Expense management advice for managers of small fleets
Heading a business might take you on the road more often than you’d like. The same goes for employees; they may be in a near-constant state of meetings, deliveries or pickup runs around the country. To control your business expenses, it’s vital to keep a close eye on how much they’re spending on fuel and other expenses – staying in control is essential to good fleet management.
Let us examine seven easy ways that you, as a fleet manager, can organise and control your travel expenses. From cost incentives to a broader understanding of your team’s behaviour.
- Install GPS tracking
To be certain that a vehicle’s journey mirrors the fuel claims your drivers are making, GPS installations are a smart move. They’ll store and relay all the miles your fleet is accruing. Some companies (delivery ventures, for example) may already see this as a key component, but any business with a fleet can benefit from tracking software.
- Consolidate your travel costs
Hotels, insurers and car hire businesses like to stay competitive. If any of these travel costs apply, consider negotiating with the suppliers to secure favourable rates based on volume of business. Clarify how many employees use these services, and how often, to present a clear case for preferential rates.
- Recognise a low-expense history
Why should drivers go below the limit you’ve set for mileage if there’s no incentive to? Try to foster a reward culture for those who follow your expense management advice and save more cash on their trips. This could be a simple acknowledgement, or a small prize to the biggest saver each month.
- Only pay for what you need
There’s no sense in paying for a larger, flashier form of transport if your business doesn’t need it. Talk to your team and ask them, periodically, how well the vehicle deals with its duties over time. That way, you’re always in-the-know; spending too much on vans, trucks, cars or motorcycles that don’t match your exact requirements is a waste of money.
- Explore repair diagnostics
Faults and breakdowns will happen: there’s no getting away from it. Timing is everything where fleet maintenance is concerned, which makes monitoring your fleet’s condition important. Diagnostic tools are widely available and can be plugged straight into your OBD-II system. They can scan for anomalies and give you a special reference code, determining how urgent a repair is. Subsequently, you won’t suffer from vehicles being out-of-action when they don’t need to be.
- Invest in fleet management software
There are several advantages to using fleet management software. Digital solutions are getting smarter, broader and more exact in their analysis of vehicle costs. Search for a tool that composes your expense history – over days, weeks and months – in an easily digestible user interface. Knowing where the funds have been spent, no matter the complexity, is central to long-term cost control.
- Switch to a fuel card policy
Mixing fuel payments in with the rest of your expense claims can cause headaches. A fuel card not only eliminates the stress of separating mileage costs; you also benefit from special offers, which result in discounts on your diesel or petrol. What’s more, an Allstar fuel card has exclusive reductions on toll fees, repairs and breakdown cover.
These are just some of the ways in which you can cut travel expenses for smart fleet management. A fuel card is a sensible place to start – contact us today for expense management advice, or check out our various schemes for yourself.