The QuickBooks Online mobile app includes a mileage tracking feature that makes this straightforward. Open the app, go to the Mileage section, and you can either enable automatic tracking or add trips manually after you drive.

Automatic tracking uses your phone’s GPS to detect when you’re driving and records the trip in the background. You review trips later and swipe to mark them as business or personal. This works well if you remember to keep the app running and review trips regularly. The downside is battery drain and the occasional false positive when you’re a passenger instead of the driver.

Manual entry works better for some people. After a business trip, open the app and add the trip with the starting point, destination, and purpose. QuickBooks calculates the mileage using Google Maps. You can also enter odometer readings if you prefer tracking it that way.

Every trip needs a business purpose noted. “Client meeting in Springdale” or “Job site visit in Rogers” is enough. The IRS requires you to document the business reason for each trip, and vague entries like “business” won’t hold up if you’re audited. Get in the habit of noting the purpose when you log the trip, not months later when you can’t remember where you went.

At year end, QuickBooks generates a mileage report showing total business miles and the deduction amount based on the current IRS standard mileage rate. For 2024, that rate is 67 cents per mile. If you drove 12,000 business miles, that’s an $8,040 deduction. This is especially significant for trucking and transportation businesses or contractors who spend most of their day on the road.

You can also track actual vehicle expenses in QuickBooks instead of using the standard mileage rate. Gas, maintenance, insurance, and depreciation all get recorded as expenses. Then you calculate the business-use percentage based on miles driven. The actual expense method often saves more for trucks and vans used primarily for business, but it requires more detailed recordkeeping. A bookkeeper near Bentonville can help you figure out which approach saves more based on your specific situation.

The key is picking one method and being consistent. You can’t switch back and forth year to year for the same vehicle without restrictions. Make the decision at the start of the year so your tracking method matches your deduction strategy from day one.