Paybackable

Tip: Use Google or Yahoo Maps to calculate business miles

If you go to a class on bookkeeping, or ask an accounting professional about how best to keep records for business miles, most of the time you will be given a little paper journal that asks you to record the date, the destination/purpose/contact, the starting and ending odometer readings, and the mileage.

Odometer reading? Yes, I’m sure everyone remembers to write down their odometer readings every time they travel for business. But one can understand why that information is requested. For years, it was simply the only way to calculate miles traveled. That is, however, until mapping on the web arrived, bringing with it GPS-based distance calculations. Now, instead of having to read your odometer, you can simply enter your starting address and destination in mapping web sites to get the distance. But what if the “route” they suggest is different that the one I chose? Well, fortunately, you can drag the “route” to match the way you actually drove, and the site will recalculate the mileage. This method works great, and allows you to calculate the mileage after the fact because, admit it, how many people remember to do this while they’re driving?

But don’t you have to have the odometer readings? In a word - no. If you look up mileage expense deductions on the IRS web site, the word odometer is not used. Instead, you will find the following: “To claim the deduction, keep adequate records such as a written travel log with complete and accurate mileage records for each business use of your car. If you are unable to produce a clear and accurate business mileage record, the IRS may disallow the deduction.”

In From IRS publication 463, you will find the following: “You cannot deduct amounts that you approximate or estimate” and “You must generally prepare a written record for it to be considered adequate. This is because written evidence is more reliable than oral evidence alone. However, if you prepare a record in a computer memory device with the aid of a logging program, it is considered an adequate record” and even “You do not need to write down the elements of every expense on the day of the expense. If you maintain a log on a weekly basis that accounts for use during the week, the log is considered a timely-kept record.”

In short, odometer readings are an antiquated notion - there’s a much easier way to track business miles driven.

We have now added a link from Paybackable’s mileage tracking screen to the directions page on Google Maps. Just click on the “Miles” column title to go to Google Maps. Not only will you get the distance driven, but Google Maps remembers addresses you’ve typed in, so it learns and saves you time the more you use it. Happy tracking!

Posted in Expenses, Mileage | 1 Comment »

Easier to get started, edit expense report title in place

Based on a number of questions from new users, we’ve changed the way you get started on Paybackable. Before, after signing up and choosing the categories you wanted to use, we would drop you into an empty list of expense reports, requiring you to create a new expense report before getting you to the actual task of expense and mileage entry.

Now, we automatically create your first expense report for you, called “My First Expense Report” and drop you right into the page to begin entering transactions. Plus, you can change the name of the expense report by clicking on the title itself and changing it right there.

Thanks to all the people who have asked questions or provided feedback - you’re making the service that much easier to use!

Posted in Release | No Comments »