Have you read our blog post about the new automobile allowance limits for 2021? Well, we’re carrying that forward by sharing tips on ways to better track your mileage below!
If your business involves any driving, you should be tracking your mileage. But “how?” you may ask. There are a number of options available to you. If you’re thinking that you’re already drowning in paperwork and simply don’t have the time, consider this: your time is money and if you’re not tracking the mileage you put on your vehicle in some form you are throwing away cash that you could use to reinvest in your business.
Understandably, the old-fashioned of tracking your mileage on paper is even more time-consuming and daunting. However, there is the technology that can do this for you. With the variety of highly intuitive, easy-to-use mileage tracking apps available today, there is little reason not to be tracking your mileage. Keeping track on napkins or receipts in a cup holder in your vehicle? Not for much longer!
Uber drivers, photographers, manufacturers, bakeries, HVAC businesses, plumbers, electricians, or anyone who is self-employed or owns a business, will reap the rewards.
How to Keep Track for the CRA
The Canada Revenue Agency (CRA) states that keeping an accurate logbook of business travel maintained for an entire year is the best evidence you can have to support your motor vehicle expense claims.
The following information should be recorded in the logbook each time the vehicle is used for business purposes:
- Starting point
- Purpose of your trip
- Vehicle starting mileage
- Vehicle ending mileage
- Total kilometres that are driven.
As we mentioned, you don’t need to do this by hand! The following are a few apps, both for Android and iOS, that can help:
- MileIQ: IOS and Android,
- Mileage Expense Log: IOS only,
- TripLog: IOS and Android, or
- QuickBooks: Mileage tracking is included with QuickBooks Self-Employed.
Using any one of these apps, whichever you determine (and we can help!) works best for your business, you should be able to:
- Automatically capture mileage,
- Not worry anymore about over-reimbursing,
- Streamline your reporting and approval procedures all while managing multiple users with ease,
- Accurately expense tracking for tax deductions for every type of business, and more.
To help determine which app works best for your business, and for any assistance on the ins and outs of the best practices for your business, KBH is Here to Help You Succeed.