Here’s why Tracking vehicle mileages can be important:
Many small business owners miss out on deducting their business-related mileage. By tracking your vehicle mileage, you can enter, sort, and print lists of your vehicles and the mileage you've driven for work-related tasks. You can use this information for your tax deductions and for billing your customers.
Limitations: You cannot use this feature to reimburse employees or vendors for mileage. You cannot track specific vehicle expenses, such as gas, tolls, etc. with this feature. However, you can track these types of expenses by entering bills for them as the expenses are incurred by your employees. Also, if you converted your data from a Quicken file, your vehicle mileage information does not transfer to QuickBooks.
In general, you can use one of the following for figuring out your vehicle mileage expenses:
- Standard mileage rate
- Actual expenses
Important: Consult with your tax advisor or accountant to determine if you can deduct the costs of operating and maintaining your vehicle and which method you should use.
- Go to the Company menu and click Enter Vehicle Mileage.
- Select the vehicle (or add a new vehicle) for which you want to enter a mileage record.
- Enter the start and end dates for the trip.
- Enter the mileage from the odometer start and end readings. QuickBooks will calculate the total mileage for you, based on these numbers.
- (Optional) If you plan to bill a customer, select the Billable checkbox.
- If you selected to bill a customer for the mileage, click the Customer: Job, Item, and Class (if class tracking is turned on and it is applicable to this record) drop-down lists and choose the appropriate items.
- Save your mileage record.
For more QuickBooks Tips, explore http://bit.ly/TipSeries. If you have any questions about this tip or any other tips, please email Marketing@CoverRossiter.com or call 302-656-6632. Visit our website at www.CoverRossiter.com/ for more information about our firm and its services.
