A mileage log is an important business record that documents the miles traveled for work-related activities. It is a tool used to track mileage in order to document distance traveled and verify business expenses for reimbursement or tax deductions.
Creating a mileage log is an important part of logging business expenses. While some software and apps provide mileage tracking capabilities, it is best to also record your trips in a written log, either as part of a paper record or on an electronic device. Here are the steps you should take to create a mileage log:
Step 1: Choose Your Logging Method
The first step to creating a mileage log is choosing what method you’ll use to record your business miles traveled. Paper logs are the quickest and simplest, but an app or software program may be more convenient.
Step 2: Document Your Miles
Once you’ve decided on the way you’ll log your miles, the next step is to actually record them. For each trip, document the date, starting point, destination, round-trip distance, and purpose for the trip. This information should be recorded in your chosen log format for every business-related trip you take.
Step 3: Keep Your Logs Current
Make sure to keep your mileage log up-to-date throughout the year. This way, if you need to review the number of miles for reimbursement or for a tax deduction, the information is readily available.
Step 4: Save a Copy for Tax Season
At the end of the year or when you’re preparing your taxes, make sure to save a copy of your mileage log for deduction purposes. This should be saved along with the other pertinent paperwork and receipts.
Creating a mileage log is an important part of tracking business expenses. Following these steps will help ensure your log is complete and up-to-date, and make filing taxes or applying for reimbursements a time-efficient process.