Your company needs an upgrade with regards to how you manage your employees’ fuel expense, and what better way than to get fleet cards. A fleet card is a card issued to your employees, which they can use to purchase fuel for business trips and other vehicle related transaction. Most companies don’t take advantage of this feature, keeping the old system of letting the employees pay for the fuel and reimbursing them at a later time, commonly referred to as “Pay-and-Reclaim.”
What they don’t realize is that this system of fleet management can get a little messy after a while. Once the fleet begins to grow and more transactions are done daily, they would experience problems which may arise from the flawed system. Either the company will underpay the employees’ reimbursement, or the employees will overestimate their fuel expenses. This means the company would either sacrifice their employees’ loyalty or raise their expenses.
Fuel cards such as Motorpass Fleet Card offer various ways to manage and control company’s fleet, no matter how small or large it is. Not only do you keep your employee’s loyalty, you also reduce cost caused by overestimated costs. On top of that, fleet cards also offer an organized way in managing, monitoring, and controlling your fleet. Here are 5 advantages of getting fleet cards for your company:
You make your employees’ lives easier.
With the old system, employees have to shell out money to pay for your company’s fuel, which basically means they are using their own money to do errands for your company. When it comes to reimbursing their money, they often inflate their expense to compensate themselves for the inconvenience caused by the pay-and-reclaim system. Fleet cards are seen as an accurate and organized way to pay for your fleet’s fuel.
You reduce administration costs.
Since fleet cards offer automated and fast transaction and record keeping, you eliminate the cost of having to process expense claims manually and the unnecessary extra effort your employees exert in having to record and keep their fuel receipts. With a fleet card, there is just one record. Your employee no longer take the burden of keeping any receipts for reimbursements, nor do you have to waste time processing your employees’ reimbursement claims.
You are able to collect VAT receipts.
Most employees submit expenses claim without a receipt, therefore making the VAT unrecoverable. With a fleet card system in place, you make sure you can claim the VAT in your fleet’s fuel transactions.
You will reduce your fleet’s fuel cost.
With a fleet card system in place, you are able to monitor and control any inefficient fuel use by your fleet. Since a traditional system encourages your employee to splurge on fuel since they are reimbursed in full, an automated system that records their transactions can help you in keeping your fleet fuel consumption in the most efficient level.
Access to fuel discounts.
Not only do fleet cards provide nationwide coverage, they also partner with major fuel outlets to give users a significant discount.
This reduces your fleet’s expense, thus giving you more capital to spend on other departments of your company.