Does FreshBooks Allow Me to Track My Business Mileage?

 

When it comes to running a business, especially for freelancers, consultants, and small business owners, keeping track of mileage can be crucial for managing expenses, maximizing tax deductions, and maintaining accurate records. Business mileage is not just a number—it represents cost, time, effort, and a potential tax write-off. That’s why it’s essential to know whether your accounting software helps simplify this aspect of financial management.

If you use or are considering using FreshBooks, one of the most popular cloud-based accounting tools for small businesses, you might be asking yourself: Does FreshBooks allow me to track my business mileage? The short and simple answer is yes. FreshBooks has a mileage tracking feature that is designed with simplicity, automation, and accuracy in mind. This blog post dives deep into what FreshBooks offers for mileage tracking, how to use it, and why it matters.

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Understanding the Importance of Mileage Tracking

Before we explore FreshBooks’ mileage tracking feature, let’s understand why mileage tracking is so important for business operations.

Tax Deductions

Business mileage is one of the most common tax deductions for self-employed professionals and business owners. In countries like the United States, the Internal Revenue Service (IRS) allows a specific deduction per mile driven for business purposes. For instance, if the IRS mileage rate is 65.5 cents per mile and you drive 1,000 miles for business, you could deduct $655 from your taxable income.

To qualify for this deduction, you need to keep accurate and detailed records. Vague estimates or undocumented mileage can be rejected by tax authorities. That’s where reliable tracking tools come in.

Expense Management

Mileage tracking isn’t just about taxes. It also gives you a clearer picture of your total business expenses. If you charge clients for travel or factor mileage into your pricing, accurate tracking helps with client billing and budgeting. It can even inform strategic decisions—like whether to invest in a company vehicle or use public transportation.

Time Efficiency

Manual tracking methods, like using a notebook or spreadsheet, can be time-consuming and error-prone. With automated tools like FreshBooks, tracking becomes seamless and integrated into your broader financial management system.

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FreshBooks and Mileage Tracking: The Basics

FreshBooks offers a built-in mileage tracking feature that simplifies the process of recording and managing business mileage. While the desktop interface is robust for most accounting tasks, mileage tracking is primarily done through the FreshBooks mobile app, which is available for both iOS and Android devices.

Why Mobile?

Your mobile phone is your best companion for mileage tracking because it moves with you. GPS-based apps can track your location in real time, automatically detecting when you start and stop a trip. That means no more writing down odometer readings or trying to remember the distance you traveled last week. FreshBooks leverages this technology to give users a stress-free way to log their mileage.

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Key Features of FreshBooks Mileage Tracking

Let’s take a closer look at what FreshBooks has to offer when it comes to tracking mileage:

1. Automatic Mileage Tracking

Once you install the FreshBooks app and enable mileage tracking, the app uses your phone’s GPS to log trips automatically. You don’t have to open the app every time you drive—FreshBooks detects motion and starts tracking in the background.

At the end of the trip, it records the start and stop locations, total miles driven, and the route taken. You can then categorize the trip as business or personal.

2. Manual Mileage Entry

If you ever forget to enable GPS or prefer entering trips manually, FreshBooks gives you that option. You can input:

• Start and end addresses

• Date of travel

• Purpose of the trip

• Total distance

This feature is handy for retroactively entering trips or logging mileage from non-automobile transportation.

3. Trip Categorization

You can easily categorize trips as either Business or Personal. Only business trips are counted toward your expense reports and tax deductions. This feature helps keep your personal driving separate, ensuring compliance with tax rules and maintaining data accuracy.

4. Mileage Reports

FreshBooks automatically generates detailed mileage reports that show:

• Trip dates

• Start and end locations

• Distance

• Purpose (if entered)

• Deductible amount (calculated using current mileage rates)

These reports are exportable and can be used for tax filing, internal record-keeping, or sharing with your accountant.

5. Integration with Expenses

Mileage isn’t tracked in isolation. In FreshBooks, mileage data integrates with your other business expenses. This allows you to see how travel costs fit into your overall financial picture. You can even include mileage as a line item in client invoices if your billing model includes travel charges.

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How to Enable and Use Mileage Tracking in FreshBooks

Here’s a step-by-step guide to getting started:

Step 1: Install the Mobile App

Download and install the FreshBooks app from the App Store or Google Play Store. Log in to your account or create one if you’re a new user.

Step 2: Enable Mileage Tracking

Once you’re in the app, go to the settings and look for the Mileage Tracking feature. Enable GPS permissions so that the app can track your location in the background.

Step 3: Start Driving

Once the app is set up, it will automatically start detecting trips. You don’t need to do anything while driving. After a trip ends, you’ll receive a notification or can open the app to review and categorize the trip.

Step 4: Review and Categorize Trips

Open the app and go to the mileage section to see all your recent trips. Swipe or tap to categorize each one as Business or Personal. You can also add notes about the purpose of the trip.

Step 5: Generate Reports

Whenever you need to review your mileage for tax season or budgeting, go to the reports section in FreshBooks. You can filter by date range and export the report as a PDF or CSV.

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Why Choose FreshBooks for Mileage Tracking?

Simplicity

FreshBooks is known for its clean and intuitive interface. Its mileage tracking tool is no exception. With minimal setup, you can start logging your trips right away.

Automation

The automatic tracking feature ensures that you don’t miss any trips and saves time compared to manual tracking systems.

Accuracy

GPS-based tracking means you get accurate mileage records, which is critical for tax filings and expense management.

Integration

Since FreshBooks is a full-fledged accounting platform, your mileage data doesn’t live in a silo. It’s part of your larger financial system, making reporting, billing, and tax prep much easier.

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Limitations and Considerations

While FreshBooks offers a great mileage tracking feature, it’s important to be aware of its limitations:

• Mobile Only: Mileage tracking is currently only available via the mobile app. There is no desktop version for this feature.

• Privacy Concerns: Because the app uses GPS in the background, some users may have concerns about location tracking. However, permissions can be managed within your phone settings.

• Battery Usage: Continuous GPS tracking can impact battery life, though FreshBooks is optimized to minimize drain.

• Plan Restrictions: Some features, including mileage tracking, may only be available on certain pricing plans. Check your subscription level to ensure you have access.

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Final Thoughts

FreshBooks is more than just an accounting tool—it’s a complete business management platform designed for modern entrepreneurs. With the ability to track mileage automatically through its mobile app, FreshBooks makes it easier for business owners to manage travel-related expenses accurately, efficiently, and in compliance with tax regulations.

Whether you’re a freelance graphic designer meeting clients across town, a consultant traveling between offices, or a small business owner doing deliveries, mileage tracking can save you money and provide a clearer understanding of your costs. With FreshBooks, you can automate this process, reduce manual work, and focus on growing your business.

If you haven’t yet explored FreshBooks for your business, the mileage tracking feature is just one of many reasons to consider it. From invoicing and expense tracking to time logging and reporting, FreshBooks offers a comprehensive solution for today’s entrepreneurs.