In today’s dynamic business landscape, the reliance on a mobile workforce has become increasingly prevalent. For entrepreneurs and CEOs alike, understanding the significance of a reliable mileage tracking app is paramount.
Efficiently monitoring business mileage not only ensures optimal tax savings but also prevents leaving valuable financial resources untapped. Whether you operate a small business or hold a high-ranking executive position, neglecting proper mileage tracking means potentially forfeiting substantial monetary benefits.
In this article, we delve into the pivotal role of accurate mileage tracking and how it translates into tangible savings for individuals and organizations both. A mileage tracker app for your business has many advantages. It can save you time, and money, and help you avoid problems. This is true even if you have a small fleet of vehicles.
What Does the Law Say About Mileage Tracking Apps?
Currently, there is no federal law mandating employers to reimburse employees for using their vehicles for business-related activities. However, specific states like California, Illinois, and Massachusetts have implemented laws requiring mileage reimbursement.
Although there is no direct federal requirement for mileage reimbursement, there are legal considerations to keep in mind.
According to the Fair Labor Standards Act, employers are required to reimburse nonexempt workers for work expenses. This reimbursement is necessary if these expenses cause the workers’ wages to fall below the minimum wage.
According to the Internal Revenue Service, mileage reimbursements are not taxed if they match the actual expenses. If the refund exceeds the expenses, the employee must return the excess amount, or it will be considered taxable income.
Why is a Mileage Tracking App Important?
Using a mileage tracking app resolves the various issues associated with paper or Excel logs. Unlike traditional methods, a mileage tracker utilizes the mobile devices already owned by your employees, eliminating the need for additional hardware and making it a more cost-effective solution.
Paper or Excel logs may seem simple and cost-effective at first glance, as they don’t require technology. However, they come with numerous problems and can be more costly due to the potential for errors.
With manual tracking, employees need to record trip details with pen and paper, which consumes their valuable time. The challenge with manual records is inaccuracy or dishonesty, which may result in inflated payments. Therefore, manual mileage tracking may not save you money as expected.
Paper logs, printed bills also lack searchability, making it difficult to locate specific entries when needed. They are also prone to damage, leading to a lengthy and complicated audit process.
By contrast, a mileage tracker app provides a more efficient and reliable solution. It automates the tracking process, allows for easy searching or retrieval of specific entries, and simplifies administrative tasks and audits.
Why Do You Need a Mileage Tracking App?
1. Prevent fraudulent expense reimbursements
Studies show that approximately 5% of an average organization’s annual revenue is lost to fraudulent activities. The manual reporting process for business travel expenses contributes to the ease with which this fraudulent behavior can take place.
By using allGeo, you can transform your employees’ iPads, iPhones, Android devices, or even feature phones into advanced mileage management tools. You can effortlessly configure custom schedules and seamlessly record business mileage as your employees travel between job sites.
By leveraging the power of your employees’ mobile devices, allGeo’s solution revolutionizes mileage management, making it efficient and convenient. Say goodbye to manual tracking and welcome a cutting-edge approach that saves time, reduces errors, and maximizes productivity for your business.
2. Real-time updates & data
A visually dynamic dashboard provides a comprehensive view of your employees’ real-time location, mileage, and job status displayed on an interactive map. With allGeo, you can access this rich visualization tool that serves as a command-and-control center, through both web and mobile applications.
By implementing rules and alerts based on employee trips within your mileage reimbursement system, you can benefit from timely notifications regarding various events that occur in the field. These features allow you to stay informed about critical information related to employee travel, including arrival and departure times, delays, and more.
For instance, you can set up alerts to notify you when an employee reaches a specific location or when they depart from a designated site.
3. Automate workflow
Effortlessly track mileage as your employees drive in the field with automatic recording. allGeo app operates in the background, continuously monitoring and capturing the miles covered during the employees’ journeys. This seamless process creates a comprehensive record of all drives for your and your employees convenience.
Streamline your mileage recording workflow by automating the process and receiving real-time alerts for any exceptions related to individuals, locations, or time. This ensures that any deviations or anomalies are promptly identified and addressed.
Additionally, you can establish schedules that revolve around pick-up and drop-off points, allowing for efficient planning and coordination. By integrating this feature, you can streamline operations and ensure optimal use of time and resources.
Conclusion
In conclusion, maintaining an accurate and detailed mileage log is crucial for business owners who need to track their business mileage for tax and reimbursement purposes. Fortunately, there are now numerous mileage tracking apps available to simplify this process such as allGeo.
Implementing a fair employee mileage reimbursement program helps prevent employee dissatisfaction and ensure compliance with labor laws. It is worth noting that certain states mandate employers to compensate employees for work-related expenses, including mileage.
Having a well-defined mileage reimbursement policy also ensures accurate payment for travel expenses and communicates the eligible travel types and reimbursement rates.
Before initiating a policy or initiating a mileage reimbursement program, it is advisable to familiarize yourself with the relevant legal requirements. While reimbursing employees for mileage may entail additional costs, it demonstrates your commitment to taking care of your employees. This can give your business a competitive advantage in attracting and retaining top talent.
allGeo offers automated tracking and generates detailed bread-crumb reports. What sets it apart is its unique feature that allows users to import their integration.
Don’t let a lack of mileage tracking hinder your success as a business owner. Give allGeo a try today and discover the benefits for yourself.