How Trucking Companies Can Cut Costs with Fuel Cards
Fleet companies benefit from fuel card programs. These programs help companies control their expenses while boosting operational efficiency. Drivers won't need to track receipts or wait to be reimbursed because the company pays for the fuel upfront.
Furthermore, fuel cards such as those offered by the Motor Transport Alliance make it easy to track expenses. Business owners can see each fuel purchase's date, time, and location. They can also determine the driver, vehicle, and odometer entry and track the purchased fuel product. Having easy access to this information streamlines taxes. What benefits come with these fuel cards?
Convenience
Truck owners and operators know fuel accounts for a significant portion of their expenses. A fuel card provides discounts to help save money while eliminating the need to provide advance fuel money. It is also easier to manage cash flow and track spending.
Fleet companies have control over fuel costs when these cards are used. The fleet owner may set limits and restrictions on drivers. They can monitor odometer readings to see where their drivers travel and receive detailed reports covering all spending. With this information, the fleet owner can optimize routes, boost fleet efficiency, and reduce operating costs.
Truckers appreciate fuel cards because they eliminate the need to carry cash. Furthermore, they don't have to pay upfront and wait to be reimbursed. The company saves money on administrative costs associated with providing these reimbursements. The use of these cards helps to reduce fraud.
Discounts
In addition to fuel discounts, these cards often give truckers access to other savings. The card providers negotiate discounts on lodging, vehicle services, and other items commonly used by truckers. Any money saved on these purchases can be reinvested in the company, and most card providers don't charge transaction or credit card fees. The trucking company saves on these expenses and will watch its profitability increase.
Fleet owners need to learn how each card works. Some offer point-of-sale pricing, where the fuel price is discounted when the purchase is made. Other card programs send the fleet owner a check for the discounted amount at the end of each month. These cards can be used at any fuel station, so drivers won't need to search for a station that accepts the card.
Fuel is one of the biggest expenses for any fleet company. Keeping these costs under control helps increase a company's profitability. It would be nice if every company could eliminate the need for fuel, but that isn't happening, so they must find discounts wherever possible to cut costs and see their bottom lines grow.
Taxes
Fleet owners should look for a payment card that handles International Fuels Tax Agreement (IFTA) reporting. Consolidated reports reduce the time needed to handle accounting tasks. The company won't be required to keep and organize paper receipts because all transactions are uploaded into the accounting program. Furthermore, the card restricts drivers' spending, so fleet owners spend less time reviewing purchases.
Reports
Fraud is a concern for any business owner. Fuel cards come with a single card and pin for every driver, so the company knows who is spending money and what they are getting. The fleet owner knows these cards will reduce or eliminate unauthorized transactions. Internal theft is minimized, and drivers are more accountable for their spending.
Every trucking business knows the high cost of fuel today. They need to take advantage of any discounts available, and a fuel card is one of the best ways to do so. The company will see an increase in profit margins and a reduction in other operating costs. They can gain a competitive edge in the industry, which every company wants.
