FreshBooks has announced the launch of its iOS application to help track mileage. With the application, customers can track their mileage, categorize business trips, and view potential tax deductions all from their phones.
This application comes in handy for businesses that require constant travel and can easily claim mileage for taxes. According to the company, the app helps simplify filling out logbooks, gas station receipts and keeping track of work-related travel.
FreshBooks Mileage Tracking App for iOS
With the new FreshBooks Mileage Tracking app available for iPhone and iPad, users can easily file expenses that come from meeting clients and other driving-related business. The app is available to FreshBooks customers in the U.S., Canada and the United Kingdom.
“Adding Mileage Tracking right inside FreshBooks makes it easier-than-ever for our customers to keep everything organized in one place and maximize their tax deductions,” says Mike McDerment, CEO and Co-founder of FreshBooks.
The Application in Detail
With Mileage Tracking, businesses can use their mobile device to send invoices, logging expenses and tracking business travel expenses. The application offers the capability to send customers invoices from the palm of your hands. You can also get real-time notifications when clients receive or view your invoices.
This comes with chat capabilities to continue communicating with clients. It also allows you to organize your receipts by capturing images of the receipts and file them. With the application, users can sync with their desktops and other devices without having to lose important invoices.
The application allows users to automatically track their mileage on the app as they drive. When the app is open it will prompt for a quick setup. This will then recognize when you are driving and automatically track your mileage. With a simple swipe, you can classify your mileage as personal or business-related. Once it identifies it is a business trip, it will tabulate your potential tax deduction.
This comes with a mileage log report which is synchronized with your FreshBooks account and stored as part of your potential deductible mileage. You can download and share the mileage reports on the go with your accountant, manager or clients. Additionally, it will give you a quick view and estimate of potential tax deduction at any time.
When tax season rolls around, the app will clearly identify the deductions from your business mileage.
Get Smart About Taxes
Navigating the complex world of taxes can be daunting for some businesses. It requires getting up to speed with the current regulations as well as a strong filing system.
small business owners have many tax responsibilities. They are required to personally pay estimated taxes as they earn money, and must withhold taxes such as payroll taxes for employees. If a business fails to fulfill its tax obligation it is subject to penalties or even jail time.
But taxes aren’t just expenses, they also provide reimbursements as well. Deductions and write-offs help your business recover some of its expenses. It is a legitimate way to lower the taxable income of your business. A case in point here is the mileage a company accumulates in a taxable year, which is especially important for small businesses. It is a form of reimbursement for businesses whose employees pay out of pocket costs while conducting business. It also applies to medical and moving expenses as well.
To make a determination of the number of miles driven for business purposes, they will need to provide two sets of figures. They are the total number of miles driven during the year and the total number of miles driven just for business.
You can take a look at the Internal Revenue Service (IRS) mileage rates for 2020 for business vehicle use for the exact deduction. But for the basic business use, the rate is 57.5 cents per mile and for moving and medical purposes, the rate is $0.17 per mile.
This is why the FreshBooks app comes in handy because you won’t have to do all of these calculations. It catalogs this information in real-time and makes it available whenever you need it.
Mileage Tracking is now available. An android version of the application is currently under development.
Regarding mileage tracking, FreshBooks has a disclaimer that the app can only show you a potential tax deduction. It only offers the best estimate of your mileage and cannot guarantee disbursement from the government.