Using the Vehicle Mileage Tracker in QuickBooks: Pro 2004 and Premier 2004

Choose a method for deducting vehicle expenses.

Many small business owners miss out on deducting their business-related mileage. In general, you can use one of the following for figuring out your vehicle mileage expenses:

• Standard mileage rate
• Actual expenses

Intuit recommends that you consult with your tax advisor, accountant, or the IRS to determine whether you can deduct the costs of operating and maintaining your vehicle and which method you should use.

QuickBooks: Pro 2004 and QuickBooks: Premier 2004 can track mileage for your business vehicles. You can use the mileage information for tax deductions for your vehicles and to bill customers for mileage expenses. You cannot use vehicle mileage tracking to reimburse your employees for mileage.

Get the Vehicle Mileage Tracker. Upgrade now to QuickBooks: Pro or Premier 2004.

Track vehicle mileage in QuickBooks 2004.

By tracking your vehicle mileage, you can enter, sort, and print lists of your vehicles and the mileage you've driven for work-related tasks. You can use this information for your tax deductions and for billing your customers.


Limitations.

You cannot use this feature to reimburse employees or vendors for mileage. You cannot track specific vehicle expenses, such as gas, tolls, and so on with this feature. However, you can track these types of expenses by entering bills for them as the expenses are incurred by your employees. Also, if you converted your data from a Quicken file, your vehicle mileage information does not transfer to QuickBooks.


To track vehicle mileage, follow these 5 steps:

1. Enter the current mileage rates for vehicle mileage.
   
   Keep your mileage rates up-to-date, so you can always take advantage of the latest IRS deduction rates for your business vehicles. QuickBooks calculates the appropriate mileage expense based on the dates and rates you enter in the Mileage Rates window. Check regularly with the IRS for the latest rates and enter each date and rate change as it becomes effective.
   
   
   1. From the Company menu, choose Enter Vehicle Mileage.
   2. On the toolbar in the Enter Vehicle Mileage window, click Mileage Rates.
   3. In the Mileage Rates window, select a date from the calendar for the Effective Date, then press Tab.
   4. Enter the IRS rate for that date, then click Close.
   
   
2. Add a vehicle to the Vehicle List.
   
   To track mileage for a vehicle, you must add it to the Vehicle list. If you already have the Enter Vehicle Mileage window open, you can QuickAdd a vehicle by clicking Add New on the Vehicle drop-down list.
   
   
   1. From the Company menu, choose Enter Vehicle Mileage.
   2. In the Enter Vehicle Mileage window, click Vehicle List (on the toolbar).
   3. From the Vehicle menu, choose New.
   4. In the New Vehicle window, enter a name for the vehicle and an optional description. The vehicle name might be the model and year of the car, the license number, or a specific number that you've given to a vehicle.
   5. Click OK.
   
   
3. Enter mileage for a vehicle.
   
   To track mileage for a vehicle, you must add it to the Vehicle list. If you already have the Enter Vehicle Mileage window open, you can QuickAdd a vehicle by clicking Add New on the Vehicle drop-down list.
   
   
   1. From the Company menu, choose Enter Vehicle Mileage.
   2. In the Enter Vehicle Mileage window, choose the vehicle (or add a new vehicle) for which you want to enter a mileage record.
   3. Enter the start and end dates for the trip.
   4. Enter the mileage from the odometer start and end readings. QuickBooks will calculate the total mileage for you, based on these numbers.
   5. (Optional) If you plan to bill a customer, select the Billable checkbox.
   6. If you selected to bill a customer for the mileage, choose the appropriate items from the Customer: Job, Item, and Class (if class tracking is turned on and it is applicable to this record) drop-down lists.
   7. Save your mileage record.
   
   
4. Run vehicle mileage reports.
   
   You can use four reports in to review your vehicle and mileage records:
   
   
   • Mileage by Vehicle Summary
   • Mileage by Vehicle Detail
   • Mileage by Job Summary
   • Mileage by Job Detail
   
   You can run these reports by selecting the Mileage Reports button on the Enter Vehicle Mileage toolbar or by choosing Jobs, Time & Mileage from the Reports menu.
   
   
5. (Optional) Charge your customer for the mileage.
   
   
   1. Enter the vehicle mileage and be sure to mark it Billable and assign it to a Customer: Job.
   2. Open the sales form where you want to enter the cost, and click Time/Costs on the toolbar.
   3. In the Choose Billable Time and Costs window, select the Mileage tab.
   4. Select the Use column to the left of the mileage item.
   5. (Optional) Click Options to determine how you want the mileage expenses to appear on the invoice. You can combine several mileage items, include descriptions, and so forth. These options allow you to view the detail in QuickBooks, even if you print the sales form showing only single line items.
   6. (Optional) If you want the mileage expenses you select to appear as a single line item when you print the invoice or sales receipt, select the "Print selected time and costs as one invoice item" checkbox. If you select this checkbox, it overrides the options for transferring billable mileage settings.
   7. Click OK.