It may be too much of a routine but it is important to have a clear mileage tracking system for the employees of your company to ensure that you can maximize your savings in the accounting aspect of your business. IRS has a requirement that mileage must be recorded properly for your business to avail of the deductions in transportation. This is why it is important to implement a mile tracker app in order for accuracy to be ensured.
To properly record the mileage, one must include all miles that are traveled, the dates for all of the travels, and the name and pripose for where you are traveling to. Here are five more reasons why implementing mileage tracking application for all your employees is crucial for your accounting.
1.Say Goodbye to Complex Spreadsheets
Traditionally, mileage is tracked using spreadsheets. While this has worked for a long time, they can sometimes get too complex and confusing. Moreover, there are risks of losing the record as one can only update the spreadsheet when they get the chance to open a computer. With a mileage app, an employee can record all data for mileage in real time.
The apps also have a system and an algorithm to organize the records so the user can export it in the necessary format.
2.More Convenient and a Lot More Accurate
Most mileage tracking apps can be integrated with the smartphone’s GPS. This allows the mileage data to be automatically forwarded to a web-based or a cloud-based storage. These storages then automatically record and updates the data into the spreadsheet systems.
This eliminates the hassle of constantly tapping your phone or constantly checking the spreadsheet if you got the data right.
3.Fleet Management Utilization
Mileage tracking apps are not just useful in tracking mileage data. They can also be utilized to manage the costs of different aspects of managing the company vehicles. Most apps can also display and analyze readings from odometers and correlate the data to the fuel and maintenance.
This whole process is very useful if you want to have a better understanding of the costs as the data is more accurate. Ultimately, this could potentially lower down your costs entirely.
4.Avoidance of Fraud and Abuse from Employees
With a mileage tracking app that follows a real-time system can ensure that the employees are tracked honestly and that they maintain their integrity. This is especially applicable when employees use their personal vehicles for personal vehicles. The mileage tracking apps can ensure that they are only paid for the right amount of mileage they incurred.
5.Accurate Accounting
Of course, the bottom line of mileage tracking is to have a more accurate accounting that is needed for tax deductions. The ability of the apps to store data in cloud-based systems is essential in computing more accurate accounting books.
With all these positive benefits that you can get with a mile tracker app, you should start considering implementing a complete and foolproof system of tracking mileage for the employees in your company. This can prove to be very beneficial for your business in the long run as you will notice that you are able to save on tax when your mileage tracking is properly done.
If you want to use the Best Mile Tracking App, the author of this article suggests MileCatcher.