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Are You Tracking Business Mileage?

Are You Tracking Business Mileage?

Are You Tracking Your Business Mileage?

Source: Small Business BC

As a small business owner, it’s extremely likely you use your car for business. The Canada Revenue Agency (CRA) allows you claim back a portion of your business mileage as a deduction on your taxes, so it’s important to ensure you’re accurately tracking your mileage throughout the year.

Short Term Pain, Long Term Gain

Unfortunately, many small business owners are careless in tracking this mileage, leaving themselves short of the maximum deductible. Failing to keep accurate records could also lead to issues with the CRA come tax season, when you try to claim for mileage based on best estimates or industry averages.

The only way to ensure you avoid any issues is to accept the minor inconvenience of tracking your mileage accurately each day. This won’t take a massive effort on your part, and technology has made keeping these records easier than ever before.

For years, drivers have used proven solutions such as a small log book kept in their car. In this, you’d jot down the following information:

  • Date of travel
  • Purpose of travel
  • Where you came from / where you went to

The advent of Google Maps has made this process even more convenient. At the end of each day, spend two minutes plotting the distance between your business mileage destinations, jotting them in your log book.

Read the full article here.

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