Mileage tracking is essential to managing your fleet, but traditional ways can be time-consuming and complicated.
Paper and Excel logs are a waste of time and resources that can be eliminated with an automatic mileage tracker. This software will ensure that your mileage logs are accurate, easy to submit, and transferable.
Accurate Records
One of the most important benefits of using an automatic mileage tracking system is its ability to keep accurate records. This software can help businesses monitor fuel costs, optimize routes, improve tax compliance, and more.
Manual mileage logging can be time-consuming and highly inaccurate, so many companies have switched to an automatic system. These systems allow employees to plug a device into their car and let it track every mile they drive.
Besides being more accurate, these systems are cost-effective and easy to use. They can save managers time reviewing claims, reduce travel expenses, and increase productivity.
In addition, these tools can help HR leaders differentiate personal and business miles, keeping the risks of fraud and abuse minimal to none. They can also provide data on fuel and maintenance needs and vehicle depreciation.
However, these systems have their drawbacks. For example, they can be challenging to use if employees do not have access to a mobile phone or don’t agree with the policy.
If you’re considering adopting a mileage-logging solution, choosing an app that meets your needs and requirements is essential. Look for one that allows you to create a policy, ensures employees use their phones, and has a robust reporting and approval process.
Time-Saving
Aside from ensuring accurate records and tax deductions, automated mileage tracking systems also provide several time-saving benefits for fleet managers. They reduce the time spent manually logging miles and reviewing reports, allowing employees to focus on their work.
Drivers also benefit from an automatic mileage tracker, saving them significant time recording their business miles. With a GPS-verified mileage log, they can quickly verify each business trip without the risk of fraud or errors.
Moreover, they can save their employers money and time by reducing the fuel used and the overall costs of vehicle maintenance. This will help businesses keep their costs down and meet their environmental obligations.
In addition, an automated mileage tracker app, for instance, MileIQ, can help companies reduce their expenses by enabling them to identify under-utilized vehicles. They can then use this data to reduce their fleet sizes or to reallocate resources accordingly.
Mileage fraud is a significant issue for businesses, especially those that pay reimbursements for miles driven. This form of employee theft accounts for expense reimbursement fraud, but it can be prevented with an automated mileage tracker.
Manual mileage reporting is a cumbersome and inaccurate process involving much paperwork, including paper logbooks. It also requires lots of time for fleet management to review, calculate and compile reports. Fortunately, an automated mileage tracking system can streamline this process and save companies monthly hours.
Tax Deductions
You may be eligible to deduct your mileage expenses if you run a business. However, you must keep accurate driving records to claim this tax deduction.
If the IRS notices you have inaccurately logged your miles, they will audit you. This can lead to a significant fine.
To avoid this, you should use an automatic mileage tracking system that keeps records of all your business trips and expenses in a way that is easily accessible when tax time comes. This will save you both time and money.
You will also be able to create reports compliant with IRS rules. This will help you get the most exemptions possible.
Using an app to track your business trips can be time-consuming and complex, but it is worthwhile. It is also a great way to ensure you are not making math mistakes when recording your mileage readings.
Mileage is a valuable tax deduction for many business owners and employees. The IRS allows you to deduct cents per mile when traveling for work.
But this deduction is only available if you have accurate records of your miles and receipts for gas purchases. If you don’t, you cannot claim it on your taxes.
A good mileage tracking app will not only make it easy to keep track of your miles, but it will also let you know how much you are saving on fuel costs. These reports are beneficial for people who need to file their taxes.
Reporting
The benefits of using an automatic mileage tracking system for your business include accurate records, efficient management, and reduced costs. Mileage trackers can also help to reduce the risk of a company being audited by the IRS or other government agencies.
Mileage trackers are typically available as software or apps for computers, tablets, or smartphones. These apps provide real-time reporting on how many miles are being driven and what location they’re being traveled to.
They can also monitor fuel costs, optimize routes, and ensure compliance with federal regulations. In addition, they can be integrated with other software to provide a streamlined workflow for data collection and employee reimbursement.
For example, an insurance claims servicer, needed to improve accuracy and accountability for their mileage tracking while saving time for drivers and management. After trying numerous systems, they found to be the best solution.
The system was easy to use, saving them more than 24 hours of work a month! It also keeps them from the hassle of pulling manual reports when there are technical issues.
Unlike a pen and paper-based expense claim process, doesn’t invade employees’ privacy by tracking their location. Its GPS-based system lets management know where they are while on the road and can send help should they become lost.
