Optimising the profitability of your fleet with business fuel card accounts
Posted on: 31 July 2017
If you have a large fleet of cars on the road as part of your business model it is important to manage and optimise your fuel usage and maximise the efficiency of your fleet. Here are a few ways that using business fuel card accounts can help to keep your business running at full throttle!
Quick payments
When employees have to use their own credit cards and claim reimbursements you always run the risk that they won't have enough cash or credit limit to keep their car on the road. With a business fuel card account, you have a company wide limit that ensures that any time that an employee goes in for fuel, they can fill up the car and get back on the road quickly. While this might seem like a relatively small saving, reducing fuel stops and improving payment time can pay big dividends over your entire company over the year.
Clarity in usage trends
If you rely on employees to enter reimbursements, you run the risk that people may not enter reimbursements quickly and you may not have a clear idea of fuel usage trends. Not only can this help you to identify potential maintenance issues in the fleet but it can also help you to see if other improvements could be tried, such as reviewing the usage of the top fuel users in the organisations, or helping you to see if there would be benefits in switching to newer cars and/or hybrids. A business fuel account can allow you to have trends of fuel usage and allow you to establish trends between days, months and different employees so you can identify the potential for improvement.
Reducing and improving administration
Many organisations that have a heavy fuel usage can access tax benefits associated with running cars including credits for fuel tax and credits for GST (goods and services tax) on tax. When your company has a range of vehicles on the road, receiving consolidated accounts from the fuel company can help to simplify your administration and ensure that you get all tax benefits that you are entitled to. Business fuel accounts also eliminate the need for employees to enter claims for fuel and supervisors to approve these claims which simplifies your internal administration at all levels.
If you are looking to improve your fleet fuel management and reduce the amount of administration required in fueling cars it is a great idea to explore whether a business fuel card account is right for your business.
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