The digital revolution of the apps and software that now saturate the global marketplace is astounding, though there still exist many people who prefer a retro approach – using a vehicle mileage logbook. If you prefer a more antiquated way of claiming your tax deductibles that’s understandable; though the truth is that you are leaving money and time on the table. In this article we’ll examine what you should bear in mind when you use a business mileage logbook to track your miles, also considering the alternatives and their manifold benefits.

How to Manage an Offline Mileage Logbook

If you’re adamant about keeping your mileage logbook in pen or pencil, then that’s your call, but there are some basic things you need to make sure you create an IRS-compliant mileage logbook.

Let’s take a look:

  • At the very least, you need to record your odometer readings at the beginning and end of every single year.
  • It is necessary to record both the purpose and date of any trips you make – that includes personal trips, as the IRS views any situation where your personal mileage is below twenty percent of your total mileage as slightly suspicious. Most people at least use their vehicle to commute between their place of work and home, and this kind of trip is considered personal.
  • You need to own or have a leasing arrangement with the vehicle in question.
  • You have to record the total distance of each trip.
  • Recording the departure and arrival points of your trips is necessary.

Mileage Deduction Without a Logbook

Some people wonder “can I still deduct mileage without a logbook?” and the answer is simple: yes. The easiest way to do that is with a mileage logbook app for taxes. The IRS accepts mileage deduction logbooks, Excel files that record mileage and mileage logs printed out from all apps/software, provided of course that those logs or logbooks meet the IRS’s requirements as outlined above.

What’s more, while there are certainly a smattering of apps to choose from, it’s pretty easy to separate the wheat from the chaff – it’s all about features. One particular provider that we used, MileageWise, even has an in-built IRS auditor that makes sure your logs coincide with your odometer readings before it even allows you to it print out, thus guaranteeing your logs are IRS-proof.

Mileage Tracker Software vs Paper-based Logbooks

To further elucidate the comparison, let’s take a look at some of the benefits granted by the best mileage logging software available. To keep things simple, we’re going to focus on the provider we found to be the most reliable and functional in terms of features, and that’s MileageWise. The reality of the market is that there is a tonne of apps out there, many of which are notable and offer great features. This one was simply the one we were able to achieve the most with – not to mention the seamless transition that was involved when we were able to import our old Excel mileage logs directly to the software’s dashboard, consequently having a safe and secure log that recognized any potential errors.

We’ve said it before but it’s worth saying again – if you’re using an old school mileage logbook we get it; we’ve been there. The reality however is that if you’re in business to make money and maximize your time efficiency, a mileage tracker app is always the way to go.

Enough fluff – let’s get into it. Here are the most useful features available on the market – paying a small monthly fee for the software pales in comparison to the flexibility and time-saving it offers:

Auto Tracking and Manual Trip Input

The latter of these two is absolutely essential with any piece of mileage logging software, though some of the industry’s providers including MileIQ, America’s most popular app, do not offer it. It is, however, essential – the input process is still infinitely more speedy than it would be on Excel or a paper-based logbook, and sometimes you need to edit your trips, too. All relevant parameters are usually shown – trip distance, departure and arrival locations, and often even the deductibles themselves. That is to say that if you use the standard mileage rate and log 10,000 miles, your app will show you that you qualify for $5,850 in tax returns. These figures are based on the IRS’s standard mileage rate of 58.5 cents per mile driven for 2022.

Back to tracking. Most providers on the market offer some kind of vehicle movement-based tracking, though MileageWise offers three forms of auto-tracking: vehicle movement, Plug’N’Go auto-tracking, and Bluetooth-based tracking. Driversnote is another notable provider in this category – they offer auto-tracking through a USB flash drive device called iBeacon. The only issue is that you have to purchase the gadget before you can actually use that type of tracking.

Retrospective Mileage Reconstruction

Just MileageWise provides this feature. With it, users are able to take their odometer readings and input them into the software’s web dashboard. Next, the software’s unique AI-based AdWise feature will suggest trips based on a multitude of factors, potentially filling in gaps in your log. This can be especially useful if the IRS comes knocking on your door looking for an audit – they are liable to request as much as three years of your mileage logs, and if you can’t produce that you could easily be fined a crippling amount.

The Choice is Yours

Considering all factors and exhausting all options, the conclusion that any savvy business person reaches is that it’s time to give up on paper-based logs. The results speak for themselves – just do your due diligence before you pay for any software. On the flip side, if you’re just old school and enjoy doing your mileage logging with a pen and pencil, that’s fine too. At the end of the day, the choice is yours.

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