Mileage Tracking

Log business miles, automatically calculate deductions at the current IRS rate, and convert trips into expense transactions for your books.

Overview

If you or your employees drive for business purposes, the IRS allows you to deduct a standard amount per mile. Kantivo's mileage tracker makes it easy to log every trip, categorize it correctly, and turn it into a proper accounting entry when you are ready.

Access mileage tracking from the sidebar by navigating to Mileage Tracker. All trips are stored per company, so each business you manage maintains its own mileage log.

Logging a Trip

To record a new trip:

1. Open Mileage Tracker and click Log Trip
2. Enter the Date the trip occurred
3. Type the Starting Location (e.g., "Office" or "123 Main St")
4. Type the Destination (e.g., "Client site - Acme Corp")
5. Enter the Distance in miles (odometer reading or estimated)
6. Write a brief Purpose describing the business reason for the trip (e.g., "Client meeting," "Supply pickup," "Job site visit")
7. Select the trip Category (Business or Personal)
8. Click Save Trip

Kantivo automatically calculates the deductible amount by multiplying the distance by the current IRS standard mileage rate.

Trip Categories

Every trip must be categorized as one of the following:

• Business: Trips driven for work purposes -- client visits, supply runs, bank deposits, job sites, conferences, and similar activities. These are eligible for the mileage deduction.
• Personal: Commuting to and from your regular workplace, errands, and other non-business driving. These are not deductible but can still be logged for completeness.

Only trips marked as Business are included in deduction calculations and can be converted to expense transactions. Personal trips appear in your log for record-keeping but have no financial impact.

Why Track Personal Miles?

If you use a vehicle for both business and personal driving, maintaining a complete log of all trips strengthens your records in the event of an audit. The IRS looks favorably on taxpayers who can demonstrate the total miles driven and the business percentage with clear documentation.

Converting Trips to Expenses

Once you have logged business trips, you can convert them into proper expense transactions in your general ledger:

1. In the Mileage Tracker, select one or more business trips
2. Click Convert to Expense
3. Kantivo calculates the total deductible amount (miles multiplied by the IRS rate)
4. Choose the Expense Account to debit (typically "Vehicle Expense" or "Mileage Expense")
5. Choose the Payment Account to credit (e.g., "Owner's Equity" or "Checking Account")
6. Review the transaction details and click Create Transaction

The resulting journal entry debits your vehicle expense account and credits the appropriate equity or payment account. Converted trips are marked so they cannot be converted again by accident.

Mileage Summary Report

The mileage summary aggregates your trip data into a report suitable for tax preparation. To generate it:

1. In the Mileage Tracker, click View Summary
2. Select the Date Range (typically the tax year, January 1 through December 31)
3. The summary displays:
   • Total business miles driven
   • Total personal miles driven
   • Business use percentage
   • Total deductible amount at the applicable IRS rate
   • Amount already converted to expense transactions
   • Amount remaining unconverted

You can export this summary or share it with your tax preparer. The detailed trip log behind the summary provides the line-by-line substantiation the IRS expects.

IRS Standard Mileage Rates

The IRS publishes a standard mileage rate each year that reflects the average cost of operating a vehicle. Kantivo uses this rate to calculate deductions automatically.

Kantivo applies the correct rate based on the trip date. If you log a trip from 2024, it uses the 2024 rate; a trip from 2025 uses the 2025 rate. When the IRS announces a new rate, Kantivo updates automatically.