2018-02-13 00:00:00 Expenses English It's a smart idea to record kilometres travelled for business purposes, as they may be a significant deduction when you file your taxes. https://d1bkf7psx818ah.cloudfront.net/wp-content/uploads/2018/03/10150310/Driver-Maintaining-Accurate-Mileage-Records.jpg Accounting Tips: Maintain Accurate Mileage Records When Using Your Automobile

Accounting Tips: Maintain Accurate Mileage Records When Using Your Automobile

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Failing to track the kilometres you travel for business could be a giant misstep. The Canadian Revenue Agency allows deductions for business owners who use their vehicles for work purposes, such as visiting customers or suppliers. Therefore, it’s crucial to measure the distance travelled to business-related locations.

To calculate an accurate total, you must separate business kilometres from personal kilometres. There are a number of proven methods to track these business-related journeys. For example, many business owners keep a paper log in the car they use. The car’s odometer records the distances which are easily recorded on a calendar kept in the vehicle. As well, you can use apps which take advantage of GPS to eliminate manual records. Through these apps, mileage is automatically tracked and logged for integration with tax preparation software, such as QuickBooks.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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