Professional Community for Car Dealers, Automotive Marketers and Sales Managers
Despite your excellent accounting and bookkeeping skills, you may find it intimidating to track the business mileage when driving your car. This is where you need an efficient mile tracking app that can manage your mileage logs and save you from the IRS audit trap. An app can automatically track the miles covered for business purposes. When looking for a mile app, there are many factors that you should consider for making the right selection.They include:
In the USA, the IRS or Internal Revenue Service issues the standard mileage rates that are used for calculation of business deduction of a vehicle used for business purposes. When these rates are used for deduction, you can’t include the vehicle-related expenses like repairs, maintenance, and registration charges in the calculation. Hence, many businesses use their own business mileage rates. To manage the deductions according to these rates, you need a mile app that allows customizable rates for mileage tracking.
The Calculation of Mileage:
The mileage tracking apps use GPS or Global Positioning Satellite system for tracking your exact location and distance travelled. An accurate app will use GPS coordinates to log this distance covered for the business trips in a precise manner. The app will log this complete data and compute the total miles traveled by you. This distance will be multiplied by the mileage rate for tax deductions or for employee reimbursement. When looking for a mile app, prefer an automatic tracking system to minimize the hassles.
There are some advanced Android-based apps that use automated triggers to start and stop the logging of distance traveled during business trips. If there is a Bluetooth device in your vehicle, your Android device will automatically start tracking the mileage whenever this device is paired to the vehicle’s Bluetooth. Also, these apps allow mileage tracking through the current charging state of your device. For instance, if your Android device is plugged into the vehicle’s charger, the app will start tracking the miles automatically. They reduce inaccuracies in the system.
Accurate Log Management:
An app can effectively track the business mileage and record this data at a centralized portal. Now, it is essential to manage this data for claiming deductions. Here, you need a system that allows exporting of this data to a spreadsheet. This sheet should be prepared in accordance with the specifications of employer or IRS. If you are a business owner, you must prefer an app with a rich account management system. An advanced app can synchronize the varied travel logs to manage this data on the web and prepares rich reports in a prescribed format.
These are the factors to keep in mind when looking for a mile app to claim tax deductions.