As a CPA, I know, one of the most daunting tasks for business owners is tracking business mileage. In fact, business mileage is likely one of the most underutilized business deductions because tracking is so inconvenient. We get it! Who has the time to log mileage every time they hop into the car to head out for court, mediation, depositions, client meetings, etc.? Even if you take the time to log the mileage, what then? Who has the time to assimilate the information for tax reporting?
You’re in luck – technology is a beautiful thing! I recently learned of really useful mileage tracking app, MileIQ that tracks mileage via your smartphone. I decided to give it a try and so far, I am loving it! Once you download the App to your smartphone, it runs behind the scenes, tracking each trip (the mileage and dollar value). There’s no need to turn the app on or off - automation in action. Each trip shows up in your phone’s notifications and within minutes, at your own leisure, you can swipe each trip- left for personal or right for business. You can also add notes to each trip, such as a client name or number. A complete report is then available in a desktop format/dashboard for you or a designee to capture those costs for client reimbursement or tax reporting purposes. You can also track the mileage to multiple vehicles.
What’s the cost? 40 trips per month is free, additional trip tracking beyond the first 40 each month requires a fee ($5.99/month or $59.99/year). In just a few short weeks, I’ve tracked (with an ongoing running report) enough business mileage to pay for the annual subscription.
At Advocate Capital, Inc., we are continuously focusing on best practices and strategic business solutions for Plaintiffs’ lawyers. Give it a try and let us know what you think!
Senior Vice President, Client Services
Photo Credit: MileIQ.com