Best Mileage Tracking Apps for Your Business Drives
As an entrepreneur, finding ways to save money is critical to ensure the success of your business. There are many ways to do so, but one that tends to be overlooked is mileage reimbursement.
For those who started their business recently and still don’t know how to proceed with tax deductions, know that you can claim the miles you drove for business purposes. If your work-related commutes are long, you can earn a hefty deduction at the end of the year. The IRS releases annually the rate that each business mile driven is worth. In 2020, that figure is 57.5 cents per mile.
What's Considered Business Mileage?
In order to claim a tax deduction for costs associated with driving a personal vehicle for business purposes, your starting point must be your home, office, or a job location. It is important to note that only self-employed persons can deduct business mileage.
The destination must also be home, office or job location, but the IRS doesn't allow to side trips between two points. Your commutes have to be relatively straightforward to your work-related assignment.
Additionally, you can also include certain mile drives for other business-related reasons such as cashing a check at the bank or meeting with professionals regarding your business.
How to Log your Business Miles
As a self-employed person, if you want to prove the mileage you deduct, it’s recommended that you keep all the data related to your trips. This means that you should write down the starting point, stops you had on the way, and final destination. You should also add the date and time of the journey, and the purpose of the trip.
All of this could take a long time and a lot of organization. Fortunately, several phone apps allow you to automatically calculate and save your trips so that you can later prove your deduction on your taxes.
Apps to Track and Calculate your Business Miles
These are some of the applications you can use to save data related to your miles traveled for your business, to help you prove the mileage claimed. Some of the apps are free, while others have a monthly fee (which you may also claim as a business expense).
This is one of the best apps for calculating your miles. The app works in the background, automatically calculating the distances you have driven per job and saving all the information. All you have to do is note if the distance traveled is for personal or business reasons. You can also export detailed reports with the distance driven each month.
Everlance (Android & iOS)
Like MileIQ, Everlance also automatically calculates and saves distances traveled by job. But Everlance does much more than that. This application also allows you to keep data related to your income and expenses, and saves receipts so you’re ready to do your taxes. You can export everything to a CSV file.
Despite the fact that this application has a monthly fee, you can save 30 trips for free. As indicated on their website, you could save thousands of dollars in deductions each year.
Hurdlr (Android & iOS)
With Hurdlr you also may calculate miles traveled, to help prove your deduction from your taxes. The difference with this app is that it’s free. Hurdlr’s basic functions include an automatic mileage calculator, adding income and expenses, and calculations for tax declaration.
Basically, this app covers all the basic accounting needs for your business.
Fuel Buddy (Android & iOS)
This app provides a complete record of gas consumption for the miles you drive each month. Thanks to voice recognition, it’s easy to log your data while you’re on the road without worrying about being distracted.
RoadTrip Lite (iOS)
Like other apps, RoadTrip Lite also allows you to log miles while your car is running, record fuel use, and track the costs associated with maintaining your vehicle.
If you’re planning to go to another country, you can use this app because it offers international support, including converting data to the format of the country you’re visiting (miles or kilometers, for example).
The last on our list of apps for calculating gas mileage is specifically for the Android OS. The app aCar can analyze your driving to know when you need to stop for gas, and also when you need to take your car to the mechanic for a checkup. This app can also help you calculate the cost of each day’s miles. Although the app’s configuration is a bit complicated, the savings you’ll realize later are worth the effort.
Claiming the miles traveled for your business is a good way to help you save money, but so is obtaining the ideal insurance for your business. Whether you need Commercial Auto Insurance, Commercial General Liability Insurance, or Business Owner Policy, Infinity can help you save more while giving you the peace of mind you need to successfully run your business. Call one of our friendly agents today at 1-800-INFINITY for a free quote or visit our website.
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