In the hustle of everyday work, tracking mileage can be a cumbersome task, often prone to human errors and missed opportunities for deductions. This article explores the necessity of mileage tracking apps and why they have become indispensable for individuals who drive regularly for work.
Manual Tracking Methods vs. Digital Solutions
While using a notes app or pen and paper may seem convenient, manual tracking can lead to missed miles and miscalculations. Digital spreadsheets like Excel or Google Sheets offer better organisation but still leave room for inaccuracies. Enter mileage tracking apps, providing an efficient and accurate alternative.
How Mileage Tracking Apps Work
Mileage tracking apps leverage GPS technology for precise and automatic mileage recording. Whether manually starting and stopping trips or utilising automatic detection, apps like Everlance ensure you never miss a mile. They also allow for easy classification of trips as business or personal, simplifying the process of organising expenses.
Why Use an App for Mileage Tracking?
1. Tax Savings: Mileage tracking apps, like Everlance, save more on taxes by ensuring every mile is recorded accurately. This is particularly crucial for those manually tracking mileage, where missed miles can accumulate over time.
2. ATO Compliance: ATO-compliant records require detailed information. Mileage tracking apps effortlessly capture data like trip dates, destinations, odometer readings, and total miles, reducing the risk of audits.
3. Time Efficiency: Keeping meticulous records by hand is time-consuming. Mileage tracking apps streamline the process, allowing users to set up auto-recording and effortlessly classify trips. This saves time and ensures accurate records.
Who Should Track Business Mileage?
Anyone driving for work, whether for reimbursement or tax deductions, stands to benefit from mileage tracking. This includes employees seeking reimbursement, independent contractors with tax-deductible mileage, and professionals like delivery drivers, real estate agents, sales reps, and more.
Self-Employed Workers and Tax Deductions
For self-employed workers responsible for their taxes, mileage tracking becomes a crucial strategy for lowering taxable income. Mileage tracking apps offer a convenient solution for maintaining well-documented records, maximising deductions, and ultimately reducing tax liabilities.
In conclusion, the adoption of a mileage tracking app, such as TaxFox, emerges as a valuable tool for individuals navigating the complexities of mileage tracking. Whether seeking tax deductions, reimbursement, or simply efficient record-keeping, the advantages of these apps extend beyond convenience to contribute significantly to financial and time savings.