reading and location
Ending odometer reading and location
Purpose of the trip
For more information on documenting the use of a vehicle check out the following link: