As a business owner, you do not want to miss out on all the reimbursement you could potentially receive through proper mileage tracking. Nowadays, the best way to do this is by using a mileage tracking app as it is the most precise and least time-consuming method of mileage tracking and logging. You may be used to logging your miles physically or by using an Excel sheet, but we encourage you to consider an app for your future reports.
As a small business owner it is likely that you will have to reimburse your employees for any work related driving they may do with their personal cars. To do this, you must follow the IRS reimbursement rules. This means that if you are using the standard allowance method, then you must reimburse your employees with the standard allowance decided by the IRS.
The standard allowance for 2021 is $0.56 but it may soon change for the 2022 year. Keep a close eye on the new reimbursement rates on the official IRS website and make sure you are using the correct rates. To determine next year's rate, the IRS looks at the average costs of owning (fixed costs) and operating (variable costs) a vehicle this year. Find out more about the current mileage rates in our IRS mileage guide.
To begin, you can try a free mileage tracking app for your business before committing to a paid solution. There are lots of different options out there which we encourage you to explore. One option is the Driversnote app which offers automatic tracking and compliant IRS reports.
Mileage tracking apps are particularly useful for a small business since they allow you to get the highest possible reimbursement. As a business owner, you may have a lot to do with a limited budget and time. Some mileage tracking apps, such as Driversnote, offer free options which allow you to try out the app before committing to a subscription.
The logistics of tracking and logging mileage of your employees can be a nightmare without an accounting team. If you don’t have an accounting team, a good mileage tracking app can save so much of your time, make mileage tracking easier for your employees and ease up the process of mileage reimbursement. Here are some of the perks of using a mileage tracking app as a small business:
Even the most organized person will find manually documenting time, travel, distance, the purpose of the trip, and receipts into a central spot tedious. Mileage tracking software can take care of everything for you, save crucial data, and make reimbursements and deductions a breeze.
If you have any questions about using a mileage tracking app as a small business don’t hesitate to reach out to us at firstname.lastname@example.org. For information on mileage tracking and logging for the self-employed, check out our guide.