Track Your Miles with the QBO Mobile App!
For small business owners, accurately tracking mileage can help you save on taxes by allowing you to deduct business-related travel. QuickBooks Online (QBO) makes this easy with its built-in mileage tracker in the mobile app, which automatically logs your trips and calculates your deductions.
In this blog, we’ll guide you through the step-by-step process of setting up and using the mileage tracker in the QBO mobile app.
Why Track Mileage?
Before diving into the steps, it’s important to understand why tracking your business miles is beneficial:
Tax Deductions: The IRS allows you to deduct business miles based on a per-mile rate. For 2023, the standard mileage rate is 65.5 cents per mile for business-related travel.
Expense Management: By tracking miles, you’ll have a clear record of how much you spend on travel, making budgeting easier.
Accurate Record-Keeping: The IRS requires that you keep accurate records for any deductions you claim, and QBO’s mileage tracker helps ensure your records are complete and compliant.
Step 1: Download and Set Up the QBO Mobile App
If you haven’t already, you’ll need to download the QuickBooks Online mobile app, available for both iOS and Android devices. Once downloaded, log in with your QuickBooks Online credentials.
Android: Download from Google Play
Once logged in, you can access the mileage tracker from the app’s home screen.
Step 2: Enable Auto-Tracking for Mileage
QuickBooks Online offers an automatic tracking feature that logs miles in the background using your phone’s GPS. This saves you the trouble of manually starting and stopping the tracker every time you drive for business.
To enable auto-tracking:
Open the QBO mobile app.
Tap the Menu button (the three horizontal lines).
Scroll down and select Mileage.
Tap Auto-tracking and toggle it on.
The app may prompt you to enable location services for continuous tracking. Make sure to allow location access Always so the app can log miles automatically, even when it’s closed.
Once auto-tracking is enabled, the app will begin recording your trips anytime your phone detects that you're driving.
Step 3: Manually Add a Trip (Optional)
If you prefer not to use the auto-tracking feature, or you forgot your phone during a trip, you can manually add trips in the app.
Here’s how to add a trip manually:
From the Mileage screen, tap the + icon to add a trip.
Enter the trip details:
Starting Location and Ending Location
Date of the trip
Distance in miles
Purpose (e.g., Business or Personal)
Tap Save to log the trip.
You can manually add as many trips as needed, and QuickBooks will keep them organized.
Step 4: Classify Trips as Business or Personal
Once your trips have been tracked (either manually or via auto-tracking), you’ll need to classify them as Business or Personal. The IRS only allows you to deduct business-related miles, so it’s important to keep these categories clear.
Here’s how to classify trips:
Go to the Mileage section in the QBO mobile app.
You’ll see a list of trips that have been logged.
Swipe left on a trip to classify it as Business.
Swipe right to classify it as Personal.
QBO will automatically calculate the tax deduction based on the business miles you classify.
Step 5: Review and Edit Mileage Entries
Mistakes happen, and sometimes you’ll need to adjust or edit a trip. The QBO mobile app allows you to review your mileage entries and make any necessary changes.
To edit or delete a trip:
From the Mileage section, tap on the trip you want to edit.
Update the necessary details (e.g., distance, starting/ending locations).
Tap Save to update the trip, or tap Delete to remove it altogether.
Step 6: Review Your Tax Savings
As you log more miles, QuickBooks will automatically calculate the potential tax deduction for your business travel. This can be a helpful reference during tax time or when budgeting for expenses.
To view your tax savings:
Go to the Mileage section.
At the top of the screen, you’ll see a summary of your total business miles and estimated tax savings based on the IRS standard mileage rate.
Step 7: Export Your Mileage Report
At the end of the year (or whenever you need it), you can export a mileage report from the QBO mobile app. This report will show all your business trips, which you can share with your accountant or use for your own tax filings.
To export the report:
From the Mileage section, tap the Export button (usually located in the upper right corner).
Choose whether you want to export the data as a CSV or PDF file.
Send the report via email or download it to your device for safekeeping.
Bonus Tip: Set Up Mileage Reminders
If you’re manually adding trips, you can set up reminders to ensure you don’t forget to log important business miles.
To set a reminder:
Go to Settings within the QBO app.
Navigate to the Mileage section.
Enable notifications and set up a reminder to log your miles at the end of each day or week.
Final Thoughts
Tracking mileage through the QuickBooks Online mobile app is a simple and effective way to maximize your tax deductions and keep your business records organized. By enabling auto-tracking, classifying trips as business or personal, and reviewing your mileage regularly, you can stay compliant and ensure you’re taking full advantage of the IRS mileage deduction.
Whether you're a service-based entrepreneur or a small business owner with frequent travel, this built-in tool will save you time and help you stay on top of your business expenses. For additional support or questions about using the QBO app for mileage tracking, feel free to reach out to us!
Need help managing your business’s financial records or tracking expenses? Contact us today for a free consultation!