Fuel Cards – 5 Benefits To Your Business

Fuel cards are similar to business credit cards and work in the same way.  Fuel cards are becoming more popular – they eliminate the requirement for drivers to have cash when they’re filling up and improve the overall security.

Additionallly having a business fuel card accounts will help you manage your fuel costs, keep track of your fleet and simplify your management procedures.

Five benefits to your business from using fuel cards?

Improved cash flow – you pay for fuel purchases at the end of each month
Your employees don’t have to carry large amounts of cash
You can set limits and permissions for fuel card usage
You can easily monitor who’s buying fuel; where, when and how often
Reduced administration time as all your purchases will be on one statement not a pile of scruffy receipts

There are numerous fuel card companies so take time to consider which one is right for your business.  You should think about your fleet; how it operates and what you need from a fuel card company before you are in a position to look for your ideal fuel card solution.

What you pay for the fuel is important but it won’t be the only consideration in making your decision.  The fuel card you decide on should be easy to use, provide a convenient way of controlling and monitoring all your company fuel costs as well as giving your drivers the most suitable way of getting the fuel they need.

For more information on business fuel cards see our buyers guide – Click here.

Or get quotes from business fuel card suppliers – Click here.

Business Fuel Cards ?the features and benefits for your business

Let’s look at the advantages of using business fuel cards in more detail.

The crucial thing to remember for any business owner or fleet manager considering business fuel cards is that, essentially without them, there’s no real way to manage fuel costs. This can mean hundreds or thousands of pounds spent on fuel each year with nothing in place to monitor and control it.

Consequently one of the first noticeable benefits from using business fuel cards is the invoicing.  Business owners and fleet managers no longer have to sort through piles of receipts, expense claims to work out an appropriate level for the reimbursement of mileage.  Fuel costs are immediately apparent on the invoices. The European Sixth VAT Directive states that VAT can only be reclaimed if the transaction takes place between two organisations that are registered for VAT.  This could only be achieved via a purchasing mechanism, such as a fuel card, that allows for billing to be made in the name of the company.  It cannot be done using receipts for fuel from your staff.

At the end of each month a fleet manager will receive a full management report, that can be used can to monitor and track which driver is buying the most fuel and at what price as well as which service stations they’re filling up at and how often.   These reports should be available electronically so that they can feed straight into the fleet management computer systems.  They’ll show details of each and every transaction – which card was used; the date, the time and location of the transaction; the vehicle registration, the quantity and type of fuel purchased plus the vehicle mileage.  The miles per gallon information collected by most fuel card companies allows a fleet manager to monitor the consumption all the vehicles in the fleet.  They can then work to ensure that vehicles are not using excessive amounts of fuel, which could indicate that a particular vehicle needs maintenance or that the driver using excessive speed or even stealing fuel.
Through the management information trends are immediately visible.  The information will show which makes and models of vehicle are the most fuel-efficient; the driver who always fills up at motorway service stations rather than cheaper local sites etc.  Additionally where a fleet uses alternative fuels the reports will show how much is being consumed and how those vehicles compare against the petrol and diesel vehicles in the fleet.
Working with the fuel card provider this comprehensive management information can be used to create an integrated fuel policy.   With fuel cards a fleet manager can not only manage what vehicles employees drive and how they can also control where they buy fuel and how much they use.

The classic benefit given for fuel cards is that they remove the need for drivers to carry cash to buy fuel.  While this is arguably a health and safety benefit it also reduces company administration costs as expenses claims are more easily calculated.
Fuel can be bought through a specific network of service stations.  You’ll need to ensure that these are convenient for your drivers.   Many forecourts on the networks will operate 24 hours a day and the card can be used even in unmanned stations which adds further flexibility for you and your drivers.
With a fuel card you are likely to have pricing that is often consistent across the UK, which again reduces administration.  Many fuel cards offer discounted prices off the national average forecourt pump price which can mean significant financial savings.
Most networks will issue useful national site guides for you and your drivers
Finally all of the above points; the greater control, the convenience for all drivers and administrators, the cost savings on administration, mean that business owners and fleet managers can massively reduce fuel fraud, which can cause a major drain on company finances