Are you troubled by the rising cost of fuel prices that means you have to reimburse drivers more frequently than before?
But how can you be so sure that the company’s car fleet is using the amount of fuel that drivers claim? You weren’t there to physically check the transactions; all you have is a receipt which could be for anything – food, cigarettes, or even alcohol.
There’s no guarantee that drivers won’t misuse traditional credit cards that you have assigned for purchasing fuel. So, we recommend contacting a reliable company and issuing fuel business cards for every vehicle. This will prevent you from overspending and use the business account for essential transactions only.
What Is A Fuel Card?
You’re bound to incur a high fuel cost when you have a large fleet of vehicles plying the roads for business operations. The unpredictable nature of gas prices is even more problematic, usually influenced by external factors beyond anyone’s control.
So, there’s no way to plan for gas prices, but that doesn’t mean you should keep paying steep gas bills. Because irrespective of changing prices, drivers could be wasting gas or using their credit cards for additional services.
To keep a tab on fuel prices and vehicle maintenance, use gas or fuel cards for businesses, corporates, and employees.
Corporate Fuel Cards For Employees
Using corporate fleet fueling cards helps you fix a budget for gasoline expenses and get detailed information about how truckers or drivers are using the company’s money. Since there is no need to carry cash at the gas stations, it becomes easier to pay the card company directly instead of reimbursing employees.
Moreover, using fleet cards will allow employees to pay for additional service costs, such as repairs, maintenance, or purchasing engine oil. But how are they different from regular credit cards?
Unlike credit cards, fuel cards reveal what was purchased, where the transaction was made, and for which vehicle. Details of all the transactions are also mentioned in monthly reports provided by the card company.
Advantages Of Using Corporate Fleet Cards
Regular credit cards come with a payment slip for every transaction, which you must manually catalog and calculate at the end of each month. But fuel cards aren’t tedious to use, as the entire process is automated and calculating expenses is easier.
This reduces the chances of human errors, which prevents a truck or vehicle driver from committing fraud.
2. You Have The Power
You can control how drivers use a fuel card without monitoring their daily movements. It proves particularly useful when you manage a trucking company with several drivers covering large distances regularly.
Just restrict the purchases that can be made with the card, limiting them to basic amenities like diesel or petroleum. Also, if you know the route, order cards that are accepted only at select gas stations.
3. No Unexpected Expenses
The automatic controls reduce the chance of unexpected expenses since you can set dollar amounts, manage time frame controls, or impose gallon limits. You can even select the time of the day or the days of the week when drivers can make purchases.
Some of the aspects on which you can impose restrictions include –
- Fuel type
- Fuel amount
- Vehicle parts
- Lubricants and other vehicle fluids
- Daily merchandise
- On-road assistance
4. Easier To Monitor
Thanks to real-time monitoring, there’s no chance of missing even a single transaction when using fuel cards. You can track expenditures on individual vehicles 24/7, so we recommend ordering cards for each employee for efficient bookkeeping practices.
Just ask the card company to automate the process of sending receipts, which reduces the need for manually entering the data into the account books.
5. Transferring Funds
We mentioned how a fleet management company could transfer funds to the card dealer in seconds to clear all pending dues. But the same is true when drivers need to make emergency payments and there’s no balance left on the cards.
You can approve and complete the transaction without any hassle to avoid needless delays and get the drivers back on the road.
Every time a driver makes a transaction, they must enter their unique ID and odometer reading. Once the transaction is made, these details appear on the receipt to help you calculate the expenditure per gallon and mile. This ensures you won’t exceed the company budget and can generate more quarterly returns.
Some business cards provide additional perks, such as zero annual maintenance charges and discounts on transactions. However, this isn’t true for all business cards, and it’s important to talk to the card company about your needs.
In most cases, a certified company levies nominal maintenance charge each month. And depending on the size of the fleet, you can choose a card that is accepted at various outlets. Also, when ordering cards for several employees, the company may supply the cards at reduced prices.
At times you even get rebates on car servicing and maintenance, including washing and tire changes.
Convenience Is A Driving Factor For Gas Cards
Business fuel card programs aren’t just a means to keep tabs on drivers; the convenience they deliver is unmatched.
As a corporate business manager, you will know that it’s not just petrol and diesel cars transporting goods. Electric vehicles are on the rise, and the latest corporate cards also help when recharging e-vehicles to reduce expenditure.
Moreover, fuel cards guarantee safety during transactions since you don’t need to generate a traditional credit card for drivers. All your personal information remains under close wraps, except for the details of each vehicle.
It’s safe to say that you won’t need to spend sleepless nights with the accounting team at the end of each month anymore to tie loose ends. Just keep the receipts or e-bills in their respective folders to manage your business expenses efficiently!