August 13th, 2008 kmr2
Thanks to some great user feedback (props to Rachel for first bringing it up), we have added the ability to change the category (or expense account, in QuickBooks and accounting parlance) that Paybackable tracks mileage expenses under. Until now, we simply defaulted it to “Car/truck expense”, as that was a very common expense account used in QuickBooks. However, you may now change the category/account to whatever you wish.
To make the change, simply log in, go to the “Settings” tab and click on the “Categories” link on the left hand side. You will then see a screen like this (the key section is circled in red):
Simply change the name of the category/account to the one you want (copying and pasting is probably a good idea if you’re trying to use a specific category from QuickBooks) and click the “Update mileage account name” button. You’re good to go.
Posted in Expenses, Mileage, Release | No Comments »
June 30th, 2008 kmr2
If you’ve been reading the news, you know that the IRS business mileage rate goes up to 58.5 cents starting tomorrow through the end of the year. We actually got an email from our bookkeeper today telling us we should “track our mileage through June 30 2008 separately” because of the change. Of course, we informed her that we were adding the new rate to Paybackable, so tracking the change in mileage rates would be, well, a complete non issue:-)
So, for those out there who are feeling any pain from this change (when all you should feel is thankful relief that you get some of your cash back), just log into the easiest expense reporting solution on the market and grab that higher business deduction. For our existing customers, starting tomorrow, all you need to do differently is…nothing!
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June 24th, 2008 kmr2
For those of you (and there are a lot) who have to drive for business, a little good news to go along with the record gas prices. The IRS announced today that the standard mileage rate for business miles will increase 8 cents to 58.5 cents per mile, effective July 1, 2008 through December 31, 2008. You can read the full details on the IRS web site.
Naturally, we will be updating Paybackable to reflect the new rate, so any mileage expenses you enter during that time will have the correct mileage rate based on your date of travel. See? More savings for you, no additional work required:-) But we’d certainly appreciate you telling your friends and business associates about us!
Posted in Expenses, Mileage | No Comments »
March 25th, 2008 kmr2
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 »
February 15th, 2008 kmr2
It will probably come as little surprise to learn that gasoline prices have doubled in the last 7 years, from a US average of $1.50 per gallon in 2001 to $3.00 a gallon in 2008. In fact, you can see a 2006 congressional chart showing the growth.
Now compare that to the standard business mileage deduction. Over the same period of time, the government has increased the deductible rate for small business owners like us from $.345 to $.505, an increase of 46% (see this IRS page for the rate changes over time.)
Posted in Expenses, Mileage | No Comments »
