Is a Mileage Tracker App Worth the Investment?

Whether you’re running your own small business or working as a freelancer, there’s a good chance that driving is part of your job. If you have a lot of trips, then a mileage tracker app can keep your business on the right track.

A mileage tracking app can be a huge time-saver for you and your employees. It can also make it easier for you to deduct your miles on taxes.

Accuracy

Keeping track of miles can be tedious and time-consuming, especially if you have multiple vehicles or work with clients. Thankfully, a mileage tracker app can help you minimize the hassle and get accurate data on your driving habits.

Using GPS, these apps automatically track trips and save them to your device or account at the end of each day or month. They also provide tax-friendly reports for reimbursement and accounting purposes.

Most mileage-tracking apps use intelligent software that recognizes frequent routes and locations and flags them as business trips. They also let you set work hours, which can be helpful for owners or employees working different shifts weekly.

Some apps also allow users to edit trips and designate parts as personal before submitting them for reimbursement. This way, employers can see the total mileage for each trip and ensure that it is being claimed correctly.

Accuracy is a crucial aspect of any mileage-tracking app, so choosing the right one is essential. Some of the most reputable GPS apps.

Both apps are easy to use and categorize work-related trips with a simple swipe on your phone. They also offer team reporting and analytics.

Rideshare drivers primarily use them, but they are worth checking out for other types of businesses. Whether you’re an Uber or Lyft driver, a small business owner, or a solopreneur, these mileage trackers will save you time and money by reducing the hassle of mileage tracking.

Time Saving

Choosing the best mileage tracker app for your business will save you time, including tax deductions and reimbursements. Traditionally, companies that need to deduct mileage from their employees have had to spend a lot of time sifting through gas receipts and logbooks, credit card statements, and toll booth slips to ensure they comply with IRS regulations.

Mileage tracking apps can also help you save time when filing taxes by automatically generating tax-compliant reports on your behalf. This can be a big time saver when you’re working with an accountant and don’t want to waste their time trying to sort through piles of paper.

Another feature that can save you time is connecting your mileage tracking app with other apps. This can be especially useful for a business that offers a variety of services or if you use other apps to manage your finances.

A mileage tracker can also track fuel costs and other car expenses. Some apps also offer real-time pricing information for gas stations, so you can make a more informed decision when you fill up.

A wide variety of mileage-tracking apps are available on the market, so choosing one that suits your needs is essential. If you’re looking for a comprehensive app to track your mileage and other expenses. It has a free and premium version, including features that can streamline your mileage tracking and expense management.

Tax Deductions

A mileage tracker app can help independent contractors, small business owners, and freelancers maximize their tax deductions. These apps automatically track miles and expenses to produce IRS-compliant reports that ease the tax-filing process.

Mileage trackers also provide expert support to ensure that business-related trips are correctly recorded and categorized for tax purposes. This helps to prevent errors and avoid an IRS audit.

Most independent contractors and small business owners can use the standard mileage rate or the actual expense method of calculating their mileage tax deductions. The actual expense method is more popular. It provides more savings for most taxpayers because it includes all the costs associated with owning and operating a vehicle — like gas, oil, maintenance, and depreciation.

However, if you use a mixed-use vehicle for personal and business activities, it can be challenging to determine what portion of your driving is business-related. Keeping clear and detailed records of time, route, and reason helps you distinguish between the two and is a great way to maximize your tax deductions.

Most independent contractors and small business owners use a mileage tracker app to keep track of their travel and business-related miles. This ensures you can claim all your miles for tax deductions and reimbursements. It can also increase your productivity by helping you reduce the time spent logging miles manually.

Expense Tracking

Expense tracking is an essential step in financial planning, and it can help you avoid a cash flow crisis. It can also prevent you from spending money on unnecessary expenses, dipping into your savings, or closing down your business.

For example, if you work in the service industry and your clients regularly take their vehicles for business trips, you can recommend an app that tracks mileage automatically. This app will collect accurate miles logs and save them in a safe place online. It’s a great way to keep track of all your clients’ trips and vehicle expenses, so you don’t have to worry about losing or misplacing them.

It’s also an easy way to keep up with upcoming tax deadlines. All you need to do is connect the app to your accounting software and upload the categorized income and expenses.

Another great feature of an expense-tracking app is the ability to create and manage invoices. Some apps integrate with popular accounting systems such as QuickBooks, Xero, and NetSuite. This saves you time and hassle in making a tax expenditure report.

A good expense-tracking app will have several features, including automatic mileage detection, receipt uploads, and IRS-compliant reports. Some even allow you to set up automatic saving withdrawals so a percentage of your income is put away for taxes every month.