How useful are mileage log apps?

More and more mileage log apps for iPhones and Android devices are entering the market. Tax advisors have tested various apps.

For self-employed individuals and employees who primarily use a company car for business purposes, a logbook is often worthwhile. If it weren't for the paperwork involved. Many find it tiresome to enter the time, mileage, destination, and purpose of the trip in the little book after each trip – and to do so legibly – with a ballpoint pen. So, they prefer to tax the vehicle using the one-percent rule and accept the potentially higher taxes. Or they don't keep the records quite so neatly and risk having to pay additional taxes because the inspector rejects the logbook and applies the flat-rate one-percent method.

The range of free and paid apps is large

So it sounds tempting that more and more mileage log apps for iPhones, iPads, and Android devices are entering the market. The range of free and paid apps is vast, and the programs work differently. However, to date, there is no form of certification from the tax authorities that confirms tax office compliance. One of the important things for the tax authorities is that when printing out electronic records, subsequent changes are technically impossible or at least documented.

The tax consultants of the nationwide tax consulting firm felix1.de were skeptical as to whether the apps could actually meet the strict regulations for logbooks and examined ten common providers, primarily with regard to their auditability and user-friendliness. The tax consultants did not test permanently installed logbooks or hybrid versions such as the Logbook plug from Vimcar. Trips are recorded automatically here.

Eight out of ten of the tested apps probably stand up to the examiner’s scrutiny

At least eight out of ten of the tested apps will likely withstand the scrutiny of a tax auditor, according to the testers. One of the apps ( the study "Logbook Apps Tested" is available for free download here ) failed to create a tamper-proof export file. Another identified incorrect start and destination addresses and failed the tax advisors' assessment. The testers assumed that an electronic logbook is tamper-proof if the app generates PDF files. However, they stated that systems that export their data to a server where the user only has read access are more secure.

The tax consultants also tested the user-friendliness

But the tax consultants were also concerned with user-friendliness. They examined three different practical cases: the self-employed frequent driver who exclusively drives his company car and also uses another private vehicle for business purposes; the family business, such as a tradesman's business or retailer, where the company car is used by several people; and finally, larger tradesman's businesses or courier services with fleets that have multiple vehicles and drivers.

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Self-employed frequent drivers benefit

The result: "The self-employed frequent driver benefits most from a mileage log app," says Andreas Reichert, tax advisor at felix1.de. "Ideally, they have their contacts stored on their smartphone. This allows for timely, easy, and accurate data entry, and the analysis saves a lot of time at the end of the year." The testers' favorites for this target group are "Fahrtenbuch Pro" for Android and "Driverslog Pro" for iOS.

Only recommended to a limited extent in family businesses

However, logbook apps are only recommended to a limited extent for companies with multiple drivers or vehicles, i.e. the classic family business in the trades.

While many of the apps allow multiple drivers to use the vehicle, practical testing has shown that considerable effort is required to obtain accurate logbooks. Reichert added: "All apps have their pitfalls here and are therefore only recommended with reservations."

For such businesses, the testers highlight the products "TripTracker Pro" and "Shared Logbook." "However, these apps should definitely be subjected to a practical test beforehand," the experts advise. For fleets, the tax advisors recommend using a separate smartphone for each vehicle or synchronizing with a cloud, as is offered by the "Logbook" app, among others.

"The biggest source of error in the logbook is and remains the driver"

Regardless of whether one or multiple users are used, proper work instructions for drivers are important in both cases to ensure that the records are kept in compliance with the tax office regulations. "The biggest source of error in logbooks is and remains the driver. Those who want to be on the safe side keep a smartphone in their vehicle or continue to use paper logbooks," says Andreas Reichert. Recording data with an app isn't necessarily faster than by hand, according to the surprising result. Trips now have to be typed in instead of recorded with a ballpoint pen.