How to Account for Travel Time When You Have to Service Equipment at the Client's Business

Keep track of your travel expenses.

Keeping track of your travel expenses when visiting clients is a fairly simple task to complete. There are several options or tracking systems that you can use to account for the time. There are government, corporate, and private standards that will help you accomplish the task of keeping records in this area of your business. Just be sure to use one system consistently that works for you.

Instructions

1. Account for time using mileage. You can use the Standard Mileage Rate for business set by the IRS, which is currently $0.51 per mile. Take this rate times the number of miles that you have traveled and total it. This will give you the rate that you should charge your client in addition to your fee for services rendered.

2. Account for time using an hourly rate. Some independent contractors and consultants use the standard hourly rate that they usually charge for services to compensate for travel time. For example, if their rate is $75 per hour and it takes them half an hour to travel to their client's location, then they would charge $37.50 for travel.

3. Account for time using a flat rate. Some contractors use one distinct rate that they separate out in the transportation category. They may indicate this as a travel expense on an invoice to give their clients a clear track record of costs that they have incurred in providing services for them.

4. Account for time by adding it to your consulting or contractor's fee. Some consultants charge a standard flat rate for services rendered, in which they have already calculated and added in the travel time. They present one amount on an invoice to a client, which includes the total cost for the overall services provided.

References

• IRS.gov: Topic 511 - Business Travel Expenses
• neo.edu: Are My Car Expenses Tax Deductible
• ideamarketers.com: Travel Expenses Tax Allowances, Car Mileage Rates and Subsistence