Effortlessly Log Your Business Miles with QuickBooks Online’s Mileage Tracker Tool

QuickBooks Online includes a mileage tracker feature to assist businesses in keeping track of their vehicle expenditures for tax reasons. The Canada Revenue Agency (CRA) in Canada permits companies to claim a company tax deduction based on the distance traveled for both personal and professional reasons. In this article, we’ll talk about the QuickBooks Online Mileage Tracker tool and how it can make keeping track of your vehicle expenses for tax reasons easier.

What is a Mileage Log, and Why Do You Need it?

Your business travels are documented in a mileage journal, which also includes the date, reason for the trip, location, and distance traveled. At the start and conclusion of the year, you should record the reading on your odometer. Add up all the kilometers recorded in your logbook and split it by the overall mileage to determine the percentage of work-related mileage. You cannot take the mileage discount if you don’t keep track of your miles. While the CRA views the commute from your house to work as personal travel, you are able to deduct mileage for business travels to conventions, client meetings, and other destinations.

Who Needs to Use a Mileage Tracker?

Anyone who drives for work should maintain track of their mileage. The mileage deduction is accessible to freelancers, independent contractors, and proprietors of unincorporated businesses if they are self-employed. Your employer must also require you to pay for your motor vehicle expenses in order for you to be qualified for this deduction.

What Counts as a Deductible Mileage in Canada?

You are able to deduct mileage as one of your company expenses under the CRA. The CRA considers a variety of expenses to be deductible, including trips between offices, client meetings and meals, business-related entertainment, business travel, running tasks for your company, and going into town to buy office supplies.

How to Keep a Mileage Log?

You can record all the necessary information for a mileage journal in a paper notebook or in a word-processing document. However, using mileage tracker software makes it simpler to streamline the record-keeping procedure. The CRA mandates that you maintain all business documents for a minimum of six years; this requirement includes logbooks and data from mileage tracker apps. This information may be crucial if you are audited. Your business, commuting, and personal miles, the business purpose connected to the deductible drive, the mileage (number of kilometers) for each deductible journey, the dates of your deductible drives, the start location, and the destination are all parts of the paperwork you need to monitor mileage.

QuickBooks Online Mileage Tracker

For businesses to keep track of their vehicle expenses for tax reasons, QuickBooks Online has a mileage tracker tool. You can download the QuickBooks Online mobile software to your phone to access the mileage tracker feature. You can easily log your kilometers with the CRA by using QuickBooks Online on your phone to automatically monitor your miles as you drive.

How QuickBooks Mileage Tracker Works

You can monitor your mileage automatically with the help of the QuickBooks Mileage Tracker app. The app logs your trips and determines the distance traveled for business reasons using the GPS on your phone. The travels can then be clearly categorized in the app as either personal or business.

Install the QuickBooks Self-Employed app on your iOS or Android smartphone to get started. Although the software is available for free download, using the mileage tracker function requires a QuickBooks Self-Employed subscription. Once the app is loaded, take the following actions:

     

      1. Configure your vehicle information: Type in the make and type of your car, the license plate number, and other information.

      1. Enable automatic tracking: to have the app keep note of your mileage. As you drive, the app will record your journeys in the background.

      1. Classify your trips: After you’ve returned from a journey, open the app and designate whether it was for personal or professional reasons. To help you remember why you are traveling, you can also write notes.

      1. Export your mileage information: Export your mileage information to a CSV or PDF file to give to your accountant when it’s time to submit your taxes. The information can also be used to estimate your annual vehicle costs.

    Benefits of Using QuickBooks Mileage Tracker

       

        1. Saves time: You don’t have to physically log each trip because the app tracks your mileage for you. This avoids missing any deductible visits and saves time.

        1. Accurate tracking: The app tracks your travels using the GPS on your phone, so you can be sure that the mileage information you enter is correct.

        1. Easy to Use: The app is straightforward to use and browse, making it easy to log your trips and categorize them as personal or business.

        1. Secure: QuickBooks employs encryption to safeguard your data because it takes data security seriously.

        1. Cost-effective: For freelancers, self-employed people, and small business owners who need to monitor their mileage for tax reasons, QuickBooks Self-Employed is an affordable option.

      Conclusion

      Tracking your miles is crucial if you use your car for work in order to be able to deduct the cost of the car from your taxes. It’s simple to track your travels and determine your deductible miles with QuickBooks Miles Tracker. For independent contractors, freelancers, and small company owners, QuickBooks Mileage Tracker is a helpful tool with automatic tracking, precise data, and user-friendly features. You can streamline your mileage monitoring with this app and save time and money during tax season. CPA4IT is pleased to provide an exclusive 40% discount to all of our customers on QuickBooks products. We are able to pass along significant savings to our clients as trusted partners of QuickBooks, enabling them to manage their money more skillfully and successfully. Our clients can benefit from all that QuickBooks has to offer at an unbeatable price with our exclusive deal. So what are you waiting for? Take advantage of this tool and more using your QBO account by clicking here.

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      Pay Less Tax

      A great small business tax accountant does more than just measure value, they create it. At CPA4IT our goal is to save you substantially more than it costs you for our services. Over the last 30 years we have developed tax strategies designed to help you keep more of your hard earned money. If you would like to learn how we can help you pay less tax, simply download our FREE Guide to Pay Less Tax.