I have a small business which involves some driving to clients using my personal vehicle. I track both my individual auto expenses and my mileage in GNUCash but so far have only been using the standard mileage deduction. I also have a separate set of books in GNUCash for my personal accounts. Even though I'm currently a single member LLC I may move to S-Corp status.
What is the best way to account for my mileage expenses in GNUCash?
Right now I have an "Owner Equity" account under Equity. When I invest money into the business or take money out it goes into this account.
I also have a Mileage Expense account. For any day that I drove for work, I calculate the miles driven for work times the IRS standard deduction and credit it to my Mileage Expense account. Since there's no actual money changing hands and this is an expense I'm incurring personally I use the Owner Equity account as the transfer account.
Does that make sense to do it that way? Is there a better way to do it?