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Mileage Tracking Made Easy With Mobile App

Jun 29, 2017 3:42:07 PM

Imagine keeping track of every mile you drove for business purposes, every working day for 52 weeks. Sounds like a mammoth task, doesn’t it?

Most companies that use a manual or semi-automated expense management system expect their employees to be their own mileage tracker. Mileage is one of the very few expenses that comes with no receipt.

Without an automated way of tracking mileage, employees usually end up manually filing travel sheets and trip logs to get their money reimbursed. This requires employees to be disciplined about data-entry into trip logs and waste billable hours in this non-strategic workIf you are one of those who need to track mileage, this article will drive you through the best way to keep a track of your mileage. Before we talk of the solution, let’s first try and understand why mileage tracking is vital to businesses, and a necessity for employees.

It is quite obvious companies would want their employees to keep track of mileage for reimbursement procedures. However, there are other reasons as to how mileage tracking can help companies and the reason they make their employees track it. Some are listed below:

  • Insights on Travel and Spending 

    Companies have a fair idea as to how the employee spends his time on the field by taking a look the mileage section in the expense report. With the insights gained the company can set limits on spending. This will further help save costs on reimbursement and limit excessive and unproductive expenditures.

  • Tax Deductions 

    It is vital for any company to minimise their tax bill by maximising their deductions. Companies can claim mileage expenses and use them to deduct on tax returns. This helps companies reduce the overall tax liability and may even generate tax refunds for them.Nonetheless, companies and employees face a lot of difficulties when it comes to keeping an eye on mileage

  • Paper Logs and Spreadsheets

    Employees are expected to make a note of the miles driven and the date, time and purpose of the meeting regardless of the situation they are in, say, running late. They will also have to add up the miles at the end of the month and submit it along with their expense report. Even with spreadsheets, the task doesn’t get any easier. Employees now have to note down the miles twice, once in the log and then manually feed it into their computers. This promotes the labor to increase two-fold along with the risk of typos.

  • Commute vs Business travel

    Many a times employees are unaware of the difference between personal commute and business travel. For example, some employees have included commute from work to home as a business expense. 76% of the mileage data in expense reports are inaccurate. This leads to finance teams going back and forth with employees trying to set things straight.

  • Mileage Fraud

    Frederick Baruzzi, a superintendent of a school in Connecticut managed to manipulate $50,000 as mileage reimbursement over a course of two years. Mileage fraud among other expense frauds often goes unnoticed. Furthermore, the manual submissions may not always be accurate and there are very few ways to verify them. Here are two ways companies can detect mileage fraud -

    • Check for irregularities - Low personal miles and high business miles may call for inspection.                 
    • Odometer readings - In case your company has leased the vehicle to the employee, make sure you keep track of the odometer readings.

However, these methods call for extra labor and are time consuming.

 

The Ultimate Mobile Solution 

Sometimes it is not easy to tell whether the employee is at fault or the company is mistaken. Regardless, the reimbursement is slow and many a times employees end up losing money by forgetting to claim some expenses. Technology has driven many businesses to simplify their expense management systems. Automated mileage tracking is a great way to help companies and employees abandon the manual or semi-automated mileage tracking systems. With the minimum margin for error and the easy transfer of data from tracking to filing an expense, employees are saved a lot of valuable time and efforts. These smart, GPS enabled tracking systems also promote accuracy. With these trustworthy, simple systems, companies need not worry about mileage fraud and can speed up reimbursement cycles.

At Fyle, we try to simplify the process of mileage tracking as much as possible. Employees can use the Fyle app to keep a check on mileage on a day to day basis. Just feed in your destinations, choose the route and the software will calculate the distance and the amount based on a standard rate. With the option of choosing between two and four wheelers, employees need not take any pain to calculate mileages on their own.

Mileage tracking on Fyle

The mileage data is 'Fyled' as an expense in real time. Employees need not spend any extra time in making reports manually. Moreover, the concurrent policy checks make it easier for employees to verify and change non-compliant expenses in real time. Simultaneously, accountants and managers can review the expenses and authorize them. Accuracy is maintained and the time allotted to tracking is reduced significantly.

Employee satisfaction is maximized as the staff no longer has to log in all the miles manually. Managers are relieved of some major burdens of having to put in extra time to ensure mileage reports are correct. The opportunity for better visibility into field activities through a centralized account makes automation of mileage tracking a great alternative for companies.

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