What Is Mileage Tracking and Why Do You Need It? Auto Reviews by Auto5097 - November 15, 20220 Using a mileage tracking app to keep track of your car drives can save you time and money. It automatically records your drives and categorizes them with a swipe. MileIQ is the most trusted mileage tracking app, with over 80 billion miles and $10 billion in reimbursed mileage. Less Administrative Time Mileage tracking is crucial for real estate agents. They are swamped and must take notes for every trip they make. However, if this is done manually, the task can take up to 21 hours a year per employee. For a large company, this could amount to over two hundred hours. Mileage tracking solutions can make the process of logging mileage easier and save time. Modern mileage tracking app systems allow you to streamline administrative tasks by automating the entire process. The software works in the background, automatically recording every mile drove and its start and end locations, time, and route. Mileage tracking systems can also be straightforward to implement. By automating mileage reporting, businesses can save time and resources in the HR and accounting departments. Automatic mileage tracking software can be integrated with payroll software, making the process of reimbursed expenses easier for HR and accounting staff. In addition, advanced reporting helps the finance department get better insights from the data collected. These insights can help reduce fuel costs and reward more efficient employees. Mileage tracking software can help organizations reduce administrative time and improve the efficiency of their fleet management. Tax Deduction Mileage tracking is essential for claiming a tax deduction for your work. Not only will you be able to prove how many miles you drove in a particular year, but you’ll also be able to prove that you incurred deductible mileage. Fortunately, some tremendous mileage-tracking apps make it easier to track your travel. Some apps automatically detect travel and log it, while others allow you to categorize your trips by purpose and run reports documenting deductions. However, you can still claim a mileage tax deduction even if you need to keep detailed records. The IRS has made it very easy to calculate your business mileage deduction. You can add up the miles you drive to your business and multiply that by the standard mileage rate. For 2020, the standard mileage rate is 56 cents per mile. This means you can claim a tax deduction of up to $3,360 per year. However, remember that you must meet specific requirements to get the deduction. If you use your car for business, you will quickly accumulate a lot of mileage. The more miles you drive, the more repair and maintenance your car will need. You can deduct up to five hundred dollars for your car expenses. If you use the car for business travel, it’s important to note that the mileage deduction can be reduced by up to twenty percent. Savings Mileage tracking can make a significant impact on the bottom line of a business. It will allow employees to maximize their savings and give the business the information it needs to make informed decisions. The most important thing is to use the tracking system as efficiently as possible. If you don’t, you’ll find yourself paying a lot more than you need to. There are several options for mileage tracking, but the most efficient solution is an app for mobile devices. These apps automatically log business miles, so you can save time manually tracking mileage. While maintaining an accurate mileage log is possible, it takes time and effort. The best mileage trackers will also have a calculator to calculate how much money you can save. Another benefit of mileage tracking is that it can help you get a tax refund. You can claim up to 58.5 cents per mile for business travel. In addition to business mileage, personal mileage can also be deducted under certain circumstances. Sometimes, you can claim personal mileage for medical or charity work. Mileage tracking has many benefits, and it may be worth the investment. A mileage-tracking app can save you a lot of money, especially if you have a small business. It also helps you avoid overcharging, and IRS audits. Moreover, the app will let you organize your expenses and receipts in categories and save them for future use.