Audit Proof Your Mileage Deductions With These Inexpensive Apps

Audit proof your mileage deductions with these apps. Image:
Audit proof your mileage deductions with these apps. Image: Flickr

If you’re going for a business-related drive, you might get a deduction during tax-time or a refund from your employer.

Indeed, self-employed persons and business owners appreciate the value of tracking their mileage.

Nevertheless, this process is time consuming because you must record the destination, date, and miles traveled.

Furthermore, proper formatting must be evident for IRS, which scrutinizes mileage deduction since numerous taxpayers abuse it.

The absence of a sufficient record is the major reason for losing this deduction when people undergo auditing by the IRS. Here’s a list of apps to consider for tracking your mileage.

Mileage Expense Log

This tracker is exclusively available for iOS and is one of the most affordable. Although a free version exists, it’s advisable you purchase the Pro version for $3.99.

Mileage Expense Log allows automatic tracking although the implementation can be a bit confusing. Nevertheless, when you figure out the interface, the app functions well enough.

TripLog

TripLog tracks your miles automatically based on GPS data and offers a manual option. You can use it free for up to five cars, complete with vehicle fuel-and expense-tracking as well as map-based route review.

To maximize it, you’ll have to upgrade to either Business or Personal plan, which cost $2.50/month ($25 annually) and $1.50/month ($15 annually) respectively.

These options include support for things such as cloud backup and automated tracking, receipt photos (for things such as gas expenses) and unlimited IRS-ready reports. You’ll discover that the automated tracking is more comprehensive than other apps in terms of how it engages.

It can begin when you connect it to the phone, when a Bluetooth connection is present, during a chosen period, or when it identifies sustained movement beyond 4mph. Users can also sync it with a Bluetooth OBD-II scanner, which would remove the need for battery-draining GPS.

Mileage Pad

Mileage Pad is a straightforward tool that has smartphone and Web apps with plans beginning at $5 per month for three users. Using your tablet or smartphone, users can track their mileage from anywhere.

You can access the app at different pricing plans. For instance, a small business can enjoy unlimited trips at $100/month for up to 50 users

Stride Drive

Stride Drive is an expense and mileage-tracking app that allows you to record your mileage by operating in the background while you drive. You can begin and stop recording your mileage for every trip or set it up for automatic recording.

Users can record their expenses and receipts from the app. Presently, it’s only available for Apple phones. You can access the free app if you have an iPhone, so don’t miss out.

Sherpashare

Sherpashare began as a means for drivers to analyze/track their revenue but they launched mobile apps on Android and iOS that facilitate mileage tracking.

You can try the free version, which enables the tracking of 60 trips monthly. After that, there’s a $5montly fee for the premium version.

While the tracking feature functions in a similar manner as other apps, you have the choice of grouping every trip as business or personal. This feature comes in handy for somebody who uses his or her car for rideshare and personal use.

Mileage Log+

If you’re constantly struggling to obtain precise and timely mileage logs from your workers so you can refund them, this app can solve your issues quickly.

Mileage Log+ is strictly for gas mileage and features a mileage log and IRS rates for compensation. Furthermore, the app can store frequent trips following a simple tap. Users can also share expense reports easily.

Expensify

The free app allows you to track mileage, business expenses, and billable time. It provides receipt capture and you can sync it with your credit cards, so you can pull in expenses automatically.

You can also use it to scan receipts and generate an expense report instantly.  You’ll also discover that Expensify allows you to record mileage expenses.

Final Thoughts

Tracking mileage is a major component of decreasing your overall tax burden and maximizing profits. However, if you lack reliable records, the Tax Court and IRS will reject your mileage deduction even if it’s clear that you drove for business throughout the year. To avoid this, you simply need to consider any of these inexpensive apps.

Dailey Bookkeeping Services is a Xero Certified SILVER Partner and a QuickBooks Online Certified Advisor, so if we can help you with your mileage needs, just give us a call, we would love to help you!  The owner, Jacqueline Dailey is a Certified Public Bookkeeper, an Advanced Certified QuickBooks and QuickBooks Online ProAdvisor, a Sleeter Group Certified QuickBooks Consultant and a Xero Certified Silver Partner. We work remotely so we can work with any company located in the U.S. If we can help you with this process or provide you with custom reporting, please give us a call. If we cannot help you, we will refer you to someone who can!  Feel free to visit our website at http://www.daileybookkeeping.com.

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