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The A-Z business fleet guide – X is for Xpenses

As part of our Fleet For Growing Businesses hub a A-Z of key business fleet terms has been produced, with an xpenses (sorry) strategy plays a key role.
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The variability of a company fleet creates a need for accurate and real-time monitoring of the expenses generated by running one.

From topping up vehicles with fuel to making sure a company car is looking good with a trip to the car wash, these are necessary expenses – but businesses would be wise to track them and drive down costs.

Weekly research can help determine which fuel forecourts are offering the best deal, meaning drivers can be directed towards these until further notice. Fuel cards are also another great way of both monitoring in real time what is spent on fuel and accessing bulk buying discounts.

Additionally, getting all vehicles cleaned at the same time will be far cheaper than ad-hoc trips to the car wash.

Another expense of note associated with business fleet is car running costs. Over the lifetime of a company car, costs such as new tyres and brake pads must be accounted for. These are the kind of considerations that go into calculating the whole life cost of a fleet vehicle.

Putting undue pressure on a company’s cash flow is something every business owner/manager wants to avoid. One proven way of staying on top of your business fleet expenses is an audit. Conducted on a quarterly or annual basis, it will provide great visibility on where company outgoings are increasing, where savings have been made and what new costs have arisen.

Using both fuel cards and tracking systems, that monitor the miles per gallon of a vehicle and the driver’s behaviour, will help produce accurate reports for fleet operators on a daily, weekly or monthly basis.

If you’ve found this article useful then make sure you visit our complete A-Z of business fleet terms, which provides a complete glossary so you can make an informed purchasing decision.

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About Author

Hunter Ruthven

Hunter Ruthven is the editor of Real Business. He is also the editor of Business Advice, a title focused solely on a section of the business community currently underserved – micro companies. Alongside this, he is part of the team that hosts the Growing Business Awards, First Women Awards and Future 50 initiative.

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