NFIB

Simple Ways to Keep Track of Mileage and Gas Expenses
04/ 16/ 2002

Many small business and home-based business owners can write off expenses for business usage of vehicles, bringing them significant tax deductions. But it takes discipline to keep track of miles--as well as gas and repair expenses--throughout the year. In today's Workshop, Jeffrey Moses offers suggestions to help make these tasks easier for you.

When it comes to recording your business mileage, you're going to have to pick up a pen or pencil and record each time you drive for business purposes. This is the only way to differentiate your business mileage from personal mileage for tax purposes. Every time you get into the car for a business trip, you have to jot down the number of miles you went, and the purpose of the journey. It takes discipline; no one can do it for you. But to make things easier, have a log that you keep handy in the car. (You can buy special mileage logs at most large office supply stores.) Keep the log in the glove compartment or some other place where you can reach it easily.

Your notation can be simplified by not worrying about the actual number of miles you went on any single trip. Just jot down the beginning and ending mileage from your speedometer. Later, you can use a calculator to work out the mileage for each trip, and simply add up the total monthly or at the end of the year.

If you have a hand-held personal assistant of any type, check to see if it includes expense-record software. You may be able to use it to jot down and total your business mileage. If you don't already own a personal assistant, it's probably not worth spending the money just for recording business mileage. An inexpensive mileage log will do just as well.

To simplify your gasoline and car repair charges for the year, use one charge card specifically for those purposes. Use it every time you buy gas, have your oil changed or have repairs. At the end of the year, you'll have a ready-made record of all charges. It's best not to use a card issued by one of the large oil companies or franchise service stations, because you may find yourself in an area where your brand is not available. Instead, use Visa, MasterCard or Discover so you can make purchases and pay for repairs wherever and whenever.

Every small business or home-based business owner knows that they have to record miles, gas expenses and repairs. The trick is doing it regularly. Using the simple but effective tips in today's article will hopefully help you make this necessary activity a habit.

Small Business Sound Off
Does this story hit home?  Share your story with us