How a Beverage Leader Cut Admin Burden with IRS-Compliant Mileage Automation

Case Study: A One-Week Pilot That Transformed 600+ Drivers’ Reimbursement Experience

Overview

In 2025, a well-established beverage distributor serving several Midwestern states partnered with Cardata to overhaul its vehicle reimbursement program. With a large mobile workforce and multiple regional operations, the company had outgrown its legacy systems for tracking mileage and administering reimbursements.

By transitioning to Cardata’s platform, the organization modernized its reimbursement structure with a streamlined, tax-compliant solution built around the 463 methodology. Cardata’s approach delivered operational clarity, reduced administrative burden, and significantly improved driver experience and compliance.

The Challenge: Manual Processes and Compliance Risks

Prior to Cardata, the distributor’s reimbursement systems were fragmented. Each region followed its own policy, leading to inconsistencies, compliance risks, and inefficient tracking. Drivers manually entered mileage—often using spreadsheets—and administrative oversight was limited. Finance leaders had little insight into actual costs or usage patterns.

Although the company had implemented another vendor platform in 2023, the solution proved inflexible and did little to simplify compliance or administration. Reporting hierarchy changes still required manual effort, and understanding the tax implications of IRS-compliant reimbursements remained a challenge.

The Solution: Education-First Implementation

Cardata distinguished itself with a hands-on, consultative approach. Rather than simply delivering software, Cardata worked closely with finance and operations teams to educate them on IRS 463-compliant reimbursement structures, administrative best practices, and regional cost index impacts.

This foundational understanding enabled the client to confidently make policy decisions, tailor driver eligibility rules, and implement tax logic with clarity. As one leader remarked, they appreciated the shift from vendor dependency to internal empowerment.

Pilot Program: Real-World Feedback Drives Confidence

Before committing to a full rollout, the distributor launched a short trial with key stakeholders across departments. Participants ran Cardata alongside their existing mileage app for one week.

Key outcomes from the trial:

• User Simplicity: Drivers described the app as “set it and forget it,” with automatic tracking and effortless trip categorization.
• Administrative Visibility: Managers gained real-time access to mileage data without relying on manual exports.
• Speed of Onboarding: Setup for participants took less than two minutes.

The trial allowed finance teams to compare reimbursement calculations under various IRS-compliant models and build confidence in moving forward with Cardata.

Transformation: From Fragmentation to Integration

Following the trial, the distributor formally implemented Cardata’s platform across all participating regions. The transition replaced a complex, manual process with a scalable system that delivers transparency and automation.

Key operational improvements:

• Seamless integration with the company’s HRIS platform for real-time updates to reporting hierarchies.
• Automated mileage audit trails and policy enforcement.
• Dramatic reduction in manual entry and administrative backlogs.

Before and After

Before Cardata:

• Manual mileage tracking across 600+ drivers.
• Risk of audit non-compliance due to inconsistent reporting.
• Platform lacked flexibility and required one-off admin changes.
• Unclear policy structures and varying tax exposure.

After Cardata:

• IRS 463-compliant reimbursement system rolled out at scale.
• Real-time mileage tracking ensures accuracy and reduces fraud risk.
• Integrated hierarchy updates improve speed and reduce errors.
• Clearer driver communications and simplified onboarding.

Conclusion

This beverage distributor’s partnership with Cardata led to a significant operational upgrade. By combining education with modern technology, Cardata empowered the client to move beyond fragmented mileage processes to a unified, compliant, and future-ready program.

The result? Less friction, more visibility, and a more confident team managing a critical part of mobile operations—with no disruption to daily business.