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tamann0619
January 1, 2019
Solved

Recording owner's mileage

  • January 1, 2019
  • 4 replies
  • 0 views

Hi,

 

I'm a sole proprietor and I'd like to enter my mileage into quickbooks as an expense.  However, I'm not necessary looking to write myself a check to reimburse my mileage (I'd rather leave the cash in the business).  All the topics I see for recording mileage include an actual reimbursement.  If I drove 1,000 miles away from the office for work in 2018, is there any reason why I can't just create an expense for $545 (1000 x 0.554)?  When I create this expense, am I the payee?  What are the correct account details for this type of transaction?

 

Thanks!

    Best answer by Rustler

    mileage is not an expense in accounting.

    It is a tax time deduction you can take, if and only if, you do not take the actual expenses of operating a company car.

    4 replies

    Rustler
    RustlerAnswer
    January 1, 2019

    mileage is not an expense in accounting.

    It is a tax time deduction you can take, if and only if, you do not take the actual expenses of operating a company car.

      A
      ashespi333
      January 31, 2019

      Then how should a person enter it into quickbooks online?

        K
        kingkfg123
        August 6, 2021

          Answer:  In the case of owning your own car and you incur mileage, you should record the $545.00 as mileage under "Auto" and corresponding entry would be to credit a loan to Shareholder (If there is a balance) and if no balance there hit Loan from Shareholder.  Th company owes you the money.  You don't have to take now, but keep it on the books just in case you need to take some money out of the company.

         

        AUTO:

        Debit Mileage of $545.00

               Credit Loan to Shareholder or Loan From Shareholder $545.00

          I
          IrinaAB
          April 26, 2022

          If you would like to track owners' miles as an mileage expense account, you can do so by using Personal Expenses Equity account in QBO. You can create this in charts of accounts if it not already there.

           

          You will need to make sure you have a bank account set up as a "mileage account". You will need an expense account set up as "milage expense". You can set up the owner as a payee vendor for better tracking. (This is different than employee where you would have the employee and issue reimbursement expenses for mileage). If the owner is also the employee of the company you might find it better to process as an reimbursement expense account instead of using personal expenses equity account. 

           

          A simple way of entering and tracking the data would be to first expense the mileage transaction between mileage expense account and mileage account bank. Second, you remove the expense from the balance sheet by +new and transfer funds from personal expenses equity account to transfer funds to mileage account bank. (Another option is to record journal entry).

           

          In sum, this is best for owners' mileage expense tracking, it might be easier to simply use the mileage tracking in QBO instead of expensing. 

          AccountaxPlus
          AccountaxPlus
          June 1, 2023

          Three ways of looking at it to help you crack it

          1. Assume it was a hired car 

          2. Assume it's a your own car 

          3. Assume it's a company car 

           

          These scenarios ought to give you a sort of similar treatment.

           

          1. Hired car 

          Dr Travel expenses 

          Cr Cash 

           

          2. Own car 

          Dr Travel/Mileage expenses 

          Cr Cash or Director's loan/current account 

           

          3. Company car 

          Dr. Auto expenses 

          Cr Cash (for fuel and repairs en route etc)

           

          All these should be treated in a similar manner though values may differ (understandably)

           

           

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