Small Business Mileage & Expense Tracking
Last updated on August 2nd, 2018 at 06:01 pm
Mileage & Expense Tracking For Small Businesses
Right now over 400,000 freelancers, employees, self-employed individuals & small businesses in America use Everlance every day to automatically track their business mileage and expenses.
The average Everlance user sees over $6,500 in yearly deductions, and small businesses, especially those with high expenses and frequent vehicle travel see many times more than that.
Before we jump right into the “why’s” and “how’s”, we’d like to say that of all of the customer segments listed above, mileage & expense tracking for small business is one of the most important tax tools in your arsenal.
Why Should I Track My Business Mileage?
The best answer for this is very straightforward: deductions!
As a small business owner you need every legal tax deduction you can get, right? Would you ignore $10,000 – $20,000 in tax deductions each year if you knew you could legally take them?
The more you drive for business and the more you spend, the more you save – it’s as simple as this, and Everlance helps you keep track of all of it.
The IRS Standard Mileage Rate
What is the IRS Standard Mileage Rate & Why Is It Important?
The IRS allows for a deduction of $0.545 for each mile driven by the taxpayer for business, charitable, medical or moving purposes.
This means that for every mile you drive for business, charity, medical or moving the IRS will allow you to deduct fifty-four and a half cents.
As an example. Let’s say you tally up your yearly business mileage and it comes to 38,830 total miles.
If you take the total mileage (38,830) and multiply it by the standard mileage rate ($0.545) you get a total deduction of: $21,162.35
That just gave you 21,162 reasons to track your mileage!
For businesses that drive often, taking this deduction is a no-brainer. At nearly $0.55 per mile it really won’t take long to start racking up the savings and chances are that most small businesses are tracking their mileage to take advantage of this.
…but are they tracking accurately and getting every possible mile?
Unfortunately, many businesses are still using the outdated and error-prone method of mileage log books. While there’s nothing inherently wrong with the pen-and-paper strategy, it’s open to inaccuracies and human error.
For both individuals and businesses, it’s incredibly important to maintain accurate, IRS-compliant records.
IRS mileage log requirements are as follows…
- A record of your mileage: Every mileage log needs to have the total number of miles driven that you’re planning to deduct using the IRS standard mileage deduction rate.
- The date of your business trips/rides: Each ride or full trip needs to have dates and mileage attached as a complete record. Just as important is the fact that it must be a business trip as you cannot deduct personal mileage.
- Location & Purpose: Each trip needs to have a location and purpose, i.e. San Francisco, sales meeting w/Ace Plumbing.
Rather than writing down your mileage, date & location/purpose after each trip, or estimating your mileage at the end of the month, wouldn’t you rather have an app that just did this for you automatically?
This is what Everlance was created for. We wanted to make tracking mileage & expenses easy and foolproof.
Track Business Mileage
Let’s take a look at how you track mileage with Everlance.
- Each time you drive Everlance automatically records your trip in the background using GPS for the most accurate, hands-free way to record business mileage.
Record Business Trip Date
Recording the date & time has never been so easy!
- Everlance automatically records the date & time of each trip as it happens. Everlance never forgets to record these important details. Each trip is automatically timestamped and logged accurately and immediately.
Record Business Location & Purpose Of Trip
Let’s see how Everlance records location and purpose.
- Everlance makes this incredibly simple. You start driving and then when you’re done with the drive you swipe left or right to classify the trip as either business or personal. You can then view the entire route on a map and see exactly how much the trip was worth!
Nothing should get in the way of taking every expense-related deduction you’re owed, and with Everlance you have the perfect tool to do just that.
Tracking your mileage is just one piece of the IRS-deduction-puzzle. Mileage, after-all, is just a type of expense.
Let’s see how Everlance makes it easy to track all of your expenses and get a complete picture.
Expense Tracking For Small Businesses
You know mileage tracking is important. However, did you know the other expenses such as airline tickets, parking fees, tolls, hotels, food & entertainment can often be much larger than mileage?
Think about all of the little things you purchase daily during the course of business. All of those expenses really add up.
When you combine them with the business mileage you’ll start to see some substantial savings, however – how do you track them?
We bet you’re either still using paper receipts, importing your bank data into Quickbooks or keeping a running tally in Excel.
Much like mileage tracking, wouldn’t you rather have an app that just takes care of all of this for you? Everlance does!
Everlance tracks business expenses in 2 easy ways.
1.) You can add each business expense manually as they happen.
2.) You can link your bank account or credit card and we’ll add them for you.
For option #1 at first glance, it’s not too different from manually entering expense data into a spreadsheet. However, there’s a lot more flexibility to it.
- You can enter expenses for any date. This means that if you forgot an expense 3 months back, you can simply date it correctly and it slots right in.
- You can attach & store receipts. Date, time, title, description – it’s all there.
The power of manually entering business expenses increases flexibility, but the automated process (option #2) is the killer feature.
Would you rather manually enter data or have the app do it for you? Exactly!
Everlance has an amazing feature that gives you the ability to link your bank account(s) and/or credit card(s) directly to the app.
When you link these financial accounts Everlance will automatically find all of your expenses and add them to your Everlance account with the correct date, time, amount & corresponding information.
That’s a completely automated process compared to any of the alternatives above.
Why would you keep a shoebox full of receipts when you can simply snap a pic of the receipt and store it securely on the cloud forever?
Why would you keep a manual spreadsheet in Excel when you can let Everlance pull all of your expense records and import them for you?
Everlance makes tracking company mileage & business expenses an absolute breeze. All you have to do is download the app, sign up and it starts tracking.
From the moment you drive, to the second you finish – Everlance tracks your entire trip.
When expenses hit your bank account or credit card, they’ll instantly be imported to your Everlance account and viewable on the Everlance Dashboard.
…but wait, there’s more. What good is tracking mileage & expenses if you can’t do anything with them?
With Everlance, reporting is just as important to us as tracking expenses. In order for you to take proper deductions, you need accurate, IRS-compliant records and a way to deliver them to a tax preparer or directly to the IRS.
Everlance Dashboard is your answer.
This feature gives each user the ability to login (mobile or Desktop) and view snapshots, or the complete picture and export any or all of their account data.
When it comes time to do your taxes you only have to press a button and your entire full year expense data (mileage + expenses) will be exported to .CSV format. From there you can choose to import this file directly into your favorite tax software or hand off to your tax preparer.
Using Everlance to track and report your business mileage and expenses is incredibly easy. Every user has the option to add, edit & delete any data they choose from mobile or Desktop – you have total control!
If your business is ready to try a better way to track mileage & expenses there are 2 great options for you depending on the number of users you need.
- Everlance Teams: For businesses with more than 1 person, an Everlance Teams account is required for the ability to consolidate & manage accounts. For more information on how Everlance Teams work, please visit the Everlance Teams page to see how it can help you track & manage employee mileage & expense reports for tax deductions or reimbursements.
Everlance Teams has all of the features of Everlance Premium, with the added benefit of managing every employee or contractor in one easy dashboard. This makes reimbursements and record keeping incredibly easy. You also get 1 bill each month and can add or delete users at any time – meaning Everlance can scale with your business. Everlance Teams costs $25/user. Special discounts can be made for larger team sizes
- Everlance Premium: For single users, or businesses with only 1 employee, Everlance Premium is the best option. While you can use Everlance Premium for free for 7 days, and Everlance Basic free forever afterward – there are some limitations with the free version that we feel warrant the need to explain the difference.
- Everlance Basic: Basic allows 30 free rides each month. If you drive more often than that for business you’re going to need to upgrade to Everlance Premium. Everlance Basic does not have automatic expense tracking. This feature is only found on Everlance Premium.
For $5/mo (billed annually @ $60/yr) Everlance Premium gives you unlimited mileage tracking, unlimited receipt storage, & automatic expense management. Considering the average savings of $6,500 per person, this makes $60 per year an incredible deal.