When I was employed at a consulting firm, I was typically asked to track my mileage so that I could get reimbursed. It wasn’t always clear to me if my boss billed the client for the mileage consistently. Now that I’m self employed…
When driving for a consulting project is it customary to bill the client for time spent driving and/or mileage for miles driven? At the current IRS rate of $0.655 per mile, bidding incorrectly can add up to a lot of money. Thanks!
I have a feeling this is something akin to “free shipping”. Point being I’d either just eat the cost or build it into my fee.
Driving for a consulting project? 100% need to just hide those costs into your fee I couldn’t imagine a consulting line item for ‘local ground’ lol
It would be for T&L expenses, billed at cost.
In my industry it’s 100% normal to charge milage. I don’t charge if it’s a local job and I’m driving less than 30min. Anything over that gets charged milage and drive time. I have some customers that I drive an hour and a half and 90 miles one way, I’d be losing out like crazy if I didn’t charge. If I have to fly for a job or stay in a hotel, I charge the client for all of that and per diem. I do charge half rate for my travel time since I’m not actually working. There is a trend to move to full rate for everything though, which would be nice if it catches on. That being said not all industries have the same mentality when it comes to charging for travel.
Interesting question. I’d say over the avg commute time in your area is chargeable. But as others have said, if it’s not over an hour just find a way to bury it in your other services.
Would either bake it into your fee or do a flat client dependent “travel fee” since aside from the cost of travel you have to think about the opportunity cost of time spent traveling when you could be doing something that generates revenue.
I have a fee that I quote clients and I always tell them if we hit $X benchmark we will waive that fee.
When I travel, I bill for transportation to and from airport, airport parking fee, air fare, accommodations, a per diem, car rental and fuel or limo, plus my hourly fee.
I worked for a law firm. They had fixed rates for travelling to each court house. And they charged way more than the IRS minimum. Plus the actual time on the road. But if billing you charge more like now 1.50-2.50 a mile. In mine where I travel its like 1.50 a mile. or what ever the Uber rate would be. Came from a client who wouldnt pay the mileage and then only the .55 IRS rate. So malicious complianced them and took Ubers everywhere. Like the 60 miles to the airport. 33 bucks IRS , 90 my rate or 115 Uber. They were ok with the Uber.
I learned to bill like a lawyer early own. And when challenged I always reply “Well that’s what your lawyer will charge if you dont pay the bill. So…”
I usually factor in the time Im sitting in my car driving, plus a certain amount for fuel, meals, etc. I do keep track of the milage, and claim it.