As a business owner, when you or your employee uses a car for work-related purposes, every mile counts. Firstly, you will have to work out how much to compensate employees who use their own cars when running errands for your business. The Ultimate Vehicle Mileage Tracker Secondly, you will also need to work out how much to claim in tax deductions. If you’re relying on a manual logbook to record the miles you or your employees have traveled, it is easy to make errors that end up costing your business. Thankfully, this doesn’t have to be a problem for you anymore. You can now use a mileage tracker to accurately record your business-related travel. A good mileage tracker allows you to record details such as the date, purpose of the trip, destination, and distance covered. If you’re wondering whether you should use a mileage tracker, here are some points to convince you: 1. To Claim Tax Deductions For small business owners, maximizing your tax deductions can significantly boost your revenue. There is one tax deduction that many small business owners overlook: mileage deductions. Mileage tax deductions might not seem like much at first, but every business trip you take in your car adds up. This includes trips to meet clients, get supplies, or make customer deliveries. However, you shouldn’t include travel expenses for personal purposes in your tax deduction claim. You’re also not allowed to claim deductions for the cost of driving to your regular business premises. When your mileage expenses seem too lavish, this might raise a red flag with the Internal Revenue Service (IRS). If you want to get reimbursed for your business mileage, it is important to keep a detailed record of all the times you use your car for business. If you don’t have accurate records, your tax deduction claim might not be accepted. The IRS requires business owners claiming mileage deductions to record the date of each business trip, the number of miles traveled, and the purpose of the trip. By using GOFAR’s mileage tracker, you can accurately record all of the required details to make successful tax deduction claims. With a GOFAR mileage tracker, you will also have quick access to all your details, which makes for a hassle-free reimbursement on your tax claims. The cherry on top of this sweet deal is that you can also claim tax deductions on the cost of the mileage tracker! You should also include your car’s odometer readings to make your mileage tax deduction more credible. Note that the IRS releases annual guidelines – known as standard mileage rates – regarding mileage tax deductions. The standard mileage rates usually vary by type of mileage. For small business owners, the standard mileage rate for 2020 is 57.5 cents per mile. This is down from 58 cents per mile in 2019. Bear in mind that you can’t use the business standard mileage rate for more than five vehicles simultaneously. To read more on this and other limitations, look up section 4.05 of Rev. Proc. 2019-46. 2. To Boost Productivity Running a successful business is not an easy task. You will have to manage finances, create marketing and advertising campaigns, respond to customers, hire employees, handle legal issues, supervise a team…the list is endless. These tasks can be overwhelming for anyone. Any tool that makes your work a little easier means that you will have more time to focus on what really matters: creating and implementing a winning strategy for your business. Ultimately, this means your business will be more productive and generate more revenue. Here are a few ways that using a mileage tracker boosts your business’ productivity: When you utilize a mileage tracker instead of pen and paper, you will have an easier time logging in all the necessary details about your business-related trips. With fluctuating fuel costs, business owners can also use mileage trackers to better manage fuel consumption and increase profit margins. GOFAR’s mileage tracker is enabled with automatic location tags, which can discourage employees from making false claims about their business trips. A good mileage tracker will also help you avoid speeding fines, save on fuel, and get home safely from your business trips. You will have a window to look into your car’s efficiency, performance, and general health to catch any maintenance concerns early. 3. To Gain Accurate Data Imagine coming home from a trip to meet a client. You are exhausted and not in the mood to do mileage calculations. But you still have to write the details of your day’s business trips into your logbook. More likely than not, you will find yourself estimating the numbers as you try to recall the day’s expenses. These details can end up being a little off or entirely inaccurate. In the long run, errors will end up costing your business dollars in potential tax deductions. With the GOFAR mileage tracker, you will be able to easily and accurately log all the necessary details on your smartphone. All you need to do is plug the GOFAR tracker’s adapter into your car’s diagnostic port. The car’s data will be sent to the GOFAR app on your smartphone. You also have the option to include GOFAR Ray, which records all the necessary details in cases where your smartphone malfunctions. After purchasing the GOFAR mileage tracker, you will be able to install it yourself. You won’t have to engage a technician or use any tools at all! 4. To Track Your Car’s Health Imagine that you have a trip to visit an important client. But on the way there, your car’s engine starts sputtering. Are you low on fuel? Or could this be a sign of engine trouble? If not caught early enough, some common car problems can quickly cause greater damage, becoming more costly to fix. In a scenario like this, car problems can also make you late for business meetings…or make you miss them altogether. Eventually, this will harm your business as you lose clients and the revenue they would have brought into your business. With this in mind, it is important to keep your business vehicle in the best condition possible. As we have already mentioned above, one of the advantages of using a mileage tracker is keeping track of your car’s health. GOFAR’s mileage tracker will send diagnostic data on your car to the mobile app. You will receive instant alerts on your smartphone when a problem is detected. And you don’t have to worry about techy jargon! The alerts will be in plain English, explaining what the fault could mean and its severity. When you take your car to a mechanic to be fixed, you will be more knowledgeable. This might just help you avoid being overcharged by dodgy mechanics. If you’re not the kind of person who peeks under their car’s hood every day, getting a mileage tracker is a smart way to stay on top of your car’s maintenance and repair needs. In fact, installing a good mileage tracker on your car is like having your own miniature mechanic! 5. To Receive Handy Reminders As a business owner, it is obvious that your life is a busy one. While your attention is on running your business, it is easy to forget important details such as when to renew your car’s insurance. When you’re using a mileage tracker, you don’t have to worry about missing these important details. The GOFAR mileage tracker will send you relevant reminders, including renewing your car’s insurance, updating your vehicle registration, when to get your car serviced and so on. Therefore, you won’t be caught with expired insurance, will be safer, and avoid paying stiff fines! Start Saving With the knowledge you’ve gained from this article, you can be sure that getting a mileage tracker is the right move for your business. Join thousands of smart business owners from all over the globe who are using the GOFAR mileage tracker. Will GOFAR’s mileage tracker work with your car? Yes! GOFAR works with more than 42,000 car models. Find out if yours is among them. Both your car and your tax return will thank you for investing in GOFAR. You’ll see those dividends pile up year after year in money back from your taxes and car maintenance savings.