Small businesses
Small business mileage tracking: What you need to know
Understand the essentials of small business mileage tracking, from IRS requirements to simple tools that improve accuracy, efficiency, and reimbursement workflows.
What is mileage tracking for small businesses?
Mileage tracking is the process of recording the miles employees or business owners drive for work-related purposes. For small businesses, accurate mileage tracking is essential for managing costs, staying IRS-compliant, and ensuring fair reimbursements.
Every business mile driven represents a deductible expense or reimbursement opportunity. In 2025, the IRS standard mileage rate is 70 cents per mile. That means if an employee drives 10,000 business miles in a year, they’re entitled to $7,000 in reimbursements. Without proper tracking, businesses risk inaccurate reimbursements, employee dissatisfaction, or IRS penalties.
Why mileage tracking matters for small businesses
Small business owners and employees often underestimate the importance of mileage tracking. But done right, it delivers significant benefits:
Accurate reimbursements
Employees get paid fairly for business driving
IRS compliance
Proper records protect against audits and ensure deductions hold up
Cost management
Tracking mileage reveals real travel costs, helping with budgeting
Employee satisfaction
Clear systems prevent disputes, reduces frustration, and improve trust
Without a system, businesses risk overpaying, underpaying, or missing deductions altogether.
Step-by-step guide to tracking mileage
Set a mileage policy
Define what counts as business mileage (client meetings, site visits, deliveries) and outline reporting requirements.
Choose a tracking method
Options include manual logs, spreadsheets, or automated mileage tracking apps.
Record essential details
For each trip, document the date, total miles, destination, and purpose of travel.
Generate reports
Use logs to calculate reimbursements or business deductions at tax time.
Stay updated
Review IRS mileage rates annually to ensure compliance.
Common mileage tracking methods
Paper logs
Excel/Google sheets
Everlance
Pros
Free, no setup required
Organized and shareable
Automatic tracking, IRS-ready reports, saves time
Cons
Time-consuming, easy to lose, error-prone
Still manual, relies on employee discipline
Requires app installation
Manual systems work for very small teams, but they become inefficient and error-prone as a business grows. Automated tracking apps like Everlance streamline the process and ensure accuracy.
How Everlance simplifies mileage tracking for small businesses
Everlance was built to take the stress out of mileage tracking for small teams and business owners. Instead of chasing employees for logs or juggling spreadsheets, you get accurate, automatic records.
Here’s how Everlance works:
By automating the process, Everlance saves time, reduces errors, and keeps both businesses and employees compliant.
Start tracking mileage with Everlance today!
Download for free"Everlance keeps our reimbursements fair and accurate. My team loves it because they don’t have to log trips manually anymore."
David H.,
Construction Manager
Free tools & resources for small business mileage tracking
Mileage log template
For teams who still prefer manual tracking
IRS mileage rate updates
Stay current on annual rates
Mileage deduction calculator
Estimate costs and potential savings for your business
These resources help small businesses create systems that are simple, transparent, and IRS-ready.
Small business mileage tracking FAQs
What counts as business mileage?
Trips for client meetings, deliveries, errands, or site visits qualify. Daily commuting from home to a fixed office usually does not.
Do small businesses have to reimburse mileage?
Federal law doesn’t require it, but some states mandate reimbursement. Even when not required, it’s best practice to reimburse fairly.
What’s the IRS mileage rate for 2025?
The rate is 70¢ per mile for business driving.
Can small businesses deduct mileage expenses?
Yes, reimbursed mileage is deductible for the business and not considered taxable income for employees if handled under an IRS-compliant plan.
"We used to waste hours chasing employees for mileage logs. Everlance tracks everything automatically and generates reports for payroll."
Sophia R.,
Small Business Owner
Start tracking mileage the easy way
Accurate mileage tracking protects your business, saves money, and keeps employees happy. Whether you’re a solo entrepreneur or managing a small team, Everlance makes the process effortless.
Approve and reimburse quickly
.svg){kind=icon}
