Easiest way to record business/motor expenses

[jozeff]

To all the accountants out there,

I have been asked to record the proportion of business use of my vehicle via logbook and keeping dockets etc.

What is the easiest way to do it? The damn logbook is HELL, but the worst thing is trying to keep all the fuel receipts and entering them in my spreadsheet.

I've heard of one of those motorpass cards which you use like a credit card and everything gets printed out in a statement at the end of financial year.

Any advice?

Joe

[05C4R]

i just write out the log book in one hit and make the lot up so you get the right percentage, for the fuel get a caltex or bp card and only use it for fuel, keep the statements and make sure the locations kind of match the log book.

[Jeef Beef]

How much do you use your car for business? The logbook's usually the best way to go if you want it to give an accurate representation of your expenses.

If you only drive your car occasionally for business, you can use the method where you can record a certain amount per kilometre as an expense. IIRC that's $0.74/km for your 130i. This is an extremely easy method and definitely less time consuming than the logbook since it requires no written documentation. You get a fixed $0.74 regardless of your fuel/service expenses. However, it only allows you to have a maximum of 5,000km per year.

[Taymaishu]

Originally Posted by Jeef Beef

How much do you use your car for business? The logbook's usually the best way to go if you want it to give an accurate representation of your expenses.

If you only drive your car occasionally for business, you can use the method where you can record a certain amount per kilometre as an expense. IIRC that's $0.74/km for your 130i. This is an extremely easy method and definitely less time consuming than the logbook since it requires no written documentation. You get a fixed $0.74 regardless of your fuel/service expenses. However, it only allows you to have a maximum of 5,000km per year.

That's correct, and no proof is required upon submission of the tax return/BAS.

It is really really easy!

[05C4R]

if you want to lower your FBT you need to log a shit load more business kms then 5000 whether they be real or false.

if your an employee and the boss pays then just do what ever is easiest.

[MikeVictor]

I thought you had to keep a logbook for a 12 week period and record the km's on 1 July and 30 June. This was then valid for 5 years, irrespective of changes to vehicles.

I'm not an accountant though, so check with your guy he'll be able to tell you I'd hope.

Keeping a logbook for 12 weeks that you can use for 5 years isn't a big drama surely.

[Jeef Beef]

Originally Posted by beemer

if you want to lower your FBT you need to log a shit load more business kms then 5000 whether they be real or false.

Yep, that is the downside. 5,000km at $0.74 really does not offer you much of a tax shield. Guess that's the payoff for being lazy.

Originally Posted by Taymaishu

That's correct, and no proof is required upon submission of the tax return/BAS.

It is really really easy!

But make sure you work out a way to calculate how you got those kilometres in case they decide to call you.

[zenderm3]

There is a iPhone App called VehiCal... you can use that to log your kms and then print out the list/write it up manually later!