Finding ways to maximize productivity within the workforce and reduce expenses is crucial for business success in these challenging economic times.
For example, fuel can be one of the most overlooked, costly expenses in a business. Many companies have opted for fuel cards as a management and cost savings tool to control this expense.
1. Fleet Cards
Fleet cards refer to the credit cards that enable business owners and managers control and report maintenance and fuel expenses.
Each driver is usually given a unique PIN number for the purpose of making work-related purchases. A fleet card provides cost-control and detailed report that a regular gas card cannot.
With these capabilities, a company can achieve significant savings in fuel expenditure in the initial year of implementing the card system. Even companies that operate a small fleet can benefit from using fuel cards.
2. Preventing Unauthorized Behavior
A credit or gas card does not give a company full control over their drivers’ purchases and this means they can easily fuel their own vehicles or buy items at the convenience store.
On the other hand, fleet cards make it easy for companies to identify and prevent unauthorized behavior. Business owners can set restrictions for each driver.
Restrictions may include the purchases that operators can make, where drivers make purchases and the amount of fuel a driver can purchase each day. For example, fleet fuel cards will not allow drivers to carry out transactions after work hours.
3. Detailed Reports
Fleet card systems are useful for providing reports that outline where, when and what in terms of purchases made by cardholders. This helps to reduce administrative tasks significantly.
Time no longer needs to be wasted on organizing checks for reimbursements or matching expenses and receipts to particular jobs. Fuel card reporting can provide important information such as drivers whose habits lead to wasted fuel and costly maintenance or underperforming vehicles.
For example, if a vehicle burns fuel rapidly in comparison to another one, this may indicate that the driver has bad habits like excess idling.
4. Employee Support
Fuel cards also give employees support. Drivers typically pay for work expenses from their pockets and wait for the company to reimburse then in companies that operate on a cash-only basis.
When drivers have fleet cards, they do not have to use their money to cover work expenses or be concerned about tracking receipts.
5. Vehicle Maintenance
A range of maintenance services are offered by some fuel cards. Card reporting can make it possible for companies to monitor routine maintenance checks for vehicles by setting a requirement that tracks mileage every time the driver fuels up.
Companies can make sure that only approved professionals work on their fleet since the cards restrict where vehicles can be taken for maintenance.
6. Choosing A Card System
To choose the right system according to the unique needs of your business, there are a number of factors that you need to consider:
- Problems with theft
- How important it is for drivers to be able to make purchases that are not related to fuel such as hotel costs and meals
- Whether you need to monitor maintenance repairs
- Whether your business is local or national
- Number of vehicles in your fleet