How to Set up Vehicles and Mileage Tracking in QuickBooks Online?

You can use the QuickBooks Online app to record business mileage for your vehicles. Keep records of your business trips and vehicle information throughout the year so that you have everything you need to make deductions at tax time.  

Add a vehicle to QuickBooks

You can add as many vehicles as you need. To do so, follow the steps mentioned below for your web browser or mobile experience. 

On a Web Browser

Step 1: Navigate to Mileage 

First, sign in to your QuickBooks Online account. Then, navigate to the Expenses option and select Mileage. 

Step 2: Choose Add Trip

Now, click on the dropdown menu next to Add Trip. 

Next 3: Select Add Vehicle

Choose the Manage Vehicles option, then choose Add Vehicle. After this, enter the information about your Vehicle. 

Note: If you want to update the information on an existing vehicle, you need to select the Vehicle you wish to edit, make the required changes, and then choose Save. 

Step 4: Save the Changes

Now, from the Tax info menu, choose how you wish to record your mileage for the year and choose the Save option. 

On an iPhone or iPad (iOS)

Step 1: Navigate to Auto-tracking

First, go to the Menu, then tap on the Mileage option. After this, click on the Auto-tracking option. 

Step 2: Choose Add Trip

Now, from the Manage section, click on the Vehicles option. Then, click on the Add Vehicle option. 

Note: If you want to update any of your existing Vehicle’s information, then click on the Vehicle you wish to update. Make the necessary changes, then tap on Save.    

Step 3: Enter the Vehicle’s Details

Enter the Vehicle’s make and model. Then, click on the Save option. 

Note: If you wish to set this as your primary Vehicle, then tap on the switch. You can also enter extra info for your Vehicle when you click on Optional Information.   

On an Android Phone or Tablet

Step 1: Go to Vehicle

First, navigate to the Menu option, then tap Mileage. Then, tap on the +New option and click on the Vehicle. 

Step 2: Select Add New Vehicle

Now, click on Manage Vehicles, then click on Add New Vehicle. 

Note: If you wish to update the information of an existing vehicle, select it, make the required changes, and then click the Save option. 

Step 3: Save the Changes

Enter the information for your Vehicle, then tap on the Save button. 

Allow location access

If you want auto-tracking to work, provide location access for QuickBooks on your mobile device. Follow the steps below dispensing on the device you use: 

On an iPhone (iOS)

Follow the instructions below to turn on your Location Services on an iPhone. 

Step 1: Navigate to Location Services

First, go to the settings menu, then select Privacy & Security, and after that, Location Services. 

Step 2: Ensure the Service is on

Now, ensure that the location service is on, or scroll down to find the app. 

Step 3: Select an option

Click on the app and select one of the following options:

• Never: Prevents access to Location Services information.
• Ask Next Time Or When I Share: This allows you to choose Always While Using App, Allow Once, or Don’t Allow.
• While Using the App: This option allows access to Location Services only when the app or one of its features is visible on the screen. If an app is set to While Using the App, you might see your status bar turn blue with a message that an app is actively using your location.
• Always: Allows access to your location even when the app is in the background.

On MacBook

Follow the steps below to Turn on Location Services:

Step 1: Navigate to Privacy & Security

First, select the Apple menu and then System Settings. Then, click on the Privacy & Security option in the sidebar (you might have to scroll down). 

Step 2: Tap on the Services

Now, tap on Location Services from the right. 

Step 3: Turn on Location Services

Turn on Location Services, enter your password, and then click Unlock. 

On an Android Phone and tablet

If an app has permission to use your device’s location, it can use your device’s approximate location, precise location, or both. 

Step 1: Search the app icon

First, search for the app icon on your device’s home screen. After finding it, touch and hold the app icon. 

Step 2: Select the All Permissions option

Now, click on the App info, then Permissions > More, and the All permissions. 

Step 3: Find the Location

Under the Location option, you can search for the type of location the app requested. If you can’t find the location, then this app hasn’t asked for your device’s location. 

On Windows 11

Step 1: Navigate to Settings

First, go to the start option, then select the Settings menu.

Step 2: Open the Location Menu

After that, open the Privacy & Security option, then select the Location option.

• Do one of the following:
• If you are an administrator on the device, you can use the options in the Location Services setting to set the use of the location service on this device. If you are not an admin on this device, you will not see this setting at all.
• If you want to turn location on or off for your user account only, toggle the Let apps access your location switch On or Off. If on the settings page, there is written Location services is off, then the option to let apps access your location for an individual user account will be disabled. 

Turn on mileage tracking

Activate the Auto Mileage feature when running QuickBooks Online on a mobile device. These steps apply whether the mobile device is running iOS, Android, or any other operating system. 

Note:

• Before you start tracking your mileage, add your vehicle information. 
• Currently, only the primary admin and company admin have the right to track mileage using QuickBooks Online. Each user has the option to view their mileage. 

1. Navigate to Menu, then click on the Mileage option. 
2. Now, tap on the Auto-tracking. 
3. Then, click on the switch to turn on Auto-tracking.  

Use the Trips Live Activity feature

On an iPhone to utilize the Trips Live Activity feature for the Current Allowable Expenses:

Important Note: It is only available for iPhone 14 models or above. 

Step 1: Navigate to Mileage

First, navigate to the Today tab and click Track Trip from the Quick Actions section, or navigate to the Menu and tap Mileage. 

Step 2: Begin Tracking your Trips

Now, click on the Track a Trip option, then tap on Start to begin tracking your Trip. 

Step 3: Enter the Destination Address

Then, enter the destination address in the Add Destination section or choose the address from the list having the previous address. 

Note: A Live Activity Message will appear, and Dynamic Island will be displayed on the lock or home screen. 

Note: If, for some reason, your connection is lost, your Trip will remain in the unreviewed tab. Once the connection is restored, you will be able to continue reviewing it. 

Manage your vehicles

Assign a Primary Vehicle

If you use more than one Vehicle, you can set the most used one as the primary Vehicle. 

Tip: You have the option to assign different vehicles when you arrange trips. 

Note:

• Active vehicles can only be used as primary vehicles.
• If you use only one Vehicle, then it becomes your primary Vehicle and there’s not any option to deactivate it. 

On a web browser 

Step 1: Navigate to Mileage

First, go to the Expenses option, then select the mileage option. 

Step 2: Select Manage vehicles

Now, select the dropdown menu next to the Add trip option. Then, select Manage vehicles. 

Step 3: Choose the Vehicle

Now, choose the Vehicle you wish to assign as the primary Vehicle. Then, turn on the Set as the primary vehicle toggle. Lastly, select the Save option and save the changes. 

On an iPhone or iPad (iOS)

Step 1: Navigate to Auto-tracking

First, go to the Menu, then tap the Mileage option. And click on the Auto-tracking option. 

Step 2: Click on Vehicles

Now, in the Manage section, click on the Vehicles. 

Step 3: Choose the Vehicle

Choose the Vehicle you wish to set as primary and click the Set as primary vehicle toggle. Then, click on the Confirm option and save.  

Note: This will not affect your earlier-reviewed trips with your old primary Vehicle.

QuickBooks will now tag the new trips that you take through this Vehicle. 

On an Android phone or tablet

Step 1: Navigate to Mileage

First, go to the menu section, then tap on Mileage. 

Step 2: Click on Vehicles

Now, tap on the +New, then tap Vehicle. 

Step 3: Choose the Vehicle

Select the Vehicle you wish to set as primary. Then, tap on the Set as Primary vehicle toggle and tap the Confirm button; after that, Save. 

Note: This will not affect your earlier-reviewed trips with your old primary Vehicle.

QuickBooks will now tag the new trips that you take through this Vehicle. 

Make a Vehicle Inactive 

If you no longer use your Vehicle, you can make it inactive so it does not appear on your list of active vehicles. 

Note:

• You cannot make your Vehicle inactive if it’s the primary Vehicle. You have to make another vehicle the preferred Vehicle before making it the default vehicle.
• Your existing trips remain associated with the old car despite the fact that it has been ‘archived.’
• You can do exports for specific vehicles even if they are no longer active if you wish to do so. 

On a web browser

Step 1: Go to Mileage

First, navigate to Expenses, then choose the Mileage option. 

Step 2: Choose the Manage vehicles option

Now, choose the dropdown menu next to the Add trip. Then, choose Manage vehicles. 

Step 3: Select the Vehicle

Choose the Vehicle you wish to inactive. Then, select the Vehicle no longer in use option. This will shift your Vehicle to the Inactive Menu of your Manage Vehicles pane.   

If you wish to reactivate your Vehicle, follow the same instructions. Then, choose the Activate option. Your Vehicle will get back to the list of active vehicles. 

On an Android or iOS mobile device

Step 1: Navigate to Auto-tracking

First, go to the Menu, then tap Mileage and click on the Auto-tracking option. 

Step 2: Select the Vehicles option

Now, from the Manage section, tap on the Vehicles option. 

Step 3: Choose the Vehicle you wish to inactive

Click on the Vehicle you wish to make inactive. Then, click on I no longer use this Vehicle. 

Step 4: Save the Changes

Analyze the prompt, then click on the confirm option. This will shift your Vehicle to the No longer in use section of your Vehicles page. 

If you want to reactivate a vehicle, then follow the same steps, then choose Start using again? Your Vehicle will return to the list of active vehicles. 

You can add as many vehicles as you want. Tip: Add information about your Vehicle before you start tracking your mileage. 

Track business miles

Now, once you’re all set up, check out this article on eBetterBooks on How to Record Mileage in QuickBooks.

Note: The accountant can view and download your client’s trip log. If you can’t, it’s because you’re the Primary Admin. You have the option to access the page if you are a firm user. 

Add and edit favorite locations

Now, you can create and manage a list of your favorite locations. This list will auto-populate when you review your trips. 

Step 1: Navigate to Mileage

First, sign in to your QuickBooks Online account. Then, go to Expenses and select the Mileage option. 

Step 2: Choose Manage favorite locations

Now, from the Add Trip dropdown menu, choose Manage Favorite Locations. 

Step 3: Select the location

Choose to add your favorite location or select an existing location to edit. 

Step 4: Fill the location

Now, enter the address in the Address field. QuickBooks might auto-suggest the location as you type. Then, enter a Name for this location, and when finished, select Save.