Whether you run a fleet of one or one hundred, refueling can become a major concern. There are a few methods for handling the refueling process, including reimbursements, cash payments, and corporate cards. Each of these methods come with their own problems that can cost your business time and money. That's why so many companies are giving their fleets fuel cards.
Here's why your company should be using a fuel card, too.
Corporate cards are easy to abuse. Automotive Fleet points out that while corporate cards are convenient, they are more susceptible to fraud. Drivers may put their own fuel costs on the corporate card (even accidentally) or add on purchases made in the convenience store.
Fuel cards can help you limit the potential for fraud and accidental purchases by allowing you to set rules for who, when, and what drivers can buy. For instance, with a fuel card, you can set purchasing hours (such as 9-5, Monday to Friday) so there are no late night or weekend purchases.
You can also dictate the type of fuel that can go on the card, such as diesel only. This kind of control is only available through fuel card programs and can cut way down on fraudulent expenses.
No one likes dealing with receipts and expense reports. Corporate cards make that a necessity. Your drivers will have to keep track of all their expenses and turn them in on a weekly or monthly basis.
Your admin team will need to comb through those receipts, making sure the purchases are valid and accounted for. This process can take hours.
Fuel cards provide tracking and reporting that can eliminate the receipt process and free up your internal teams to focus on other tasks. That's a time and money savings.
Construction Business Owner says fuel can be one of the most overlooked expenses in a business. It's one a business can manage, though, with the tools available through the use of a fuel card.
When you use a fuel card, you can pre-purchase fuel at wholesale prices. That means you'll get a much better per gallon rate than what you'd pay at the pump.
Many fuel cards will tie in with a loyalty card program, too, so you can still get the benefits of the loyalty program without giving up the discount on your fuel.
Fuel cards are also widely accepted at most gas stations. That means your drivers won't have to travel extra miles just to reach the nearest approved refueling station.
Companies that didn't use a corporate card often relied on petty cash to cover refueling expenses. That meant drivers had to carry cash on them, which created several different problems.
First, it's a safety issue. Drivers who carry cash are more likely to become victims of theft. Cash is also easily misplaced, increasing your costs for fuel as you have to replace the stolen or missing money.
Accounting for cash is also a nightmare, as it means you need receipts and other proof of purchase for accounting purposes. Eliminating the use of cash for refueling can be a big advantage for your business' expenses and cash flow.
Fuel cards can provide automatic reports on fuel usage, saving fleet managers time and trouble. Fleet managers get miles per gallon information for the entire fleet and the ability to closely monitor month-to-month usage.
This can tip you off to efficiency issues within the fleet, such as maintenance needs or poor driving habits. You can quickly spot trends, too, such as which vehicles in your fleet are the most fuel-efficient and what drivers are filling up more often.
Ready to switch your drivers to fuel cards? Talk to the Wilmar team about our partnership with Wex and how we can help you find the right fuel card solution for your fleet.
Picture Sources: Wexinc.com