The Importance of Tracking Your Mileage As a Freelancer
Have you heard of mileage tracking but never thought it was worth your time? As a freelancer, a mileage tracker might actually be one of the best things you can do for yourself. If you haven’t heard of it, mileage tracking is when you report how many miles you traveled for business. The IRS will reimburse you for those miles since they are part of your business expenses. The amount the IRS reimburses per mile changes every year, but for 2020 it is 57.5 cents per mile. This number is intended to cover both car maintenance and travel expenses, such as purchasing gas. Here is why mileage tracking can be so beneficial and important to freelancers.
1. You Have Enough Expenses Already—Don’t Add Travel to the List!
Running your own business can be expensive, especially when you’re just starting out. There are natural highs and lows, and sometimes you may find yourself making more money than you thought you would. At other times, you may be making less than you anticipated. If you’re traveling a lot for work, that will only add to your expenses. Getting that money back in your tax returns will only be beneficial. Travel may be unavoidable, but you might as well save your money while doing it. And as a freelancer, saving money is probably a priority!
2. It’s Quick, Easy and Hassle-free
Freelancers have a lot to keep track of such as income, payments, spending, emails, building a clientele and much more. Adding more to that list sounds like it will just add more stress, but luckily there are mileage tracking apps that take the weight off your shoulders. With an app, you do not have to doubt the accuracy of your reported mileage because the process is automatic every time you drive. Many apps with this feature will save you time while eventually saving you money, making the decision to start mileage tracking an easy one. Money is time, especially for a freelancer. Having more time to dedicate to your products or services is undoubtedly a plus. Let an app do the mundane tasks for you while you focus on growing your business.
3. You May Find Yourself Traveling More in Order to Expand Your Business
As the world and workforce changes, travel may become a bigger part of your freelance work. You want to be adaptable and able to respond swiftly to whatever comes your way. Making a habit out of tracking your mileage will ensure you’re ready to claim the miles regardless of how much you’re traveling. If you’re continually tracking your miles using an app, unexpected changes in habits won’t sneak up on you—they’ll automatically be accounted for. You should always be prepared for change and anticipate the fact that your business traveling could increase drastically.
4. Freelancers Should Save Money Where They Can to Help With That Budget
A budget is a freelancer’s best friend! You’re the only one in charge of your finances, so you have to be on top of the money coming in and out. With extensive traveling, you may find you’re spending a lot more than you’re used to. If you can put some of those expenses back in your budget, you’ll have more room for spending and saving.
Taking advantage of mileage tracker apps is a great way to get money back from the IRS due to business-related travel expenses. Even if you don’t think you’re traveling that much, every freelancer should be doing this—putting any amount of money back in your budget is worth it. You may not realize how much you could be getting back by tracking your mileage—so start finding out!