Mileage reimbursement, or when an organization pays employees for work-related travel, is standard practice for small and large businesses alike. There are a few different ways employees can track mileage for work, such as keeping a personal log in a notebook, utilizing a digital spreadsheet, or downloading a mileage-tracking app.
Let’s take a look at these options and the pros and cons of each.
- Paper log
With a paper log, employees will have to manually write down the miles driven for all business travel. This is a low-cost option but it can become tedious and time-consuming. There is also a large margin for error when manually entering mileage data.
- Digital spreadsheet
Like paper logs, digital spreadsheets require an employee to manually enter data from the odometer on their car each time they travel for work. They can keep mileage records slightly more organized and employees can utilize formulas to help calculate costs, but there is still room for human error.
- Mileage tracking app
This method is the most precise and can provide greater efficiency when recording mileage data. Mileage tracking apps use GPS technology to track an employee’s location and can automatically calculate mileage for every business trip. This type of software may cost money upfront but it can help employers save time and money in the long run.
Workforce management software with mileage tracking capabilities is the most straightforward option, but ultimately, it’s up to employers to determine which method is best for their business.