Businesses that require vehicles for their operation, even smaller businesses, often use mileage apps to keep track of their vehicles, improve productivity, and save money at tax time. Here we offer a run-down of the benefits of using mileage tracking applications in your small business.
Technology improves our daily lives by solving problems, and it has now expanded to almost every sector around the globe. Whether it’s in our personal lives or in healthcare, business, or any other service, technology is everywhere.
The business world in particular benefits from technological advancements. Business owners can now easily track and monitor their business progress, using technologies that are right at their fingertips. For example, companies can use a variety of digital tools to track salary reimbursements and complete other tasks.
What’s more, if you are running a business that involves vehicles, there is a good chance you might already be using a mileage tracker application.
Mileage Apps Are Important for Small Businesses
Business mileage is an essential expense for many small companies. In fact, regardless of the size of your business, you and your employees should be tracking every mile of business travel. Otherwise, you’re leaving money on the table. Whether you own a small business or you’re a traveling salesperson, your business miles are tax-deductible. Even if you are using Uber or Lyft or another ride-sharing service for your business, you can deduct your business mileage.
Moreover, tracking tax-deductible business mileage is a painless process. Plus, you have your choice between two different ways of doing tracking these expenses. You can either calculate your business mileage using a flat rate provided by the IRS, or you can track all of your vehicles’ expenses separately, including fuel costs, repairs, and insurance.
Importantly, tracking your expenses in the latter way is crucial for having an accurate figure for tax deduction. This is where mileage apps can come in handy. Only with an app can you accurately track the actual costs for running your company vehicles. Also, if necessary, you can easily adjust the figures for more accuracy.
Here are some specific benefits of using mileage apps in your small business.
Mileage Apps Provide Accurate Tracking
Until a few years ago, businesses tracked business mileage on notepads and spreadsheets. This often required calculations that were tricky and tedious. Moreover, manual methods of mileage tracking encouraged employees to round up or round down figures, making for inaccurate mileage calculations. But using an app to track mileage will save time and trouble for you and your employees, and you’ll end up with accurate calculations.
Further, a good mileage application will record travel data automatically, and all of the information will be saved on the driver’s phone. Then you can track, view, and revise, anytime and anywhere. Moreover, most mileage apps also include the IRS standard mileage rates. This will allow you to calculate and record the proper deductible amount easily and meticulously. Your small business will benefit significantly from this level of accuracy.
You’ll Have More Peace of Mind
Having accuracy with your company’s mileage data will give you as the business owner peace of mind. Running a business is not a walk in the park, as you know. But a mileage app will relieve you of much of that burden, allowing you to better focus on your business. Since the apps’ automation will easily record your employees’ data for vehicle use during working hours, you will no longer have to calculate their travel hours or other travel expenses. Just think of all the time and effort you will save!
What’s more, if you’re one of those business owners who is in the habit of putting off calculating mileage and other travel expenses until tax season arrives, you’re going to love using mileage apps. Maybe you’ve even been guessing about mileage records, which is not only inefficient but just plain wrong.
Using an efficient application to track your employees’ mileage will make things easier for you. You won’t even have to think about tracking travel expenses once the app is set up, as a mileage app just runs in the background. You can retrieve all the records when tax season rolls around, then deduct an accurate, meticulously calculated business travel amount.
Productivity Will Improve
A mileage app will free you up from having to calculate yours or your employees’ travel mileage on a daily basis. That’s because the app does the job for you. It will automatically record all the necessary data. You won’t need to do any manually logging. According to research, manual logging can require as many as 72 hours per driver per year. That’s a lot of lost productivity for you and your employees. Just imagine what you as the business owner could do with all of that time, from marketing to working on your business strategies to furthering your long-term goals.
A good mileage app will make it easy to run the accounting reports you need. No longer must you struggle to enter data into spreadsheets, revising it later for more accuracy. You’ll also be able to import records for mileage and other travel expenses from other software platforms. You’ll be able to run reports whenever you need them and reimburse employees’ mileage expenses in a timelier fashion.
Best of all, you can enable settings to generate weekly, monthly, or yearly reports. In fact, these applications are highly customizable, and you can set the app in whatever way works best for your business’s needs.
Mileage Apps Will Allow You to Better Maintain Your Vehicles
If your business involves running a fleet of vehicles, it goes almost without saying that you need more than manual recordings for mileage. Mileage tracking apps will record and track data from all of the vehicles your employees use for your business. Lack of oversight and redundancy of maintenance, common problems with manual tracking, will become things of the past. Accordingly, you’ll save a lot of money on vehicle maintenance.
Moreover, some apps also allow you to track the fuel costs as well as mileage for your fleet. In short, you and your employees will be able to track practically all business travel expenses on your smartphones.
Mileage Apps Will Track Your Tax Deductions
Mileage apps commonly use IRS standard mileage rates, allowing your business to deduct from your tax returns accurately. While many small businesses fail to take advantage of using these mileage apps, it’s not difficult to do. All you need is a good mobile application, then you’ll be able to track business travel expenses automatically.
A simple plug-and-play mileage tracker app for your company’s vehicles will help your small business by tracking business travel expenses accurately and seamlessly. Let mileage apps save your business time and money, starting today.