Mileage Tracking is one of the major issues especially with small and medium-sized businesses. Since mileage cost is tax deductible which ultimately reduces the tax liability, it is important to track all your business mileage expenses whether incurred by the business owner or employees.
There are many apps out there that track your business mileage, only few are reliable —With the QuickBooks online being the leading choice of thousands of businesses globally. The QuickBooks Online Mileage Tracking system is relatively new – watch a short 30 second video to get acquainted – and a lot of business owners are still curious as to how the QuickBooks online helps track mileage. This article focuses on what the QuickBooks Online Mileage Tracking system is and how does it track your business mileage!
What is the QuickBooks Online Mileage Tracking System?
The QuickBooks Online Mileage Tracking system is a one-stop solution for your business mileage tracking. It has both automatic and manual tracking features and tracks the mileage of all your business vehicles.
With a few customizations, it will automatically keep track of the mileage of all business vehicles. Moreover, it automatically calculates your total mileage allowance based on the data, so you don’t need to do any number-crunching. Here’s how it can help you track mileage.
How Does QuickBooks Online Track Mileage?
To activate Mileage Tracking in QuickBooks Online, you would need to add all vehicles used in the entity manually into the system along with other details like number plate and any other data that you want to add. The more data you put in, the more accurately the system will be since you will be able to easily identify every single vehicle.
Once you have registered all your business vehicles, the next step is to install the QuickBooks App on the particular phone that will be used by someone in the vehicle. When you open the app on the phone, navigate to the mileage section where you will be able to start auto tracking.
Now, whenever the vehicle is used for business purposes, all you need to do is open the app and activate the toggle button. The QuickBooks Online will automatically start tracking the mileage! It is noteworthy to mention here that you would need to keep the QuickBooks app open in order for it to accurately track the vehicle’s mileage.
In addition, the app also has the option to switch into personal and business mode. This is helpful when the vehicle is being used for both personal and business purposes and once you select the personal mode, it will add the mileage into your personal account instead of adding it into the business’.
It might seem a little complicated at first, but it isn’t! The QuickBooks Online Milage Tracking system keeps track of every single vehicle and generates detailed reports at the end showing the mileage of all vehicles. It lists all the trips that you can view in isolation in order to make sure no omissions have been made.
While you may be able to manage everything manually, it gets confusing as you grow your business. To efficiently keep track of your business mileage, the QuickBooks online milage tracking system is an easy solution. It automates each and everything related to business mileage tracking and lets you focus on other business tasks instead of wasting hours and hours recording and calculating mileage.
Although the QuickBooks Online is easy to set up as compared to other apps out there, it can get tricky if you have tens of vehicles with different carbon emissions and/or used for both personal and business use. At Citrine Accounting and Taxes, we have a team of certified QuickBooks operators ready to set up your custom QuickBooks online mileage tracking system. Let’s create something great. We are one click away!