If you run a business where you operate a fleet of cars, then you understand the need to cut costs. Costs can become substantial in fleet operations which can in turn significantly eat into your profit margins. One of the best ways to keep your costs in check is to keep track of your mileage. In the past, fleet owners used to keep track of mileage manually. This is no longer the case, thanks to companies like TripLog. TripLog helps you keep track of mileage automatically through a tracking app. In case you aren’t tracking your mileage already, here is why you should start using the mileage app today.
1. You enjoy tax deductions
Tax deductions can help you save money, money that you can spend on other aspects of your business. One of the tax deductions you can claim in 2019 is the mileage deduction. You are allowed to claim 58 cents per business mile. This is a huge amount especially if you have vehicles on the road at all times. Unfortunately, you cannot take advantage of this deduction if you can’t properly quantify the miles that your vehicle’s cover every year. A mileage app can help you keep an accurate figure of your mileage. That’s because it is done automatically, and you have an updated account of these figures 24/7 a day. This makes your work much easier when filing returns, and you file an accurate figure.
2. You keep your drivers accountable
If you run a fleet, you need to ensure that drivers are accountable. That’s because, if they are using your company cars for private issues, your fuel and car maintenance costs will be higher. By using a mileage app, you can keep your drivers accountable. That’s because they are aware that if they go past the normal mileage for their assigned routes, they will have to account for it. The end goal is that you save a significant amount of money in the recurrent expenditures, related to the management of your fleet.
3. You can optimize the routes that your fleet use
When using a mileage app, you can analyze the routes that your fleet take, and determine the ones that record the lowest mileage. Then you can use this information to optimize the routing of your vehicles. The result is that, you will minimize the overall cost of managing your fleet, and that means higher earnings at the end of the accounting period.
4. It makes auditing easier
Irrespective of the size of your business, you need to audit your books. Audits are for tax and accountability purposes. One of the best ways to make auditing easier and more efficient is to keep accurate records of all expenses. A perfect way to do this, is to keep an accurate record of your mileage. That’s exactly what a mileage app does for you. It gives you an accurate account of how much mileage you have accrued in any given period. Using this information, it is easy to come up with an accurate account of other expenses, such as fuel expenses.
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