There are two primary methods to track mileage: the standard mileage rate method vs. the actual expense method. The standard mileage rate is the IRS’s fixed rate for each business mile driven. At the same time, the actual expense method involves recording all vehicle-related costs and deducting the business portion. The more advantageous method depends on factors like the number of business miles driven, vehicle expenses, and business size. Businesses should calculate deductions using both ways to determine which yields a higher deduction.