 QuickBooks Online 2023, mileage tracking, enter vehicles, favorite location, trips and run reports. Get ready to earn the skills needed to boost your bank books on up with QuickBooks Online 2023. Support Accounting Instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course. Each course then organized in a logical reasonable fashion making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as excel practice problems, PDF files and more like QuickBooks backup files when applicable. So once again click the link below for a free month membership to our website and all the content on it. Here we are in our QuickBooks Online test company file using the accountant view as opposed to the business view you can toggle between the two views by going to the cog up top and switching the view down below. We're going to duplicate some tabs like we do every time to put reports in by right click on the tab up top to duplicate it right click in the duplicated tab to duplicate it once again back to the tab to the middle the reports on the left hand side let's open up one of the favorites that being of course the balance sheet report going to the tab to the right and reports on the left side again this time the other favorite the profit and the loss let's close the hamburger scroll up top and change that range from 010123 to 123123 that's a five I want to three okay and then we'll tap to the middle tab close up the hamburger and change the range to the same 010123 to 123123 what do I want a five there run it okay tabbing to the left in prior presentations we've been talking about the tracking of the mileage down here if in the accounting view it's going to be located in the mileage on the left hand side in the business view it's going to be under that app area but remember that the actual app itself is basically on the phone in this mileage tab will be in your quickbooks file whether you connect the app or not if you connect the app it'll track your miles basically for you and you can pull that into your quickbooks and then allocate between business and personal if not I'll skip this item right here you can manually manually enter the miles as you are as you are making trips and whatnot so that's what we will do now now note remember that as we enter the mileage information over here it's not going to basically change the financial statements we were tracking the financial statements most likely on the income statement for example as we actually pay them using the actual method if you think about it from tax standpoint and that's just what's going to happen because of course you're going to be paying them out of the checking account the mileage method over here tracking it will give us hopefully the information necessary for taxes to make the adjustment at the end of the year so let's do the data input and then we can talk about how we might use that at the end of the year and what that adjustment might look like so let's go back to the first tab now you can also imagine using this mileage tab here for other reasons as well it could be useful if you're doing your quick books for personal purposes to track your personal miles and see where you've been going and whatnot and logging that information and trying to budget possibly for you know how much driving time you're going to have and so on and you also might try to track your miles in here if you're trying to reimburse people in that kind of system as well and and you might say I'm going to try to reimburse people based on a standard rate or something like this and this can help you kind of track the miles but really it's geared towards it's set up to and designed for this the sole proprietor type of business trying to track the miles for their business so we looked at the basic outline in a prior presentation we got the trips up top we've got the import trip download trips manage favorite location and manage rules it's going to give you a quick summary of the information that's had the data input as you're actually entering trips then it's going to put them into unreviewed for those that you have not allocated to business and personal and then the business the personal and all of them obviously the business ones are the ones that are going to give you the little calculation up top for the possible tax benefits related to it all right so let's hit the drop down up top and let's go into first managing the vehicles so we got to have the vehicles on the books of course so we can put in I just put a generic couple vehicles in place and so this one is the vehicle I have it in here for 2023 the current year but you can see that you have the data for prior years as well I'm going to say the vehicle car it's going to I'm going to put the make and model of the vehicle which is useful information because you might need it to give to your tax professional because they might need that information to populate the vehicle when they first start doing whatever method they're going to use on the taxes so that's information that you want to have you know available so you probably want more than just you know afford you want the whole breakout of the make and model possibly and then the vehicle year I put in here and then you own this vehicle or you lease the vehicle I'm going to assume that we own the vehicle and date you bought the vehicle so I just put a date prior to the current year that we are in and the date that it was placed in service so I put something prior to the year that we are in and then down here we've got some useful information how do you want to record mileage for 2023 so first it says by recording odometer reading and then it says by entering the total miles now I put up top the odometer reading because what I'd like to do is basically use this as a place where I can have my odometer reading meaning at the beginning and end of the year it'd be useful to track which your odometer is and the difference between the beginning and ending of the year on the odometer is how many miles you drove total for that year both business and personal now if you turn on like the mileage tracking app in quickbooks then maybe you could track basically everywhere you drive right and then and then all the trips that you have right here should add up to the difference between your odometer readings from the beginning to the end of the year but that kind of gives you that double check that that is indeed the case if you're not tracking everywhere you drive every place you go but you're just trying to track your business miles it can give you a useful kind of guideline to see if you think you picked up the proper business miles right because you'll have the business miles will be the actual miles that you have tracked and the difference between the odometer readings are going to be the the total miles that you have that you have gone right you might not be tracking every place that you drove in that case but possibly just trying to track the business side of things so in some way shape or form it's useful to have the odometer reading at the beginning and the end of the year now if i go back you can add a new vehicle i added another one a truck here so i put it the making model once again i own the vehicle date place and service notice if this one was now the primary item i can tag it over as the primary so now i've got the uh this one hold on a second did it do it let me go out and back into it manage vehicles and i tried to make this one the primary i didn't save it did i that's what you didn't do you have to save it so there it goes so now that one is the primary other than that similar kind of process we've got most multiple vehicles in place so then once we have the vehicles in place we can of start to manage our trips so i can import a trip or add a trip simply here or this is where i can tie in the app so if you get the mobile app that links to your quickbooks in essence and turn on the location tracking it will start to manage your location hopefully you want to you know test that out and it should hopefully pull that information in to the unreviewed area and then you can manage your trips from here if you're going to manually put the information in sometimes it's useful to add the favorite locations so you might just say i i have a small business and i drive to a certain client oftentimes so you might say i have my home office and then the client that i drive to that might be a common kind of thing so the way you can add the favorites is hit the ad favorites down below here's a favorite that i added and i just basically put the address of where i'm going and i said this is or this is my office right so everything that i drive from my we talked about the the rules for when you can deduct mileage for taxes and generally if that's your office your principal place of business where you're driving from there your principal place of business uh could be possibly deductible so then you might want to put your standard places where you're driving uh like this and that can help you to to put the information into the system possibly a little bit more quickly and once you have that you could also then uh manage your mileage rules now i think that these rules uh might be best applicable if you're doing the the auto app because you could set a rule to basically assign something to business or personal and then and then possibly hopefully when you're doing the the tracking of the app it can pull in to business or personal properly if you're just doing the data input possibly just for the business side of things on a manual basis it doesn't look to me like those rules are adding a lot of value however if you're doing the application then that could save you uh some time with the rules so then i'm going to say all right let's uh add a trip so i'm going to add a trip and then we can put the miles up top if i add the points of the trip that i have in my standard location such as i'm going from my office to the client then it adds a distance up top so it actually does a little calculation for me which is nice now obviously if you don't if you don't enter those locations there's no address here uh or you do have an address component so it might populate the location basically automatically uh if not then you're gonna have to pull you can pull in the location do a map quest type of search and pull in the location and then the business purpose meeting with a client i'm gonna say and then down here you can say enable this option will create two trips entries one going from start to end the other in the opposite direction in other words clearly if you're going to your client office and if this is pulled from like a map quest type of thing or whatever google maps or something to to know how far it is if there's a round trip it should be doubled so we'll round we'll round trip it for the round trip and so then i'll say save boom now note here that it put one into into unreviewed and the other into the business area so it's a little bit wonky on where they're going to go but obviously you could just go into the unreviewed area if it hasn't allocated it out because we assigned it to business and we're going to say this is going to go to the business side of things and so i'll save it purpose it needs a purpose meeting with the client boom and then it should pull it over to the business side now so if we go to the business side we've got the two items here so uh the start and start in so if i go into both of these things it made uh two of them with the start point the office the the endpoint the client and then this one it said the start point is is the client and the endpoint is the office right so it did the round trip by adding two separate trips in there both of them having a distance of 2.3 which adds up to a total of point of 4.61 so there's the total miles that we're tracking for business it's multiplying that by the standard mileage rate basically from the iris tax code for 2023 and giving us this 3.02 for the deduction again that doesn't change what's on your financial statements over here on the on the income statement if i refresh the income statement it's not pulling in over a tax deductible line item here what's happening here is we're recording the actual gas that it took to drive there and we're gonna have to make an adjustment for that at the end of the year and that's a standard year in kind of thing for sole proprietors they have to deal with with the auto thing if they're using you know a mileage method to try to figure that out all right so so we'll talk more about that later but let's add another trip and this time let's just add it straight up this way and i'll make it like a different date maybe and this time i won't enter the distance but i'm just going to enter two areas i always use the beaverly hill addresses so i'm going to say it goes from well let's say it goes from our office and then we're going to go to this different address which is 1006 Cielo drive beaverly hills 90210 so then it puts the miles they're a little bit further away from our other beaverly hills home that one cost it's on sale right now if you want to buy it about 55 million dollars 55 million dollars ah okay so then we're going to say this is going to be a meeting with client i'll just say and once again i'm going to say it's a round trip type of thing so i'm going to say boom round trip and there it is it adds one over here for some reason so i'm just going to say put it to business round trip man meeting with client save it okay and then let's add another one let's add a trip and this one let's say is on the 31st and this time i'm going to change the vehicle to a ford to the ford and i'm going to say this one was going from our office to another client which is this is at this one's at uh 1420 david davis drive beaverly hills 90210 and then we're going to say we're meeting with client that one cost 87 million dollars by the way the other the other cheapo is over there paying this 55 million dollars next door it's a disgrace having the next door neighbors with such a cheap home anyways we're gonna save it boom and we're gonna say that let's add this business and we'll say meeting with client and so there it is so there we have our data let's add just one more and let's do let's add this one by adding another favorite locations and let's say this is client number three it's finding a good home to put on here this one's 75 million so i'm going to say add a favorite and this is going to be this is going to be 2571 willing ford drive beaverly hills 90210 and this one's going to be client client two they're pretty they're nice client over there okay so then we're going to say let's add a trip and say so notice it's going back to my Toyota for default because that's the primary but i used my Ford this time and we're going to go from the office to client number two and it's going to be meeting with client round trip it round trip it boom so there we have it so now we've got that one showing up here and let's put it into the business side and then we'll say this is going to be business and i need a reason meeting with client okay and then let's just add a couple personal ones in there just for just for the fun of it i go to this visit this other person that lives in a cheap location in Beverly Hills but they're cool anyways so i go there sometimes let's say this is going to say let's add a trip and then we're going to say that this is going to be let's say this is going from our office which is basically our home office to uh to six two three north rex ford drive and that's only like a seven million five hundred dollar place so i i don't i take my second vehicle there so no one recognizes me well i'm in that low class area so i'm going to say that this is going to be the forward and meeting with client or not a meeting with client because this is personal this is personal stuff charity medical okay so then when you got when you when you're on the personal side you might track the personal stuff for more tax related items like simply personal or charitable and medical are actually tax related items that could be on the schedule a so let's say it's charity we're we're visiting this uh this person that lives in this downtrodden seven million five hundred dollar home and we're doing some charity work over there or something and the reason that has to be separate is because charity work isn't going to be deductible on the schedule c but you might still want to track it because then you might be able to deduct it on the schedule a but the mileage rate isn't the same so i'm going to say track that the mileage rate isn't this point six five five for mileage that might be deductible for like medical or for charity which could be possibly deductible on the schedule a so you might want to put that on the personal side so so you have that over here and you can say this is my other other stuff that i had miles for that possibly you can use a mileage rate which would be different than the schedule c mileage rate because it would be calculated for the schedule a which you would only be using if you were taking the itemized deductions rather than the standard deduction so let's do one more on the personal side let's add another one and say this is starting point from the office and then we did some more charity work over here at this at this one million dollar location so this is going to be two five three four ben ben addict canyon ben addict canyon and personal and i'm going to say that that's going to be once again charity uh which possibly we can track for schedule a or if it was medical possibly you can track the miles for medical but again that has limitations on your taxes and it's different mileage rate so i'm going to say okay boom so now we can track that information over here super cool so up top this this 2342 is based on the business miles because they're basically just multiplying it out the mileage that we have now calculated for business to this i have an unrecognized let's add these to my personal side this is for my personal and this is for the personal boom okay so everything's allocated out now between business personal and all of the miles very nice so that looks good and but this is being calculated based on the business miles and it's just basically multiplying times that 0.655 i believe here's our total business miles and here's our total miles so obviously if you wanted to figure out the personal miles which we're just saying all the personal miles are for charity work that i might use for my schedule a you might give that to your tax preparer and say this is my schedule a charity miles and that comes out of course to 17 uh 16 so at the end of the year at the least you're gonna have to populate this information to give it to a tax professional which you might do by just you know give them this information in a you know an email or something or you can screenshot this information or you can basically hit the drop down here and you can go to download trips and this opens a csv file so it usually opens in excel for most people if you have excel but it's actually a csv file if you want to adjust this file in other words you need to save it as an excel file otherwise all the changes you make are not going to save it so you need to go like save file save as and i'll just dump it into my pictures folder because i don't have any actual pictures and i'm gonna change it from a csv file to an excel worksheet there it is now i can play with it and adjust it in excel and do it and and make it uh make it presentable so i'm gonna make it larger and let's uh let's just i'm gonna select all of these headers and just double click on them just to see what we have here and so here we have it so let's put the top one on and bolden this uh let's just bold it and then let's add a table let's say i add a table that might make it easy to sort insert just a normal table not the whole not there on the whole thing insert the table there you go okay so there we have it and then i'll shorten the starting and ending addresses so we can see what's happening what's what's happening around here and boom now if this was all just business stuff you can just basically add the the whole thing up i can add a totals row let's go to our tables and add a totals row and let's add a sum here so it's just summing up i'm just adding up these which adds up to 52 92 and this is the deduction so i can add this up summing this and boom that's just adding these up so that looks good however we've got some personal stuff here now if this was all business stuff that you could just basically do that but the fact that we have some personal means that i could do a filtering thing here so i could say let's filter this by uh by just the business and so there's just the business stuff and you might have two tabs then so you can give this information to someone here's my business stuff and then here's my personal stuff which is actually charitable there's my charitable miles and here's my personal or business miles right that's one way you can do it you can also use a a pivot table might as well do that for the fun of it right you can use it you can insert a pivot table say i'm gonna well we don't need to do that i won't do a pivot but that's that's it and then if you got audited or something like that you've got the information here and you might give it to your tax preparer as well so they kind of have this backup information to give you a tracking of your miles as opposed to just saying the odometer method where you're just like uh i think i drove the odometer method is like let's see where's managed vehicles uh i i think my starting miles were were hold on a second didn't i have an odometer i think my starting miles were 10 000 of my ending miles i think are i are like 20 21 000 so i drove like 11 000 miles during the year and i'm just going to take like 80 percent of it as deductible or something like that if you do that then you're just estimating out of the blue and if you get audited on that you don't have a whole lot of evidence of the of where you went and what not so what you'd like to so what you'd like to be able to do is is be able to give this supporting information to the deduction that you're taking and note that this uh deduction amount if i if i pull over how they're calculating this is that 0.655 right that's just the mileage rate so we could just say 0.655 and then if i drove this many miles times that uh then you would think well hold on this still has some personal stuff in it let's filter this back down to just business so then so then it then it comes out right right so it's just the 35.76 business miles times this amount and that's where they're getting this business deduction obviously you're accountant will take this information and just enter the business miles in uh and then and then the system will calculate this in this basically the same way the tax software but you can get a good estimate of your deduction this way which might help you for your for your budgeting uh and whatnot so that's how you can kind of provide it to your tax professional now the next step is that you might want to say well how can i see that over here in my financial statements because i have my actual deductions over here and i want to do this for taxes how can i kind of change this possibly with the help of excel if you're a tax professional or doing your own taxes or if you just want to do budgeting so that you can kind of see your income statement we might be able to use like class tracking to give us an idea uh of a of a of the income statement and an adjusted income statement which is kind of neat so we'll we'll dive into that in future presentations