Budgeting Planning & Strategy

4 Ways Fuel Cards Can Save Your Business Money Every Month

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No one likes admin, but it’s a necessary part of running a business. Fuel cards allow you to control your company’s spending and reduce accounting errors.

They allow you to automate expense reporting and eliminate the need for drivers to keep receipts. Plus, they offer expanded fraud protection and tools to monitor misuse.

Save Money on Every Purchase

A CFN fuel card application is a great way to save money on one of the biggest line items in your business – fuel. Not only do they provide discounts and rewards on every purchase, but they also simplify expense tracking and reporting to help you manage your costs. They are ideal for businesses of all sizes, from small to large fleets, independent contractors, and owner-operators.

Fleet fuel cards are designed to offer you an element of control you wouldn’t get with a normal credit or debit card, making it easy to track spending and prevent fraud. You can implement purchase limits based on dollar amount, product type, location, or driver and vehicle IDs to ensure your employees only use the card for business-related purchases.

Additionally, most fuel cards require drivers to enter a Driver’s Identification Number when they swipe the card at the pump so you can see who’s buying what and where. This helps protect against unauthorized use or theft and provides you with the information you need to make smart business decisions for your company.

In addition, fleet fuel cards come with detailed reports that can be used to monitor and compare spending and simplify IFTA tax calculations. This is especially helpful for businesses constantly on the road and must manage expenses daily.

Save on Fuel Station Fees

Often, the biggest expense for transport businesses is fuel costs. With the price of gas continually rising, keeping up with expenses is a challenge. A fuel card is a great way to help keep your company within its budget and reduce unnecessary spending by monitoring and controlling your fleet’s consumption.

A fuel card works much like a credit or debit card and requires your employees to enter their driver’s license number, unit or trip number, and odometer reading before purchasing fuel. This provides advanced tracking of the purchases made with each of your vehicles and can help eliminate employee fraud and prevent them from using the card for personal purchases.

Another benefit of a fuel card is that it offers detailed data and reporting, which helps small businesses understand their fleet’s consumption patterns. This allows them to make adjustments and save money in the long run. If employees consistently consume more than their peers, this information will allow you to address the issue directly.

When selecting a fuel card for your business, choose one that will provide the best savings for your industry and location. For example, if your team operates locally in a specific city, you’ll want to select a card that works only at the stations that your drivers can access easily.

Save Money on Maintenance

Fleet fuel cards are a great way for businesses to save money on all the expenses related to running vehicles. Whether it is fuel, vehicle maintenance, or insurance, these costs often comprise a large portion of the budget. Fuel cards can streamline these costs and make them easier to manage for businesses of any size.

The most obvious advantage of a business fuel card is that it makes buying fuel much simpler for transport companies. Employees no longer need to withdraw cash or wait in line to receive VAT receipts, which can take up valuable time. With a fuel card, drivers can pay at the pump and go on their way, saving them significant time.

Moreover, a fuel card lets the company track purchasing trends and identify wasteful spending habits. Limiting the types of purchases on the card, such as food and beverages, can significantly reduce unnecessary costs. The card can also be connected to a driver’s ID, making it easy for management to monitor unauthorized spending and suspicious transactions.

Finally, using a fleet fuel card allows the business to receive a consolidated monthly invoice for all its expenses, which can greatly simplify VAT returns and eliminate the risk of double-claiming. This can save the company thousands of pounds in VAT savings, which can be used to fund other important areas of the business.

Save Money on Insurance

One of the most unavoidable costs for a trucking company is the cost of diesel fuel. Saving money in this area can drive up profit margins for the entire business. Fuel cards help you control spending by limiting employee access and tracking all the fuel purchases your fleet makes. This allows you to identify inefficiencies and make adjustments as needed. For example, finding one driver using more fuel than others in your fleet could indicate an inefficient driving style. Fuel card reports can easily highlight this to allow you to arrange training for your drivers.

Another way fuel cards can save your business money is by simplifying VAT claims. You can claim the full VAT for every fuel purchase with a single monthly invoice. This is much simpler than adding up individual receipts or searching through previous business invoices.

When choosing the right fuel card for your business, it’s important to consider all the features available. You’ll want to compare fuel discounts, card security (chip & PIN technology), and real-time transaction monitoring. It would help if you also looked for a provider with an expansive network that aligns with your operating locations and fleet size. Be wary of great introductory discount rates that drop quickly, as these can be difficult to maintain after the first few months.

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