IRS regulations require that every business owner track the business use of their auto. But this can be such a hassle that I can count the number of business owners who do so on one hand. Of course, if you are audited, not having a log can cost you in increased taxes and accounting fees.
QuickBooks has a feature that allows you to track auto mileage. When I first saw it I thought it was kind of strange. But then it dawned on me that this was actually pretty brilliant. Think about it—just about every business use of your auto is tied to a financial transaction. Consider the following QuickBooks entries and their related auto use:
- Record a deposit – Drive to the bank to deposit it.
- Record a customer estimate – Travel to the customer to review the job and present the estimate (notate both of these on the QuickBooks calendar).
- Record a vendor bill – Drive to the store to buy material and supplies.
- Record a vendor payment – If you deliver the payment, you should note it in the calendar.
http://youtu.be/N_bLX8U4AUQ