It is a fact that a great percentage of people are owners of vehicles which in most cases they use for business purpose and also for work related reasons. However, most business people are unaware of the huge amount of money that is spent on the roads which can be reduced. It is at this point that mileage and expense tracking become of great importance since tracking of mileage is of great necessity as it helps reduce expenses thus leading to great savings when one is to be taxed.
According to Internal Revenue Service, there are costs that are incurred when one uses his or her vehicle for business reasons. However, using the standard mileage rates helps a lot in reducing the mileage expense. For instance, the rates for the year 2018 in filing taxes for 2019 are: 54.5 cents per mile for business reason, 1.8 cents per mile for medical purposes and 1.4 cents per mile for charity reasons. From these rates we can deduce that the rate for business is quite high and therefore business owners should always cut down on their mileage expenses. It is also important to ensure that the rates being used are correct since they always change yearly.
Importance of a Mileage and Expense App
As opposed to manual mileage tracking, having an app to track mileage is very important especially to business people as it is a good solution to keeping track of the mileage expenses. A good mileage tracking app should be one that is able track and log automatically every drive. This is of great importance as it helps business persons to be able to concentrate on their work other than tracking mileage by them.
Features of a Good Mileage and Expense App
A mileage and expense app should be one that can store and maintain accurate personal and business record of mileage in upgraded PDF and Excel reports. Just by one tap users of the app should be able to get report on drives on a daily basis. In addition, a mileage and expense app should also be able to classify drives like categorizing the drives that are business related and those drives that are personal. For instance, just by swiping in a particular direction one should be able to make right classification of the drives.
Another good feature is that it should be easily available. It should not just be limited to smart phone but one that that can also be available on desktops, laptops and even tablets. It should also have features that are advanced like adding locations.
Other features that mileage and expense tracking app should possess are such as trip detection which should be able to track every drive automatically with no limits. The app should also be able to arrange trips based on one’s schedule and also be one that can synchronize both bank and credit card transaction in order to keep track of expenses. Of great importance is that the app must comply with the standards and policies of Internal Revenue Service (IRS).