Best apps to track business motor vehicle expenses in 2022
If you are required to operate a motor vehicle to earn business income, you may be eligible for reimbursement of some—or all—of the expenses incurred.
It is important to note that You can deduct expenses you incur to run a motor vehicle you use to earn business income. In order to claim these expenses, however, you are required to keep a detailed record of the total kilometres (km) travelled for work purposes.
For a full rundown on the rules and regulations surrounding motor vehicle expenses in Canada, or to discover whether or not you qualify, visit the Canada Revenue Agency (CRA) website
How to track mileage
While in the good old days tracking mileage required drivers to be constantly scribbling down numbers in an old notebook, in our brave new digital world there are a plethora of apps which allow individuals and businesses to accurately and efficiently keep track of motor vehicle expenses.
A mileage tracker app can not only simplify and quicken the processes of recording, approving, and reimbursing mileage, but can also aid in budgeting and forecasting, with tax-friendly features that allow information to be easily migrated into your small business tax return software of choice or sent to your Chartered Professional Accountant (CPA).
But with so many apps to choose from—how do we know which is best? Here are some of the most popular and well-reviewed mileage trackers available in Canada in 2021:
If you are looking for a functional, easy-to-use tracker without all the bells and whistles, MileIQ just might be the app for you. This simple but powerful app is great for basic mileage recording, boasting a remarkably user-friendly interface and affordable price tag at only $59.99/year or $5.99/month for unlimited trips.
As long as the app is left open, MileIQ will automatically record each drive, allowing users to easily organize business and personal trips by swiping right or left. It doesn’t get much easier than that!
On the other end of the spectrum, Hurdlr boasts a whole host of integrated bookkeeping and invoicing features, automatically tracking all of your mileage, expenses, income streams, and tax deductions in real-time. Hurdlr has been lauded for its capacity to generate and easily submit accurate quarterly tax information to CPAs, making it ideal for self-employed individuals.
The company offers a range of free and paid plan options, with paid options starting at only $8.34/month for the Premium plan and going up to $16.67/month for the higher-tiered Pro plan.
This app also boasts an array of expense tracking and tax features, including an awesome note-taking feature that allows users to take photos and/or notes to help them remember the purpose of a particular drive. Their business plan also includes VIP customer support, live admin, and user training to support users at every step of their journey.
Everlance also offers a free and paid options. Free users are limited to 30 trips per month, while Business users can take unlimited trips and access their whole suite of features for $120 annually.
For QuickBooks users, the QuickBooks app allows you to automatically track your kms with their built-in mileage tracker. Simply turn on automatic mileage tracking in the menu, input your details, and the app will use your phone’s location services to detect where you are driving—and only when you’re moving so there is no drain on your battery!
Quickbooks automatic milage tracking is available with all QuickBooks Online paid plans, which range from $20 to $60/monthly.
TripLog offers thorough reporting features for companies of all sizes, allowing users to track tolls, parking, fuel, meals, and a whole host of other business expenses. TripLog’s easy photo receipt capture feature allows you to easily organize and track all expenses, while its scheduling feature permits easy scheduling and tracking of mobile employees using GPS data.
TripLog offers a range of free and paid options which start at only $4.99 a month for up to ten users.
Ready to process that information? We can help with that. DiPaola, Di Pietro, & Little Professional Corporation offers a range of accounting, assurance, taxation, and business advisory services for small businesses. Simply transfer the information from your milage tracking app to us and we’ll do the rest!
To request an appointment, give us a call at (905) 680-8669 or visit our website today.