In the current business landscape where freelance work has become increasingly popular, and where employees travel for work-related purposes quite often, keeping track of expenses has become an essential part of our lives. Because traveling for work can reduce your tax liability frequent travelers, and those who make use of their vehicles for business related purposes need to ensure the most accurate records if they want to claim mileage when filing their taxes with the IRS.
The IRS allows for the deduction of costs relating to the business use of your vehicle, subject to certain rules and limits. But, to qualify, you must meet strict substantiation requirements. While an accurate log of miles traveled is essential when it comes to making tax submissions, it is not an easy task. Being diligent in logging your numbers can be a full-time job. Fortunately, there are mileage tracking apps that can help make expense tracking easier.
Mileage tracking apps are designed to help you record the distances you travel for work, while keeping a record of the associated expenses. They offer a number of features that make tracking and recordkeeping easier. We take a look at some of the most popular and user-friendly apps to help you keep accurate travel records.
The IRS allows for the deduction of costs relating to the business use of your vehicle, subject to certain rules and limits. But, to qualify, you must meet strict substantiation requirements.
1. Quickbooks Online
QuickBooks Online is popular to serve the needs of freelancers and self-employed individuals. It offers a range of features that includes automatic mileage tracking, and allows you to distinguish between business and personal miles within the app.
Quickbooks mileage tracking takes place automatically and in the background as it works by using GPS, but if ever you don’t have your mobile device on your business trip, you can also log miles manually.
Drivers or staffers on your team that make use of their vehicles for business purposes, can use QuickBooks Online mobile app to automatically tracks their business trips from start to finish. The best part is that the app allows you to pull detailed mileage reports that gives you a breakdown of all miles traveled, at the click of a button.
2. Zoho Expense
Zoho Expense is an online expense reporting software that automates expense recording and streamlines reporting within your business. The app allows employees to record mileage through GPS and automates mileage tracking without compromising on data accuracy or security. With Zoho, individuals that travel for work can benefit from the automatic mileage tracking management the app provides, but businesses too can stay abreast of mileage expense budgets within the business, thanks to the app’s in-depth mileage reporting ability.
3. Everlance
Everlance is a mileage and expense management app that uses GPS to track miles automatically, saving employees and self-employed individuals who travel for business purposes time and money come tax season. The software also serves as an end-to-end solution to track miles traveled while managing compliance according to business policies through its reporting ability. The software can also be integrated with your bank to help manage team reimbursements for your business.
Keeping track of the miles you travel for business purposes is imperative to file accurate tax returns. Unreliable data can put you at risk of investigation and multistate tax penalties. If you travel between states, it is advisable to consult with an expert to help you manage your tax portfolio in a way that safeguards you against run-ins with the IRS.
Fusion CPAs are equipped to help individuals and businesses with tax preparation and tax filing. We offer financial planning, tax preparation, bookkeeping, and software solutions.
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