How Allstar can help manage your company’s fuel expenses
If you’re cracking under the weight of your fleet’s fuel expense claims, Allstar software can ease the pressure by automating the process.
The amount of admin involved in managing your fleet’s expenses can be a real headache, especially if you have to manually log the mileage of each driver, separating their personal and business miles armed only with a stack of receipts and a calculator.
In conjunction with one of our fuel cards, expense management software such as our Business Mileage Monitor (BMM) can help fleet managers accurately track and record employee’s fuel usage. This HMRC-compliant software works in conjunction with either of our fuel cards, helping you to reduce the administration time for processing any claims.
Why it’s important to accurately manage fuel expenses
Keeping an accurate record of fuel expense claims is vital when budgeting for businesses of all sizes. Regularly reviewing these claims is the best way to keep on top of how many accrued miles your fleet has, meaning you can quickly identify any unnecessary expenditure and work out ways to cut costs.
No matter what industry you’re in, regular and accurate tracking of your fuel expenses has the following benefits:
- Increased awareness of company spending
- Improved management of finances and cash flow
- Helps to adequately prepare tax returns, which could even lead to tax rebates
- Reduces financial pressure on employees
- Plays a crucial role in calculating the profitability of your business
As a fleet manager, it’s important to identify under-performing drivers or inefficient vehicles, and take the necessary steps to make them more cost-effective, which could involve sending drivers on an eco-driving course or replacing older vehicles. You may even find that claims aren’t purely filed for petrol and diesel expenses, and you may have to keep track of other expenditure, such as parking charges and maintenance.
The trouble is, keeping on top of costs and ensuring fuel expense claims are correctly paid can be tricky if you use a pay and reclaim method – not only is this system open to abuse from less scrupulous employees, it can have a big impact on the personal finances of your drivers if mileage claims aren’t paid promptly.
Tackling your business’s expenses
In a recent study we published, we found that over half (57%) of drivers who regularly travel for business have suffered personal financial difficulties as a result of paying for expenses out of their own pocket, and almost two-thirds (62%) want managers to take more responsibility for paying expenses before or during their trip.
Around a third (31%) of employees complained that having to use and claim back their own money was the most annoying aspect of travelling for business, while a staggering one-in-ten (11%) employees find the process so frustrating that they don’t even bother to claim back all that’s owed to them – hardly surprising when you consider employees spend an average of 90 minutes each month filling out expense forms.
One of the biggest problems when it comes to claiming back expenses seems to be keeping hold and keeping track of paper receipts, with around a third (35%) saying they struggle to keep hold of them, while nearly half (44%) find the process of collecting, keeping, and submitting the receipts too frustrating to keep on top of.
And if you think this is just a problem for your employees, then think again – a quarter (26%) cited a poor expenses system as the main reason for leaving their job.
If you don’t keep on top of expenses and reimburse your drivers within a reasonable time frame, you could find your business struggles to hold on to its existing employees and may not be able to attract the best new talent.
Why choose a fuel card?
The first, and most obvious, benefit of a fuel card is that it takes the responsibility of paying for refuelling away from your workforce – drivers simply fill up and pay using any one of our cards, each of which have been designed to meet the specific demands of different fleets, and can be used at any one of 7,700 conveniently located UK fuel sites.
Both of our fuel cards offer the following benefits:
- Breakdown of all drivers’ fuel card transactions, including an itemised VAT invoice
- Safeguard against card fraud with built-in Chip technology
- Save on every litre at selected Discount Diesel sites
- Separate drivers’ private and business mileage through accurate recording, when the Business Mileage Monitor (BMM) is included
By opting to have BMM as part of your account, it can benefit drivers by completely removing the need to log their business miles, as all business and private mileage is separately recorded and the data sent on to you.
If you manage a national fleet, you can also choose to opt-in for the M6toll service, which gives drivers the ability to use their Allstar fuel card to pay all M6 toll fees. This means there will be fewer expenses and VAT claims to process and less paperwork for you, saving you time and money.
How can Allstar’s products benefit my fleet?
In addition to simplifying things for both you and your employees, using both our fuel card and optimising your journey track with our BMM system can also help your fleet work more efficiently and save your business money.
Effective mileage management
Findings from a study the Energy Saving Trust conducted in 2015 shows that effective mileage management can reduce the average mileage of a vehicle covering 12,000 miles a year by around 10%, which can save up to £150 in fuel costs, assuming 40mpg and a fuel price of £1.09 per litre, net of VAT. Taken in isolation, this may not sound like much of a saving, but if you manage a fleet of just ten drivers, this quickly adds up to a saving of £1,500 a year. When you join a national fuel network as wide as ours, a 10% reduction in your fleet’s mileage is very much achievable, when you consider they won’t have to travel far at all to fill up.
The findings also show that that 10% cut in mileage could also free up as much 30 hours for other work which, at a payroll cost of £30 per hour, can see your business saving an equivalent of £900 per employee. Again, when taken across ten employees, this stacks up to a substantial saving of £9,000.
Access to the UK’s largest fuel network
With an Allstar fuel card, you don’t have to travel far or divert off route to find a fuel site. Our fuel cards have access to over 7,700 sites nationwide, the UK’s largest fuel network, including all major low-cost supermarkets such as Asda, Sainsbury’s, Tesco and Morrisons.
Access to additional services
Getting an Allstar fuel card also opens your fleet up to the additional benefits, including ServicePoint, which provides fleet servicing, maintenance, repairs and MOTs to help keep your vehicles working as efficiently as possible.
With Fuel Assist and Pay-as-you-go Roadside Repair, both from the AA, you can rest assured that if one of your vehicles breaks down or is misfuelled you’ll be covered. And, if you want your business to be more environmentally responsible, our product, Ecopoint, lets us work in partnership with Forest Carbon to create a simple and effective way to help offset your carbon footprint and meet corporate social responsibility commitments.
With so many benefits for both you and your employees, it’s easy to see why 38,000 businesses and 1.1 million drivers are part of the Allstar fuel card family.
How to join our fuel card family
Now you know exactly how a fuel card can help your fleet, it’s time to get on board and start reaping the benefits of Allstar membership.
To get your Allstar fuel card, just fill in this online form, or call our team on 0345 266 5101. Alternatively, click the ‘Request a call back’ link at the top of the page and we’ll give you a call at a time that’s convenient for you.