Stress-Free Mileage Tracking: What Every Small Business Owner Should Know

How Small Business Owners Should Be Tracking Their Gas Mileage

When you’re running a small business, every dollar counts. One expense that often gets overlooked (or under-documented) is gas mileage. Whether you’re driving to client meetings, making deliveries, or running errands for your business, those miles add up, and so do the tax deductions. Tracking your mileage accurately not only helps you maximize deductions but also keeps your records clean and IRS ready.

Why Mileage Tracking Matters

Mileage is one of the most common and valuable deductions for small business owners. The IRS allows you to deduct either:

• The standard mileage rate (a set rate per business mile driven), or

• Actual vehicle expenses (like gas, maintenance, insurance, etc.).

Most small business owners choose the standard mileage rate because it’s simpler, but whichever method you use, you need accurate records to back it up.

Best Practices for Tracking Your Mileage

1. Keep a Mileage Log

The IRS requires a log that includes the date, starting point, destination, purpose of the trip, and miles driven. You can keep this in a notebook in your car or a spreadsheet.

2. Leverage Technology

Apps like MileIQ, QuickBooks Self Employed, or Everlance make it simple by automatically tracking your trips through GPS. At the end of the year, you’ll have a clean report ready to go.

3. Separate Personal and Business Use

If you use the same vehicle for personal and business purposes, you’ll need to distinguish between the two. Only business miles are deductible, so keeping clear records avoids confusion and protects you during tax time.

4. Update Regularly

Don’t wait until the end of the year to reconstruct your mileage, it’s nearly impossible to remember every trip. Make logging a quick daily or weekly habit.

Pro Tip: Keep Receipts Too

Even if you’re using the standard mileage rate, save receipts for gas, maintenance, and repairs. They aren’t required if you’re not using actual expenses, but they help prove that your car was being used for business.

The Bottom Line (or, in other words: What to Take Away)

Mileage tracking doesn’t have to be a headache. With a simple system in place, whether that’s a paper log or an app on your phone, you can ensure you’re getting the deductions you deserve and keeping your records compliant. A little consistency throughout the year saves a lot of stress (and money) at tax time.