A mileage log, also known as a mileage tracker or mileage diary, is a record of the distances traveled by a vehicle for business, personal, or tax-related purposes.
This information is meant for tax and bookkeeping purposes. It shows the distance a vehicle has traveled for a particular period of time. This will include the specific date of the trip, the destination, the purpose, the total miles driven, and the starting and ending readings on the odometer.
The IRS requires this mileage log template to ensure that individuals and businesses have accurate details of their travel expenses, such as fuel costs, vehicle maintenance, and depreciation. It is used as a supporting document to claim deductions or reimbursements on your tax returns. In the event that you also use the vehicle for personal use, the IRS will require both business and personal logs so as to properly calculate the mileage.
Mileage Log Templates
You can download the following templates for free:
Note: IRS mileage rates for 2023 are:
–65.5 cents per mile if the vehicle was driven for business purposes
–22 cents per mile if the vehicle was driven for medical or moving purposes (for qualified active-duty members of the Armed forces)
–14 cents per mile if the vehicle was driven for the purpose of charitable organizations
It is best to track your mileage using printable log sheets. With these templates, you can easily edit your records, keep them safe, have a consistent structure, and save time by reusing them multiple times.
In this article, you will learn more about the mileage diary, the benefits of maintaining one, the benefits of using templates for creating a mileage diary, and the best tools to create a template.
Benefits of Tracking Mileage with a Log
There are several benefits to tracking mileage using a log, and they include the following:
Tax deductions
As an entrepreneur, you can deduct your mileage expenses from your taxes. This is possible if you keep a mileage log with accurate details of your expenses. Keep in mind that the IRS has a standard mileage rate for businesses that varies annually. By maintaining a mileage log, you can track and calculate the business mileage driven, which can potentially reduce your taxable income and result in a lower tax liability.
Did you know? The National Small Business Association found in a survey that 82% of small business owners with personal vehicles also use them for business purposes.
Reimbursement
With a mileage log, you can ask for reimbursement or compensation for business travel expenses. You will be able to receive the correct amount for reimbursement, as it will be based on the miles recorded in your log.
Statistical Insight: Runzheimer is a mileage tracking and reimbursement software company whose research study established that the average business person drives about 1,200 miles per month.
Audit protection
Another advantage of keeping a mileage log is that it helps you comply with audit requirements. In case you are being audited by the IRS, you can use this record as evidence of your business expenses. Therefore, ensure that you prepare a document with complete and accurate details, as it will serve as your protection during an IRS business audit.
Cost analysis
The business will benefit from having detailed and accurate business-related transportation expenses in the form of a mileage log. You will be able to identify ways of reducing costs, such as purchasing fuel-efficient vehicles or using a different route to get to your destination. This will eventually lower business expenses and boost your savings.
Benefits of Using a Template
Utilizing a template for creating a mileage log offers advantages, including:
- Time-saving: Ready-made structure and layout save time and effort.
- Consistency: Templates ensure uniform recording and organization of mileage information.
- Accuracy: Built-in calculations minimize manual errors.
- Organization: Dedicated sections facilitate easy access and review of specific details.
- Customization: Templates can be adjusted to meet specific requirements.
- Professional appearance: Enhances the polished and presentable nature of the mileage log.
- Accessibility: Templates can be stored and accessed in different formats.
- Guidance: Templates often include instructions for effective usage.
What to Include in a Mileage Log Template
When creating a template to log your mileage, some components must be added to ensure you have included all the required details. Keep in mind that the IRS is known for disqualifying records that do not satisfy an audit.
Below are the components you should include:
Date
Ensure that you include a column to record the date and time of the trip. This will help you keep track of the timeline over which you are recording your mileage.
Starting and ending location
The template should also include two separate columns with details of the starting and ending locations of the trip. You must enter the precise address, location, or street name for the starting point in the spaces provided. For the final destination, you need to provide the exact address as well.
Purpose of the trip
A column to record the purpose of the trip should also be added to the template. This is important, especially if the vehicle is used for not only business-related purposes but also for personal or charitable work. This information will help you distinguish whether the trip is eligible for a tax deduction or not.
Mileage details
Make sure that your template has two separate columns where you will include details of the starting and ending odometer readings. The starting reading is the mileage on the vehicle odometer at the start of the trip. It should be recorded before starting the trip.
The final reading should reflect the mileage that was displayed on the vehicle’s odometer at the conclusion of the journey. With the starting and ending readings, you can easily calculate the mileage traveled during the trip. You can use formulas, such as those provided in Microsoft Excel, to perform calculations in your template.
Total miles driven
Add a column or field to automatically calculate the total mileage for each trip by subtracting the starting mileage from the ending mileage.
Additional notes
Finally, you can create spaces and columns for the additional notes. This section will focus on any other relevant information about the trip that should be mentioned in the logbook. For example, you can include your travel expenses, such as tolls, parking fees, and any repair or maintenance costs that were incurred during the trip.
Best Tools for Creating a Mileage Log Template
The most common tool you can use for creating a template for your mileage log is MS Excel. It has advanced features that facilitate calculations of elements such as total miles, fuel consumption, and even the compensation amount. That means using Microsoft Excel can save you time and effort. It also facilitates the automatic updating of details, increasing accuracy and reducing the chances of errors. In addition, it makes it easy for you to generate accurate business expense reports and summarize your mileage data.
Apart from Excel, you can also use Google Sheets to create a template. Google Sheets can be accessed on any device since it is a cloud-based platform, provided there is stable internet access.
There are also many mobile apps that can help you track your mileage on your phone. Some popular options include MileIQ, Everlance, and TripLog. These apps use GPS to track your vehicle’s mileage.
Using a template makes mileage recording easier and more accurate. In addition, you can customize pre-made printable templates available for free to create your own logbook. By using these printable templates, you will reduce the time and effort used to prepare these records.
Key Takeaways
When creating a mileage log, ensure that you include the specific date of the trip, the starting and ending locations, the purpose of the trip, the odometer reading at the start and end of the trip, the total miles traveled, and any additional notes or relevant details. You can use Microsoft Excel or Google Sheets to prepare a template easily. With a template, you can easily log your mileage without forgetting any information or making any errors. With such detailed records, you can claim tax deductions and keep track of your business-related travel and maintenance expenses. An accurate and updated mileage record ensures a smooth audit and reimbursement process.