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, its 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 cars 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.