Managing fuel expenses is essential for any business that uses fleet vehicles — especially considering that fuel is usually the largest line item in the company budget. Implementing a fuel spending policy is one of the most effective ways to control fuel costs. A fuel spending policy sets guidelines for fuel purchases, establishes procedures for tracking and monitoring fuel expenses, and indirectly helps manage cash flow.
However, a fuel spending policy is only effective if enforced. Fortunately, there is an easy way to do this. Enter: fleet cards. Most fleet fuel cards include tools to help rein in your biggest expense. You can use these features to enforce your fuel spending policy, ensure compliance and reduce fuel expenses.
By choosing the right fleet card and putting its features to good use, businesses can stick to their fuel spending policy.
The Importance of a Fuel Spending Policy
A fuel spending policy sets guidelines for fuel purchases and establishes procedures for tracking and monitoring fuel expenses. Make sure your fuel spending policy includes the following elements:
- Fuel purchase guidelines: specify what fuel types are allowed, what stations drivers should use, and any other guidelines related to fuel purchases.
- Reporting procedures: establish procedures for tracking and reporting fuel expenses, including requirements for drivers to submit expenses and guidelines for how fuel expenses should be recorded and tracked.
- Enforcement procedures: outline procedures for enforcing the policy, including consequences for noncompliance.
Implementing a fuel spending policy is essential for controlling fuel expenses, but it is only effective if enforced. This is where fleet card features come into play.
Fleet Card Features that Help Enforce a Fuel Spending Policy
Fleet cards come with many features that can be used to help drivers and employees adhere to a fuel spending policy. Let’s take a look at a few of the more common ones.
Fuel Purchase Controls
Most fleet cards include purchase controls to restrict fuel transactions and authorize certain products and services. For example, a business can specify that only regular unleaded gasoline can be purchased using the fleet card and that premium gasoline or other services, such as car washes, are not allowed. This can help businesses ensure drivers purchase the correct fuel type while preventing unnecessary purchases.
You can limit purchases by time of day, day of week, brand type and more.
Spending Limits
Fleet cards can be programmed with spending limits. Fleet managers or company owners can set spending caps for drivers, window of time or company vehicles. Regardless of how you set purchase parameters, this specific control is a highly effective way to limit what can be spent on fuel.
Real-time Monitoring
Many fleet cards offer real-time monitoring of fuel purchases. Data capture as transactions occur allows businesses to track and monitor fuel expenses when they happen. This helps companies identify unauthorized purchases, potential fraud and card misuse as well as take immediate action to address the issue.
Detailed Reporting
When you use fleet cards, you have real-time access to the details of fuel purchases. Common data points include date and time of purchase, odometer reading, purchase amounts, fuel type and fuel price. This information helps businesses accurately track fuel expenses.
All details can be viewed in robust reports. Both standard and custom reporting options provide data analytics to help identify areas for cost savings. Ultimately, these insights create opportunities to improve fuel efficiency, optimize fleet management and save money.
Benefits of Using Fleet Cards to Enforce a Fuel Spending Policy
A fuel spending policy sets guidelines for fuel purchases, establishes procedures for tracking and monitoring fuel expenses, and indirectly helps manage cash flow.
Improve Compliance
Fleet cards can help ensure compliance with a fuel spending policy by providing real-time monitoring and reporting on fuel purchases. This can help businesses identify any non-compliant purchases and take immediate action to address the issue.
Increase Efficiency
With detailed reporting on fuel expenses, fleet cards help businesses identify areas for cost savings and opportunities for improving fuel efficiency. This can help companies optimize their fuel expenses, reduce waste and improve the overall efficiency of their fleet operations.
Streamline Record-keeping
Your fleet card should provide detailed reporting on fuel expenses, making record-keeping more streamlined and efficient. With automated fuel expense tracking, your drivers no longer need to submit expense reports. This will help your business save time while reducing the administrative burden of tracking and monitoring fuel expenses.
Enhance Security
Most fleet fuel cards offer enhanced security features, such as Personal Identification Numbers (PINs) and fraud monitoring, to protect against unauthorized purchases and fraud. This can help businesses reduce the risk of fraudulent activity and ensure the security of their fuel spending.
Additional Fleet Card Benefits
There are many benefits of fleet cards that won’t impact your fuel spending policy. But these features are things that can help your business. Be aware of any fuel discounts or rebates — these can help you save on gas and diesel, regardless of fuel prices.
In addition to savings, you may have access to special pricing on things like maintenance, service-related purchases or tires.
Choosing the Right Fleet Card
When considering a fleet card, it’s essential to choose one that fits your company’s needs. From small business to big business, here are a few factors to consider when selecting a fleet card:
- Fuel Purchase Controls: look for a fleet card that offers fuel purchase controls, allowing you to set spending limits and restrict fuel purchases to authorized products and services.
- Real-time Monitoring: choose a card that offers real-time data monitoring of fuel purchases.
- Detailed Reporting: select a fuel card that provides detailed reporting on fuel expenses and allows you to create custom reports.
- Enhanced Security: ensure your fleet card has enhanced security features, such as PINs, fraud monitoring or driver IDs, to protect against unauthorized purchases and fraud.
By choosing the right fleet card and putting its features to good use, businesses can stick to their fuel spending policy. This results in streamlined fuel expenses, reduced waste and improved overall efficiency of fleet operations.
To find the fuel card that’s best for you, visit Shell Business Fleet Solutions.