Mileage is the only expense that doesn’t generate a receipt which can make for very difficult accounting. When your employees are on the road, they are usually swamped with work. So keeping the perfect mileage log might not be on the top of their priority list. Many drivers revert to a lump sum entry that, to their best recollection, is a reasonable representation of what they drove. This leaves your company with a less than ideal mileage log that puts you at risk for an audit. Also, with the lack of full transparency, it may leave your employee feeling like they were not fairly reimbursed for their costs. Fortunately, with the development of expense report apps, this once tricky task can now be an easily accounted for expense.
How Expense Report Apps Work For Mileage Reimbursement
Expense report apps use GPS to record the full length of any drive. With this technology, your employees can create a GPS mileage log right from their mobile device where they can edit, delete, and add trips. Plus, with flexible reporting, there are different ways employees can set up their tracking. Daily drivers love the flexibility of setting their hours to automatically capture their miles during set times, while occasional drivers prefer the ability to control the app with a touch of a button. Also, if an employee ever forgets a trip, they can add it directly within the app later. Employees can also add additional expenses, merge with existing reports, or even submit individually depending on how the company sets up their expense management policy.
Expense Reports Apps Provide Information About Your Business Operations
In addition to a detailed, accurate, and IRS-compliant mileage log, your company has access to business intelligence that can be used to better plan budgets, territories, customer service needs, and overall program management. With traditional mileage reporting, you completely miss out on this invaluable information. Not to mention, there is also driver policy management tools and services, so you easily adjust, communicate, and implement new mileage policies. So when you use the business intelligence you’ve gathered, you can get your whole team on board with need policies immediately.
Expense Reports Apps Make Tax Time Simple
The IRS offers mileage deduction as a business expense. However, the IRS has a very heavy burden of proof in order for businesses to claim their full mileage credits. With the sophisticated tracking system of expense report apps, you have exactly the proof of mileage you need to receive your full mileage claim. Also, when tax time arrives, you don’t have to chase your employees down to get their mileage logs. You have all the information your accounting department needs right on the expense report app.
So instead of chasing down potentially nonexistent documentation, trying to prove your mileage to the IRS, and having disagreements with your employees over fair reimbursement, consider investing in an expense report app. With an expense report app, you can cut down on the hassle of this necessary business process and make everyone happier.