Can a fuel card save my business money?
Business owners are always keen to reduce expenses. One of the highest costs, depending on the size of your business, could be the fuel payments associated with your company fleet. Whether you are in charge of a fleet of HGVs or you have a handful of sales advisors out on the road, savings on fuel is sure to have a positive impact on your company expenses.
This is where a fuel card can be beneficial. Each employee who drives a vehicle during their working day can use a dedicated card which makes refuelling quick, easy and economical too. Here are six reasons why they’re so effective.
1. Exclusive discounts on fuel prices
One of the prime benefits of using a dedicated fuel card is the opportunity to take advantage of valuable savings and discounts when filling up.
Thanks to the enormous buying power of the fuel card operators, price reductions can usually be negotiated in bulk, meaning that many fuel cards offer significant discounts. These discounts can represent substantial annual savings to even the smallest of businesses.
Bear in mind that many fuel cards often incur a monthly or annual charge, so factor in such costs when assessing any potential savings.
2. Track expenditure
Depending on your choice of fuel card, you may be able to benefit from specific reporting tools that analyse your employees’ fuel expenses. Each card issuer offers a range of benefits, and the level of reporting and type of analytical tools can vary quite widely, so it’s essential to spend time assessing which features you’ll need.
If a breakdown in fuel costs is vital to your business, look out for a fuel card which offers customisable reporting features. Whether you need a snapshot view or a slightly more in-depth reporting tool, you’ll be able to find a fuel card that provides the type of reporting and analytical tools that will enable you to cut business expenses further.
3. Control internal cash flow processes
All fuel cards display how much your company is spending on fuel. Detailed HMRC-compatible reports let you see exactly when and where your employees are filling up their vehicles. Over time, you’ll be able to build up a picture as to how much your fleet’s fuel needs are costing you. Having this information allows companies to plan accurately for future expenditure, enabling effective management of company budgets.
4. No more missing receipts
Selecting a fuel card that connects with company accounting software allows firms to produce weekly or monthly reports quickly. That means managers no longer need to chase employees for receipts and invoices for their fuel costs. With fuel cards, there’s no need to worry about collecting or retaining receipts since transactions are detailed by the card issuer, providing all the necessary details.
5. Save on administration costs
With no need to chase up employees for missing receipts, your business accounting functions will run much more smoothly. You’ll have all the fleet management details to hand exactly when you need them, enabling you to save time and money on administration. And since the majority of fuel cards provide invoices that are compliant with HMRC requirements, there is no need to spend time on preparing this information.
6. Additional cost-effective benefits
Many fuel cards come preloaded with other incentives, in addition to discounted fuel prices when filling up. Some cards offer added-value services such as breakdown cover, reduced toll and ferry payments and even discounts against new tyres and replacement windscreens. Many cards offer loyalty and reward points, which can be accumulated to generate savings against future grocery or lifestyle purchases.
There are a significant number of fuel card providers operating in the UK. Options are available no matter the size of the business, whether you run a large fleet or just a few vehicles. However, fuel cards aren’t your only option if you’re looking for a way to streamline your company fuel payments.
Many companies find that all they need is a prepaid business card that can be loaded with funds so that staff can fill up with fuel or, indeed, make other appropriate and necessary work expense purchases. Soldo provides a unique, customisable prepaid business card that can be pre-funded so that your employees can take care of their fuelling needs without having to resort to using their own funds to do so.
Importantly, Soldo prepaid company cards and expense management systems can be used for other expense types. The prepaid cards offer similar benefits as those provided by fuel cards, such as reduced admin; however, across a far more extensive range of expenses. Rules and limits can be clearly defined to ensure that spending remains in your control at all times.