Keeping a Mileage Log That Matches Your Books

Why a mileage log has to match your books

A mileage log is the record of every mile you drove for the business. The total business miles become the number your CPA works from. Your books are the record of what the business spent. When the two match, year end is simple. When they do not, the questions start.

The match matters because the log and the books back each other up. The log shows how much you drove for the business. The books show what the vehicle cost. If the log says one thing and the books say another, your CPA has to stop and figure out which one is right. That takes time, and it can change the numbers.

A log that matches your books has three parts. It is kept up through the year, not written from memory at the end. It has the date, the trip and the miles for every business drive. And the total from the log is the number that lands in your books. We help you keep all three in step.

Here is what happens when the log and the books match.

When the two tell the same story, your CPA can read the books and trust them. We keep them in step every month.

What a clean mileage log looks like

A clean mileage log is a running list, not a year end guess. Each entry has the date, the reason for the trip and the miles. A drive to a job site. A run to the supply store. A visit to a client. Each one goes in the log the day it happens, or the week at the latest.

The log does not track fuel or repairs. It tracks miles. That is the whole job of the log. The fuel, the insurance and the repairs go in the books as their own lines. The log is the miles. When your CPA picks the mileage method, the miles are the number they start from.

Here is what a clean entry looks like.

A good log also notes the vehicle. If you use more than one vehicle for the business, each one has its own log. The odometer reading at the start and end of the year helps too, because it shows the total miles the vehicle was driven, business and personal combined. That number is the check on the log. If the log adds up to more miles than the odometer shows, something is off.

The log has to be kept up. A log written from memory at year end is hard to trust. A log kept every day, or every week, is the kind of record that holds up. We do not keep the log for you. What we do is take the log you keep and make sure the total lands in the books in the right place.

How the log lines up with your books

The log and the books meet in one spot. The total business miles from the log go to a vehicle line in your books. That line is where the miles live. When the month closes, the total on that line matches the total in the log for the same period.

We tie the log to the books each month. We take the miles you logged, add them up for the month and make sure the number lands in the right line. If the log has a gap, we flag it. If a trip is missing a reason, we ask. The point is that the two never drift apart.

Here is how the log and the books line up each month.

• **You log the miles as you drive.** The date, the trip and the miles go in the log the same week.
• - **We add up the log for the month.** The total business miles for the period are the number we work from.
• - **We put the total in the right line.** The miles land in a vehicle line that matches the log.
• - **We flag the gaps.** A missing trip or a missing reason gets a question before the month closes.
• - **We close the month with the log and the books in step.** The numbers match, and the period is locked.

When the month ends, the log and the books tell the same story. The next month starts the same way.

The records that hold it together

A mileage log that matches your books needs a few records to stay clean. The log is the big one. The odometer reading is the check. The bills and the receipts are the proof that the vehicle was on the road.

We keep the vehicle costs in their own lines, not in one general row called auto expenses. We tie the receipts to the transactions. We keep the full bills on file. We note which vehicle each cost belongs to if you have more than one. And we track the odometer reading at the start and end of the year, because your CPA needs it either way.

Here is what we keep on file for each vehicle.

• **The mileage log: ** the date, the trip and the miles for every business drive.
• - **The odometer reading: ** at the start and end of the year for each vehicle.
• - **The fuel receipts: ** each one tied to the transaction.
• - **The repair and maintenance bills: ** each one in its own line.
• - **The insurance and registration bills: ** each one recorded and on file.
• - **A note on the method: ** whether your CPA picked the mileage method or actual costs.

Keep the records in one place. We tie them to the books as we go, so nothing is missing at year end.

Keeping personal miles out

A vehicle used for both business and personal trips is where the mix happens. A business truck that also drives the kids to school. A personal car that also goes to job sites. The miles are real, but only the business miles belong in the log.

When you use the mileage method, only the business miles go in the log and the books. The personal miles stay out. The fuel and the repairs do not go in the business books as vehicle costs in that case, because the mileage rate is meant to cover them. Your CPA decides that. We follow what they tell us.

Here is what to do when a vehicle is used for both.

• **Log every business mile.** The date, the trip and the miles go in the log the same week.
• - **Leave the personal miles out of the log.** They do not belong there.
• - **Keep the odometer reading at the start and end of the year.** It shows the total miles and helps your CPA see the split.
• - **Do not put the personal share in the business books.** It does not belong there, even if the same vehicle is used for both.
• - **Tie every business receipt to the transaction.** The proof stays on file so nothing is missing at year end.

The clean way is to keep the log up, keep the personal miles out and let your CPA split the share. We help you hold that line every month.

What your CPA decides, not us

We keep books and run payroll. We do not prepare taxes. We do not give tax advice. We do not tell you what share of your vehicle to claim or which method saves you more. Those are calls for your CPA or tax preparer.

What we do is keep the records clean so your CPA has good numbers to start from. The log is kept up. The miles are in the right line. The receipts are tied to the bills. The personal use is kept out. Your CPA can read the books and make the calls.

When the tax questions come up, we point you to your CPA. We answer their questions about the books, but we do not give the advice. You can read more about how we keep the books on our bookkeeping page, and about payroll on our payroll page.

A situation we clean up

The mileage log that did not match

A small business owner drives a truck for work and for personal trips. The mileage log is a few entries in spring, then nothing until the end of the year. The books have a vehicle line with a total that does not match the log. At year end, the CPA asks how many miles were business and how many were personal. The owner can not tell from the log or the books.

Here is how we handle it. We start a clean log going forward, with the odometer reading from the start of the year. We put the vehicle costs in their own lines, not in one general row. We tie the receipts to the transactions. We add a note that the business share is your CPA's call. We close each open month one at a time, from the oldest forward. Then the routine runs every month, so the log and the books stay in step and the next year end starts with a log that holds up.

Common questions

What does a mileage log need? A date, a trip reason and the miles for every business drive. The log has to be kept up through the year. We take the log you keep and make sure the total lands in the right line in your books.

How do you keep the log and the books in step? We add up the log each month and put the total in a vehicle line that matches it. We flag the gaps and ask about the missing trips before the month closes. The two never drift apart.

Do I keep personal miles in the log? No. Only the business miles go in the log and the books. The personal miles stay out. We keep the personal share out of the business numbers and note the odometer reading so your CPA can see the split.

Do you tell me what to claim on my taxes? No. We do not prepare taxes or give tax advice. We keep the log and the books clean, and your CPA decides what to claim. You can reach us on our contact page if you want a team that keeps your mileage log and your books in step.