Fuel Card: How it can Benefit Your Small Business
If you type “fuel cards” in Google trends, you would most likely see a graph like the one below.
As you can see, fuel cards have been a topic of high interest over the past year all over the world.
Fuel cards for small businesses can make a huge difference in many areas of business operation. These range from efficient transport fuel-expense monitoring to ensuring vehicle drivers’ safety.
Before we take a look into five areas where fuel cards for vehicles are benefitting businesses, let us explain what a fuel card is.
What is a fuel card?
A fuel card is a credit card or a charge card. But unlike a regular credit card, you can use it to pay for vehicle fuel and repair related services only.
The first benefit of fuel cards for small and medium businesses we are going to discuss is-
Efficient tracking of fuel expenditure
Tracking fuel expenditure usually requires analyzing credit card report or collecting receipts from the drivers of your business vehicles. Furthermore, you would need to record those numbers separately in your books.
With fuel cards, that tedious process becomes unnecessary. All you have to do is, collect the fuel receipt from your account in the fuel card provider company. Every time one of your business fleet drivers pay for fuel, you would know immediately how much fuel has been bought at what price rate.
Along with efficient fuel expenditure, fuel cards also facilitate-
Easy tracking of your small vehicles
The moment one of your business vehicle drivers pay for fuel, you would immediately know where your vehicle is along with the amount of fuel he/she paid for. Such an easy vehicle tracking facility would not only let you know the location of the vehicle but also tell you whether it is en route to its destination. This way, you spare yourself the use of any expensive vehicle tracing facility. It not only saves you money but also provides you peace of mind.
Next, we would be discussing the benefit of fuel cards that would interest you the most. It is-
Better control over fuel and vehicle-related expenses
This is probably the most exciting feature of fuel cards for businesses!
With a fuel card, you can place a maximum limit on fuel and vehicle repair related expenditure. Do you know how that benefits you? Well, you no longer have to worry about your business vehicle fuel cost to exceed the budget! This feature also informs which vehicle and which driver has reached the assigned fuel expense limit.
Besides, you also spare yourself the anxiety of your vehicle drivers listing any of his/her personal expenses as a fuel cost with doctored fuel receipt.
As a business owner, you would also want to ensure the safety and security of your vehicle drivers. That is another benefit of fuel cards we are going to discuss.
When you stop allocating cash amount to your vehicle drivers and make the switch to fuel cards, you are taking an effective and responsible step to ensure their safety and security.
Well, since your drivers would no longer be carrying cash for fuel expenses, they are a lot less likely to be robbed or mugged. Not only would you be slashing down their odds of being hijacked but also ensure smoother delivery operation! The sense of security would reduce anxiety on both the management end and driver end of your business.
The last benefit we are going to discuss is-
Admin processes get streamlined
Since fuel card reports give you detailed fuel expenditure for each of your business vehicles and drivers in real-time, your management process saves precious time it would have spent collecting fuel receipts from your business fleet drivers. This is a significant benefit as you would have greater time to focus on business growth! Besides, as your management process gets easier, you would need fewer people analyzing your business fuel expenditure. That is a surefire profit margin booster!
You should have a very clear idea about why you must make the switch to fuel cards. As a business owner, you realize full well the importance of evolving to reap the benefits of technology. Fuel card offers an amazing opportunity for your business to reach that evolution milestone.
In case you have already decided to get a fuel card for your business, do check iCompario out. Make the switch and provide yourself the dose of peace of mind that you so rightfully deserve!