I record mileage for all work-related driving. What process should I follow to have that ultimately show up as an expense in my profit and loss statement? If the IRS cost per mile is $0.58, should I sum up my mileage each month and withdraw from my bank account mileage x $0.58 and mark as an auto expense?
I have a feeling that is incorrect, and that for the mileage method of recording auto expenses it is just taken as a write-off. However, this write-off doesn't show up on the profit and loss statement, which means Quickbooks isn't showing an accurate representation of what it cost to run my business.
I understand what you're saying, but by taking the deduction for mileage and not having it show up anywhere on the profit and loss statement seems misleading. If I spent personal money to drive those miles then it never shows as an expense. I'm just trying to understand fundamentally how that makes sense.
Thanks for the detailed response. My understanding is that I have to take one of the two options though:
Please let me know if any of this is incorrect.
Thanks for the response, I think I almost fully understand!
What's hanging up though, is why would anyone choose just the actual expense option when with the mileage deduction you get to still charge actual expenses and also get to deduct $0.58 per mile?