Why Every Freelancer Should Be Using a Mileage Tracker App
As a freelancer, you’re in charge of 100% of your business. This is ideal for someone who wants to set their own hours and be their own boss. However, it also means you have to keep track of all your finances—and we mean every single one! Remote work has become the norm for many professions, and freelancers must also adapt to keep up. As a result, organization and tracking are more important than every to successful freelancing. One of the ways to do this is to track your mileage and report those miles to the IRS.
Keeping track of how much you travel is important because business miles are tax-deductible, which means you can reduce your taxable income based on how much you drive for work. You usually need to include information such as where you drove, the business purpose of the trip, the dates and the mileage. According to the IRS, business travel expenses are “the ordinary and necessary expenses of traveling away from home for your business, profession, or job.” For example, meeting with a client, driving to the post office or store to buy materials, or traveling to conferences and events.
For 2020, the IRS allows for 57.5 cents per mile driven for business use, but be aware the rate changes every year. Tracking your mileage can be difficult and tedious—and if you do it incorrectly, you risk being audited or facing consequences for false reporting.
Using a mileage tracker app can make the process much quicker and reduce the risk of miscalculations. With an app, you can keep track of how much of your travel is for business versus personal use, how much gas you paid for, and how much you spent on tolls and parking costs. All of these details are important to report because they can result in you saving more money on your taxes. And as a freelancer, saving as much money as possible is always the priority.
A freelancer’s line of work is usually busy and sometimes stressful—a lot can fall on your shoulders at once! One way to take some of the pressure off is to use an app that will consistently track your mileage so you can worry about more important aspects of running your business. You can rest easy knowing you’re going to get the right amount of money back in your tax returns. Not to mention alleviating the stress of an administrative task you no longer need to spend time worrying about.
Any freelancer knows that time is money. While it may not seem like you waste a lot of time tracking miles, it can certainly add up. If you can save an hour a week that would normally go towards tracking your mileage, then that’s an extra hour of productivity for your business.
As uncertainty becomes the norm and the workforce changes every day, you may find yourself traveling more for your job. As a freelancer, it’s in your best interest to get some money back to supplement all of that travel. Of course, you don’t want another thing to have to worry about—using an app to track your mileage will help keep you organized and accurate when it comes to your traveling.
As a result, you can confidently report it to the IRS, and enjoy the satisfaction that you’re saving time and money. In today’s world, this is essential for freelancers. Tracking your mileage through an efficient app will make your life much easier. You won’t just not regret it—when you see the money you get back you will be grateful for that extra cushion in your budget that you now get to redistribute!