Last Updated on Feb 28, 2020 by James W
When operating fleet vehicles for a small business, costs can quickly add up. All small businesses know the importance of making savings wherever possible to improve business efficiency and the overall bottom line. One way to save money and keep track of expenses is by using fuel cards from a fleet management company. Below we outline five ways that fuel cards can help small businesses save money on their fleet’s fuel needs.
1. Discounts on pump price
The most obvious benefit of fuel cards is the fact that most provider’s offer discounts on the pump price, saving you money every time you fill up. However it is important to note that while some provider’s do not offer discounted fuel, they make up for the saving by not adding any surcharges, which often cancel out pump price discounts from some fuel cards.
2. Administrative ease
One major advantage of fuel cards is how much administration time small businesses can save. Fuel card systems generally provide one monthly itemised invoice, with all card charges listed. This not only streamlines accounting functions, but also lets staff stay focussed on running the business, rather than getting bogged down with fleet administration.
Having fuel cards also benefits your fleet drivers, as they are not required to pay for fuel out of their own pocket and seek reimbursement at a later date. They also don’t need to bring a massive stack of receipts to the fleet manager every month.
3. Transparent costs
As your monthly fuel card invoice is fully itemised, it allows you to quickly see how much each vehicle spent on fuel, which service stations they used and how often they filled up. Being able to see how much each vehicle is costing you can help curb wasteful habits for your business and drivers, helping you further reduce fuel costs.
4. Reduced risk of fraud
Due to the detailed reporting that fuel card systems provide it is easy to highlight potential areas of fraud such as shop purchases, high cost vehicles and actual fuel usage compared to manufacturer’s expectations. Because the system allows business owners to easily track charges and spot any fraudulent activity, it could potentially save small businesses thousands in the long term.
5. Improved efficiency
The fantastic thing about fuel cards is that the reporting your receive gives you much greater control than using a reimbursement system. Being able to easily track your spend, usage, mileage, etc. makes it easy to improve fleet practices to ultimately save businesses money. Managers can look at route planning, driver schedules and other measures to improve fleet efficiency.
When considering ways to save on small business fleets, fuel cards are a cost-effective solution to help cut costs and improve efficiency. Through discounts on pump price, easy administration, transparent cost, less risk for fraud and improved efficiency, implementing a fuel card system could result in massive savings for your fleet. Click here to find out more about what fuel cards can do for your business.
Kirsten Brent is the marketing assistant for Fleetcare, one of Australia’s largest privately owned fleet management and fuel card companies. Catch Kirsten on Google+!
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