On the Road for Business

When you drive to see a client, how do you account for those miles? Discussing options with your accountsnt is paramount alomg with a good record keeping practice.

When we were involved with the sport of dockdiving where our dog would run and jump into a pool after a toy, we often had to drive long distances for a venue. But that was just for fun and a good bonding experience with our dog. If you drive to see a client, it may also be a good bonding experience but it likely can also be written off as a business expense.

Larger corporations may often not permit employees to be reimbursed for actual gas expenses on a credit card or paid by cash. They usually require a mileage log be submitted and they will reimburse based upon the current IRS set mileage reimbursement rate. As of January 1. 2023, the current mileage reimbursement rate was increased by 3 Cents to 65.5 cents. This applies to cars, vans, pickup trucks or panel trucks used for business.

As a small business owner, you will want to have a discussion at the beginning of the year with your accountant about how you treat driving expenses in your firm. There are additional options where a vehicle loan and maintenance and repairs may also be written off, using certain percentages. The rules are best interpreted by an acxounting professional. Sole proprietors or micro businesses may often opt for the mileage reimbursement. However, if your vehicle is in the name of the business and not you individually, exploring additional valid expenses would be the path to explore.

Like so many things, a business has options when addressing how your firm accounts for client visits. Video conferencing has replaced many face to face visits but when you do see clients in person, be informed beforehand how to treat them and have a reliable place like an Excel Spreadsheet where you record your miles and or other vehicle expenses. Navigate the road of business with the proper understanding of maximizing your expense write-off options.

Be well.