How to Set up mileage tracking in QuickBooks Desktop?
Accurate mileage tracking is crucial for businesses of all sizes. Whether you’re a sole proprietor visiting clients, a contractor traveling to job sites, or a company with a fleet of vehicles, meticulously recording your business miles can lead to significant tax deductions and provide valuable insights into your operational costs. QuickBooks Desktop, a popular accounting software, offers several ways to manage and track mileage effectively. This comprehensive guide will walk you through the various methods and steps involved in setting up mileage tracking within QuickBooks Desktop, followed by a helpful Q&A section to address common queries. Why is Mileage Tracking Important? Before diving into the “how-to,” let’s briefly understand the “why.” The Internal Revenue Service (IRS) allows businesses to deduct the cost of using a vehicle for business purposes. This deduction can be calculated using either the standard mileage rate or the actual expenses method. While the actual e...