Expenses & Payables

Mileage Log

By: Alec Hollingsworth

Updated:

June 2, 2025

DEFINITION:

A mileage log is a record of vehicle miles driven for business or nonprofit purposes, used to substantiate reimbursements or tax deductions.

A mileage log is a detailed record that tracks the distance traveled by a vehicle for business or nonprofit purposes. This log typically includes the date, starting point, destination, purpose of the trip, and the number of miles driven. For nonprofits, maintaining accurate mileage logs is essential for substantiating expense reimbursements, claiming mileage deductions, and ensuring compliance with IRS requirements. Mileage logs can be paper-based or digital, but must be kept up-to-date and accurate to withstand audits. Proper documentation not only maximizes allowable reimbursements or deductions, but also promotes transparency and accountability in financial reporting.

Key Takeaways

Tracks vehicle mileage for business or nonprofit use
Required for reimbursements and tax deductions
Must include dates, destinations, purposes, and miles driven
Facilitates compliance with IRS rules

Why It Matters

Mileage logs support compliance, proper reimbursements, and accurate tax reporting.

Real World Example

A small animal rescue relies on volunteers to transport animals to veterinary appointments and adoption events. To reimburse volunteers for fuel expenses, the organization requires each driver to submit a mileage log documenting the date, starting and ending locations, purpose of the trip, and total miles driven. These logs are reviewed monthly, and volunteers are reimbursed at the IRS standard mileage rate. This process ensures accurate expense tracking, supports valid reimbursement requests, and provides clear documentation for annual IRS filings and potential audits.

How Aplos Helps

In Aplos, you can track and categorize mileage expenses alongside other types of reimbursements, ensuring comprehensive and accurate accounting for your nonprofit. By maintaining digital mileage logs within Aplos, organizations can quickly create reports, simplify reimbursements, and maintain supporting documentation for audits.

Frequently Asked Questions

What information should a mileage log include?

A mileage log should include the date, starting location, destination, purpose of the trip, and miles driven for each entry.

Why do nonprofits need to keep mileage logs?

Nonprofits need mileage logs to substantiate expense reimbursements, claim tax deductions, and comply with IRS regulations.

Can I keep a digital mileage log?

Yes, digital mileage logs are acceptable if they are accurate, complete, and accessible for review or audit purposes.

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