Fuel cards offer numerous benefits for small businesses, including consistent savings beyond what can be saved at the pump, greater control over employee spending, detailed expense reports, and exclusive discounts through savings networks. Additionally, with premium GPS tracking and fleet management analytics, businesses can achieve even greater efficiency and cost savings. WEX offers a range of fuel card options designed specifically for small businesses, making it easy to find a solution that meets your unique needs.
Small Business Fuel Cards and Savings
Fuel expenses are one of the largest costs incurred by businesses that have vehicles on the road. Besides the unpredictable fluctuations in fuel prices, it can be challenging to budget for fuel costs effectively. However, with small business fuel cards, companies can save money on fuel costs and gain a competitive advantage.
The benefits of using small business fuel cards are numerous. In general, fuel cards provide savings beyond what can be saved at the pump, giving businesses a chance to spend strategically. Beyond helping businesses save on expenses, small business fuel cards help control employee spending, track purchases online, and identify fraud or misuse. They also supply detailed reports that enable more informed decision-making.
For instance, WEX fuel cards offer many advantages that support small businesses’ growth and success. These cards help companies control their expenditures and reduce operational expenses while providing detailed reports to evaluate their performance metrics accurately. They’re excellent for companies looking to reduce their fueling costs regardless of equipment size.
Moreover, automatic expense reporting with fuel cards saves time for businesses by eliminating manual data entry into accounting systems or the need for receipts. Plus, premium GPS vehicle tracking and fleet management data analytics can facilitate even greater savings and efficiency by enhancing routing optimization and decreasing idling times.
Compared to traditional credit cards or cash payments at the pumps, small business owners may benefit from lower transaction fees offered by fleet card providers like WEX Fleet. This feature allows companies to receive discounts when refueling their vehicles or paying for repairs/maintenance services.
Overall, small business fuel cards provide many benefits that support growth and profitability for companies that rely on vehicles as part of their daily operations.
According to a recent study conducted by Certify, fleet-related business expenses average $444 per employee per month. At this rate, managing these costs efficiently could make a significant difference in overall profitability.
A company with only ten employees spending an average of $400 per month on fuel costs could potentially save up to $4,800 a year by using small business fuel cards. That’s enough to purchase new tires, cover oil changes, or general maintenance costs for several vehicles.
Adopting WEX fleet cards can provide companies with significant savings, as businesses may receive rebates on every gallon of gasoline purchased at over 95% of gas stations across the country. This feature helps companies optimize their fueling decisions and prioritize those times when prices are more favorable.
Fuel cards work like credit cards in that companies can use them to make fuel purchases that on-demand without requiring cash handovers. In a sense, they act as a safeguard for businesses against rising fuel prices or price volatility in the market.
You wouldn’t go out shopping for groceries without bringing your credit card along. The same applies to driving your vehicle – it’s critical to ensure you have access to readily available funds for fuel expenses. Ultimately, small business fuel cards offer many advantages that traditional payment methods lack.
Maximizing Fuel Savings
Small business owners need to understand the various ways they can leverage their fuel card accounts to maximize cost savings fully. Here are some strategies that can help companies achieve maximum value:
1. Consider using local gas providers: If you’re only using brand-name gas stations, it can be challenging to cut back in terms of pricing. Switching to less expensive providers may help increase discounts significantly. Some examples include Costco or local grocery chains whose loyalty programs allow for further discount accumulation.
2. Utilize Savings offerings: Different fleet cards offer special deals or savings codes exclusively available through specific retailers or online merchant platforms. Utilizing these services will earn discounts up front directly from merchants during the purchase checkout process which could add additional benefits beyond any savings collected on fuel purchases.
3. Reduce Over-Spending: Establishing spending rules for your employees that are designed to restrict fuel expenditures is a recommended best practice. Implement these guidelines to ensure every dollar goes towards essential expenses and prevents wasteful spending.
For example, one business owner may establish a dedicated payment card solely for fuel purposes; this card would be programmed only for specific location recognition elements necessary to process fuel purchase transactions, which limits the potential for using the card elsewhere.
4. Careful Monitoring: Like any other company expense, it’s critical to monitor how you’re spending your money. Ensure your team understands how to use fuel cards correctly and review monthly reports that can help determine areas where your company can improve in terms of reducing expenses or maximizing captured discounts.
5. Adopt Fuel-Efficient Solutions: Using modern vehicle technologies helps pave the way toward increasing fuel efficiency significantly. Investing in hybrid cars, electric vehicles that run on electricity, or stretching operational intervals between refueling stops positively impacts overall gas use reduction initiatives.
6. Minimizing idle time: Eliminating unnecessary idling reduces fuel costs automatically. Constant vehicle usage causes engines to overheat and waste energy if left idle not just during traffic but also while on-site work stalls as well.
All in all, understanding how best to utilize small business fuel cards such as the WEX Fleet card allows businesses to enjoy greater savings benefits and maximize profitability effectively.
Now that we’ve covered strategies to maximize your cost savings let’s move on and look at how you can exercise more control over employee spending behavior.
Controlling Employee Spending
One of the biggest benefits of fuel cards for small businesses is that they provide a way to control employee spending. Fuel expenses can add up quickly, and without proper monitoring, employees may be overspending or using the company’s resources for personal use.
Fuel cards add an additional layer of security by requiring drivers to enter a unique PIN code at the pump before fueling up. This ensures that only authorized drivers are using the card for business purposes.
Moreover, fuel cards allow business owners to monitor transactions in real-time through an online portal or mobile application. This allows them to see when and where fuel was purchased, how much was spent, and which driver made the purchase. In case of any discrepancy or misuse, they can immediately take action.
Beyond that, many fuel card providers also offer customizable spending limits for each employee’s card. By setting a limit on each card based on the employee’s role and responsibilities, unnecessary spending can be prevented.
For example, if you have an employee who is only responsible for local deliveries within a specific region or city, their spending limit can be capped within those limits. Similarly, if you have an employee who needs to travel frequently for sales meetings or client visits, their spending limit can be increased accordingly.
By controlling employee spending with fuel cards, small business owners can ensure that they are getting the most out of their fuel budget while still empowering their team members to carry out their duties effectively.
Features and Benefits
Fuel cards offer numerous features and benefits that can help small businesses save time and money. To begin with, fuel cards come with various discounts and rewards programs that are designed to give businesses a break on their fuel expenses. This help managers budget for fuel costs better as they know how much they can save from the discounts and rewards.
Additionally, most fuel card vendors allow business owners to set limits on employee spending. This feature enables managers to control how much employees can spend on gas, who can purchase gas using the company’s fuel card, and when transactions can be made. With this level of control, businesses can reduce the chances of unauthorized purchases or misuse of the fuel card.
Furthermore, many fuel card companies offer online account management tools that allow businesses to track purchases, analyze spending behavior patterns, and monitor transaction history in real-time. The data derived from these tools can assist managers with decision-making processes by ensuring accurate expense tracking and monitoring while increasing overall accountability.
Finally, one more feature of the fuel card is that it helps simplify bookkeeping tasks when used for the purchase of other items besides gas at delivery stores or service locations. A single payment would cover all expenses instead of making separate payments for every transaction with different modes of payment.
For example, Joe owns a small landscaping company that operates five trucks daily during the summer months. He has provided each truck with a WEX fleet card to streamline his accounting process, collect data about how much is being spent on fuel, prevent fraud, reduce costs through savings at participating merchants using WEX EDGE program offers sent out regularly via email notifications even without visiting any physical location personally or digitally accessing its website.
Another essential benefit of fuel cards is that they offer reliable customer support services accessible within regular office hours – on-demand assistance whenever needed. Given the unpredictable nature of unforeseen events that may occur while driving (such as accidents), having access to immediate support helps drivers feel safe and prepared, supporting their company’s growth.
As a business owner, one may argue that the process of implementing fuel cards can be complex or tedious. However, the benefits of a fuel card program far outweigh the disadvantages associated with each decision-making level. Fuel cards are easy to use and implement, requiring minimal training for employees and drivers. Online account management of transactions is simple, intuitive, and transparent. Moreover, fuel cards offer centralized control over purchases facilitating spending decisions immediately in case of emergency situations such as vehicle maintenance plans or other unforeseen expenses.
Some business owners may argue that they won’t benefit from a fuel card program unless they operate large truck fleets regularly traveling vast distances cross-country. However, any size business with at least one driver can benefit from a fuel card. Even sole proprietors will have opportunities to save money on fuel during each transaction. Similar to Joe’s small landscaping company earlier cited as an example.