Fleet cards: A guide to an essential fleet management tool

When you’re building your fleet management toolkit your first job will be finding the best fleet card provider for your business. This is because fleet cards:

• Provide robust fraud protection
• Allow you to track expenses
• Track routes
• Improve driver safety
• and take advantage of savings that go beyond fuel

“Beyond fuel” advantages include:

• Vehicle maintenance
• Tire purchases
• Travel expenses
• and sometimes even driver wireless expenses.

Before introducing your new fuel card to your drivers, you should develop and share a strong fueling policy. In this article, we’ll talk through how to do that. We’ll also explain the “beyond fuel” perks listed above.

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How to develop a fleet fueling policy and enforce it

Whether you oversee a few commercial vehicles or manage a larger fleet, maintaining efficient fuel spend is an important part of your job. Launching a fueling policy will help you keep on top of spend. Your policy should clearly define the proper use of fleet cards, specify authorized purchases, emphasize driver safety rules and regulations, and detail how to optimize the benefits of your fuel card program. Your policy will deliver:

• Optimized operational costs
• Enhanced efficiency
• Reduced environmental impact
• Responsible fuel consumption practices among drivers

How smart fueling policies help keep costs down

One immediate benefits of a strong fleet fueling policy is the potential for cost savings. Fuel is one of the largest variable expenses in fleet operations. Global events have a tremendous effect on fuel availability, and on fuel costs. Fleet managers must adapt their fuel budgets to react to changing global circumstances on a dime. When you set clear guidelines on fuel purchases such as designated fueling stations, preferred fuel types, and fuel card usage you’ll benefit. Benefits include the possibility of obtaining more favorable rates from suppliers, discounts you get automatically when you use a fuel card, and gain best-in-class fraud protection.

When you introduce a new fueling policy you gain an opportunity to get in front of your drivers and re-educate them on fueling best practices. Drivers may not realize how their decision-making impacts your business, and fueling policies clearly describe what they need to do to ensure efficient fuel usage. Putting fueling policies in place also simplifies budgeting and forecasting. Fuel consumption can be more accurately predicted and monitored when your team is using fuel cards while out on the road.

More efficiency and greater productivity when you have a fueling policy

A strong fueling policy can increase efficiencies across your fleet. By analyzing fuel consumption patterns, you’ll identify inefficiencies in both routes and vehicle usage. This is especially true when paired with a strong telematics program. A data-driven approach to fleet management enables route optimization. Route optimization leads to a reduction in both mileage and fuel consumption.

Additionally, by standardizing refueling procedures, businesses can minimize vehicle downtime. Pair that with the WEX Connect app, and your drivers will find the closest fueling stations on their route, and easily select the station offering the best price per gallon.

Environmental responsibility in fleet management

Enforcing a fleet fueling policy can also lend itself to a company’s environmental stewardship. By encouraging eco-friendly driving habits, reducing idling time, and the use of cleaner fuels, businesses can reduce their carbon footprint. This not only benefits the environment but also enhances your company’s reputation as a socially responsible business.

Compliance and safety when managing your fleet

A comprehensive fueling policy ensures compliance with federal and state regulations. You’ll be on top of fuel handling and storage, emissions requirements, and transportation safety. By adhering to fleet regulations, you’ll avoid potential fines and legal issues while also ensuring driver safety. With a well-designed fueling policy you might gain some insurance benefits too. Companies taking proactive steps to mitigate risk often qualify for lower premiums.

Fleet data analytics and insights gained

Once you have a fueling policy in place, take advantage of the detailed data you get from your fuel card. Gain insights into fuel usage and use that data to inform your operations. With advanced analytics, businesses can track and analyze trends, forecast future needs, and make informed decisions. These decisions will involve fleet management, vehicle maintenance, and even future vehicle purchases.

Fraud protection that can’t be beat

Fuel fraud is a significant issue for today’s commercial vehicle fleets. A strict fueling policy coupled with fuel card programs incorporating two-factor authentication help mitigate fraud. Setting transaction limits, requiring driver identification, and monitoring for unusual activity are all part of the plan. Protect against losses due to fraud and deter theft and misuse of resources by setting clear, well-communicated policies for your drivers.

Driver accountability and training

A clear fueling policy sets expectations for drivers and holds them accountable for their fuel usage. This accountability can be reinforced through training programs that educate drivers on fuel-efficient driving techniques and proper fueling procedures. Driver training not only promotes compliance but also fosters a professional and responsible driver culture.

A fleet fueling policy is not just a set of rules; it’s a strategic tool with substantial benefits. It helps businesses:

• Manage costs
• Increase efficiencies
• Uphold environmental values
• Ensure safety
• Fain insights
• Protect against fraud
• Establish a culture of accountability

For businesses optimizing their fleet operations, investing in a robust fueling policy is a smart first step.

Business reporting & tax prep – tips and tricks for year-end

The period of year-end reporting can be a busy time for small businesses. It involves wrapping up the year’s financial activities and preparing reports for tax and business analytics purposes. Here’s a to-do list for your business:

• Organize financial documents: Ensure all invoices, receipts, bank statements, and relevant financial documents are organized and accessible.
• Reconcile bank statements: Compare your internal records with bank statements to ensure they match.
• Review profit and loss statement: Summarize your income and expenses to see your net profit or loss for the year.
• Prepare balance sheet: Report on the company’s assets, liabilities, and equity to understand the financial position at year-end.
• Complete and send W-2 and 1099 forms: If you have employees or have used the services of independent contractors, you’ll need to send out these tax forms by January 31.
• Close your books: Finalize your accounts for the year, often by entering year-end adjusting entries to account for accruals, depreciation, and other items.
• Inventory management: If applicable, perform a year-end inventory count to determine the value of goods on hand.
• Collect outstanding receivables: Attempt to collect outstanding invoices to clean up your books.
• Pay outstanding payables: Make sure all your bills are paid, or properly accounted for in your books.
• Review and update payroll records: Ensure all payroll records are accurate and up-to-date, including benefits and deductions.
• Tax preparation: Compile all necessary information for tax filing, which may include:
  • Income statements
  • Balance sheets
  • Payroll documents
  • Inventory totals
  • Expense reports
  • Previous year’s tax return for reference
• Meet with your accountant or tax preparer: Discuss tax strategies, any changes in tax laws, and finalize your tax return.
• Assess your financial health: Analyze financial statements to evaluate the business’s performance and make decisions for the upcoming year.
• Review your business plan: Update your business plan with the information from the year’s performance to guide your strategy moving forward.
• Prepare a budget for the new year: Use the insights from the year-end analysis to create a budget for the new fiscal year.
• File year-end reports: Depending on your location and business structure, file any required reports with local, state, or federal agencies.
• Regulatory compliance: Ensure that your business is in compliance with other regulatory requirements which may include industry-specific reports, environmental regulations, etc.
• Distribute shareholder/partner information: If your business is a corporation or partnership, you may need to provide financial information to shareholders or partners for their own tax filings.
• Backup records: Ensure all of this year’s records are backed up securely.
• Review and update policies: If necessary, update any company policies, including your accounting policies, based on the year-end review.

Requirements can vary based on the country, state, and local jurisdictions, as well as the type of business entity (LLC, corporation, partnership, sole proprietorship, etc.). A professional accountant or financial advisor can help to ensure all legal and financial obligations are met.

Fleet management reporting for your business

For a business that operates a commercial fleet of vehicles, there are several specific year-end considerations to keep in mind. One helpful tool for generating all the data you need for these year-end tasks is a transaction detail file which you can get from your fleet card provider. The exact requirements for this paperwork can vary depending on your jurisdiction, but here are some reports and tasks that commonly need to be completed:

• Vehicle expense report: Detail the expenses associated with each vehicle, including fuel, maintenance, repairs, insurance, and lease or loan payments.
• Mileage logs: Summarize the total miles each vehicle has driven, distinguishing between business and personal use if applicable.
• Depreciation schedules: Update the depreciation expense for each vehicle, if the business uses depreciation for tax deductions.
• Fuel tax credits or rebates: If the jurisdiction offers tax credits for fuel purchases, prepare the necessary documentation to claim these credits.
• Fleet inventory: Provide a year-end inventory of all fleet vehicles, including make, model, year, VIN, and current value.
• Vehicle registration and taxes: Ensure vehicles are up-to-date on registration and any required taxes are filed, such as Heavy Highway Vehicle Use Tax (HVUT) in the United States for trucks over a certain weight.
• DOT compliance: If the vehicles are subject to Department of Transportation (DOT) regulations, ensure that all compliance reports are up-to-date, including hours of service logs, inspection reports, and maintenance records.
• Insurance policies: Review and update insurance policies, making sure that coverage is adequate and all vehicles are listed.
• Lease agreements: If any vehicles are leased, review the agreements to check for renewal dates or reporting requirements.
• Accident reports: Summarize any accidents that have occurred, including the status of insurance claims and any associated costs.
• Emissions testing and environmental compliance: Depending on the jurisdiction, there may be requirements for emissions testing and environmental compliance reports.
• Capital expenditures: If there were any purchases or sales of fleet vehicles, document these transactions in detail.
• Driver records and compliance: Maintain up-to-date records on all drivers, including licenses, training, and any compliance issues.
• Fleet utilization review: Assess how effectively your fleet is used, identifying any underutilized vehicles. Identify vehicles that could be sold or gaps where additional vehicles are needed.
• Cost-per-mile analysis: Calculate the cost per mile for each vehicle to identify areas for efficiency improvements.
• Fleet maintenance review: Compile a maintenance history report including upcoming service needs for each vehicle.

When overseeing commercial fleets, compliance with local, state, and federal regulations is important. This can include adhering to transportation laws, environmental standards, and tax regulations specific to the operation of commercial vehicles. To avoid a serious headache at the end of the year, use fleet management software to track these elements throughout the year. This will simplify your year-end reporting.

Fleet card transaction detail files save you money and increase driver safety and accountability

The data you pull from your fleet card account will make adherence to your fueling policy easier to justify and maintain. The numbers will reflect how policy adherence impacts your business, giving you fodder for compliance.

Because of this, the true potential of your fuel card program lies in its ability to provide detailed transaction data. With a comprehensive data set you can show how proper fleet card use significantly impacts a business’s financial health, environmental footprint, and driver safety. Let’s explore four ways a fleet card transaction detail file can save you money and keep your drivers safet and accountable.

1. Cost savings through detailed expense tracking

Fleet card transaction files give you an itemized record of every expense incurred by each driver. This level of detail allows you to:

• Monitor fuel spending: By tracking fuel purchases, companies can identify and address instances of excessive fuel consumption or unauthorized spending.
• Reduce fraud: Detailed transaction records make it easier to spot irregularities, such as duplicate charges or purchases made outside business hours. You can also build exception reporting around your controls as another layer of protection. Exception reporting allows transactions to go through even when they exceed the controls you put in place. With exception reporting, you are notified of any aberrations to routine fleet card usage and can address those exceptions with your drivers. This gives your drivers more flexibility while keeping you in control and aware of spending that falls outside normal operating procedures.
• Optimize vehicle usage: Analyzing data on fuel consumption versus distance traveled can help businesses make informed decisions about vehicle allocation and routing, leading to more efficient use of resources.

3. Encouraging fleet driver safety and accountability

Fleet card transaction files also play a role in improving driver safety and accountability because they allow you to:

• Monitor driver behavior: Detailed records of where and when purchases are made can help businesses track driver routes and ensure safety regulations compliance.
• Incentivize safe driving: Businesses use transaction data to reward drivers who consistently demonstrate safe and efficient driving habits.
• Quickly respond to emergencies: In case of an emergency, the transaction data helps pinpoint a vehicle’s last known location, allowing for quicker response times.

4. Streamlining fleet management administrative processes

The automation and organization of expense tracking through fleet cards reduces administrative burdens by allowing you to:

• Simplify expense reporting: With digital and detailed records, the need for manual receipt collection and expense reporting is significantly reduced.
• Manage your budget with greater ease: Real-time data allows for more accurate budget forecasting and financial planning. Look at your fuel spend for the year and predict what kind of budget you’ll need for the coming year. The data will also help you calculate your business’s price per gallon.
• Improved compliance: Detailed transaction records help you adhere to tax and regulatory requirements.

The detailed transaction data provided by fleet cards is a goldmine of information that can drive significant improvements in cost efficiency, environmental sustainability, and driver safety. This reporting is right at your fingertips whenever you need it on WEX Online.

By strategically analyzing and acting upon the information you get from a fuel card program, you can save money while contributing to a safer, more responsible, and sustainable world. The integration of fleet card transaction details into a company’s operational strategy is an investment that yields many returns, enhancing overall business performance and contributing to long-term success.

WEX is a leading, global fintech solutions provider, simplifying payments and back-end business processes in the fleet management, benefits management, and corporate payments areas. To learn more, please visit the company’s About WEX page.

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