What Are Fuel Cards & How Can They Help?

Posted on |Business and Finance, Energy|, | 0

What-Are-Fuel-CardsA fuel card is simple and therein lies the charm. Fuel cards are essentially a credit card restricted to fuel payments. And they are useful for all manner of automotive tasks, from fleet management to company travel.

Versatility is credited for the payment scheme’s broad use in recent years, with benefits often extending to any vehicle-related purchase. Putting to bed common misconceptions that fuel cards only operate in the interest of large companies – whether a company is big or small, fuel cards will give you a helping hand.

The nuts and bolts of fuel cards are discussed further down the page. For now, here is my elevator pitch: Assuming you own a vehicle, purchasing a fuel card makes good business sense; saving you time and money. They protect you from volatile fuel prices and serve as general ease of life tools for employers and employees.

Read on to learn even more about fuel cards and how they will help you.

Saving money with fuel cards

Over the past few years, we have experienced a great deal of economic uncertainty. Fuel prices are a measure of such wild unpredictability, with prices dipping and diving in tandem with the world economy.

Times are tough, without having to worry about paying through the nose for fuel. And yes, fuel prices are great when demand is low. But the savings made at the moment will be eclipsed further down the road when prices inevitably rise again. Refusing to consider long term implications can cost your business dearly.

Using a fuel card allows businesses to stabilize outgoings over the long term. Take a fuel card like Allstar for example, which provides a discounted weekly fixed rate. By pre-arranging fees with options like the Allstar fuel card, you ensure there are no nasty surprises.

Leveling out travel expenses with a slight discount saves more money on average than relying on low demand. It’s also a relief to have stability amongst all the world’s variables.

There are many alternate fuel cards around, so get comparing to find the best deal. Most tend to charge an annual card fee, but any costs here will be offset by future savings.

Improving efficiency with fuel cards

Admin is an unfortunate reality of life. And vehicle management is no exception to the rule; in fact, it is completely laden with paperwork. Businesses can spend hours on end trawling through forms and fuel receipts just to claim back expenses. Many of us can take inspiration from fleet companies, which look to streamline operations and bypass such time-consuming tasks.

Implementing fuel cards into daily operations is one of the most effective ways to improve efficiency, and simplify pesky admin tasks. For one, using fuel cards allows a business to go cashless. Simply use the card to pay for transport-related expenses and there is no need for drivers to save receipts or keep track of what they spend. Any critical information regarding the transaction is recorded by the card, making it easily retrievable at a later date.

Most fuel cards are HMRC approved and promote good accountancy practice. All bills will be automatically made out to your business, producing an HMRC compliant invoice for tax submission.

Take control with fuel cards

Transparency is key to the success of any business. As a business owner, day-to-day operations can be hard to keep track of, and often become invisible to you. By not having a total understanding of the working practice, a business can be hemorrhaging cash through bad deals and poor habits.

Fuel cards are brilliant data storage tools and provide insight into otherwise invisible wings of your business. The card grants knowledge of fuel use and mileage and, in turn, allows for indirect saving opportunities to be made.

Take the Scania card, for example, which offers a comprehensive online account management tool. Such a feature allows you to observe how your drivers operate, or if there is an area of fuel management to improve upon.

Again, there are numerous fuel cards that offer similar features. Many are often noncontractual, giving you the freedom of knowing you can walk away at any time.

In the end,

Fuel cards are a simple and effective way to improve your business, no matter the size. But although they are all the same in purpose, each card you find will work in different ways. It is important to do your research and find one that fits your needs.

Lauren Author

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