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The mileage tracking industry is currently experiencing growth, driven by the increasing number of self-employed individuals and businesses seeking efficient solutions for expense management and tax compliance. Mobile apps dominate the market, offering features like automatic mileage tracking, IRS-compliant reporting, and integration with accounting software. Competition is increasing, with companies focusing on user-friendly interfaces, accurate tracking, and additional features like expense categorization and team management to differentiate themselves.
Total Assets Under Management (AUM)
Number of mobile app users in United States
~Approximately 57.3 million gig workers in 2020
(8-12% (estimated) CAGR)
* Increased adoption by gig economy workers.
* Growing awareness of tax benefits.
* Technological advancements in tracking accuracy.
10 billion USD
AI-powered mileage tracking and expense categorization can automate and optimize processes, leading to more accurate reporting and reduced administrative overhead.
Enhanced GPS and telematics offer more precise and reliable mileage tracking, improving accuracy and reducing discrepancies in reports.
Blockchain technology can provide secure and transparent record-keeping for mileage and expenses, enhancing trust and auditability for tax compliance.
The IRS annually updates the standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. These rates are crucial for taxpayers who deduct car and truck expenses.
The IRS guidelines clarify which mileage tracking methods are acceptable for tax deductions, impacting how businesses design and market their tracking solutions to ensure compliance.
The CCPA grants California consumers various rights concerning their personal data, including the right to know what personal information is collected, the right to delete personal information, and the right to opt-out of the sale of personal information. It impacts businesses that collect and process personal data of California residents, mandating them to implement certain data protection measures and be transparent about their data practices. The CPRA amended and expanded upon the CCPA, introducing additional privacy protections and establishing the California Privacy Protection Agency (CPPA) to enforce these regulations.. The CPRA further strengthens consumer privacy rights in California, building on the foundation established by the CCPA. It introduces new provisions such as the right to correct inaccurate personal information and the right to limit the use of sensitive personal information.
Data privacy regulations necessitate that mileage tracking apps implement robust security measures to protect user data, affecting development and operational costs.
Various states are enacting laws and regulations to clarify the classification of gig workers as either employees or independent contractors. These laws often impact worker benefits, tax obligations, and employer responsibilities. For example, California's AB5 legislation and subsequent Proposition 22 have significantly influenced the gig economy landscape, setting standards for worker classification and independent contractor status, impacting industries like ride-sharing and delivery services. AB5 initially set a strict 'ABC test' for determining worker classification, while Proposition 22 created an exception for app-based transportation and delivery companies, allowing them to classify their workers as independent contractors while providing some benefits. This regulatory landscape continues to evolve, with ongoing debates and legal challenges shaping the gig economy across different states. These ongoing legislative efforts aim to balance worker protections and the flexibility of the gig economy.
States are increasingly focusing on the classification of gig workers which impacts the use of mileage tracking for business expenses.
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