Controlling Your Largest Operating Expense

Controlling Your Largest Operating Expense

Accutrac Capital 20-Dec-2016 0 Comments

A dedicated freight factoring company will provide an array of services to help your trucking business grow. Beyond the principle service of providing fast access to cash, a reputable industry specific invoice factoring company will facilitate AR collection, include free unlimited credit searches to mitigate risk, and provide Fuel Discount Cards to control your largest operating expense.

Up to a third of all company working capital goes to fuel. Controlling your trucking companys largest operating expense is a very difficult task to manage. Fortunately, the cost saving benefits from a freight factoring Fuel Discount program provides huge savings to offset this ongoing cost.

Choose your fuel card provider carefully as not all programs offer the same features and benefits. A Fuel Discount card is a specific form of fuel card, featuring an effective means to save money on fleet operations while adding driver benefits. Fuel Discount Cards from an invoice factoring company such as Accutrac Capital provides cost control, additional security, ease of use and most importantly, cost savings.

Cost Savings

An increase in revenues doesn't always translate to an increase in profitability. However, a dollar saved from operating costs goes directly to the bottom line. It is money in the bank. The Accutrac Capital Fuel Discount Card is a fuel card program that provides significant discounts on the cost of diesel fuel at major truck stops across North America. This cost saving advantage levels the playing field, allowing any size fleet, from one truck companies to mid-size carriers to compete against the larger fleets. In addition to savings, the Fuel Discount card permits simple payment terms to alleviate the cash flow stress of payment on demand.  

Cost Control

Detailed monitoring of fuel purchases on a day to day basis is vitally important to your companys success. Without the adequate tools and resources to maintain tight controls, your business is at risk of inadequate fuel management, which could result in thousands of dollars in wasted expense.

What makes fuel expense so difficult to control is the simple fact that you are not there 24/7 watching over the operation of your trucks as they haul freight across the highways and byways of North America. A typical tractor trailer unit will consume up to $2,000.00 of diesel fuel per week. Over weeks and months of operation, even a slight variance in expenditures, either to the positive or negative, will have tremendous impact on your bottom line.

Fuel consumption can vary heavily due to road conditions and load weight. Driver habit and mechanical condition of the working equipment also plays a major role in consumption. These variables create an extremely difficult situation to assess conditions and implement control measures.

It is a proven fact that expenses are controlled better when they are tracked and analyzed. Fuel card programs are an extremely effective means of implementing control management systems such as detailed real time reporting and issuing alerts. If a driver makes a purchase outside of the parameters set by management, this information is recorded instantly along with the drivers name and vehicle number. By establishing fueling policies and limits, such as number of purchases per day, your company is protected against unauthorized expenses that threaten the profitability of your company. Hours can make all the difference. Instant reporting of spending activities and driver progress allows management to have control over fuel expenses as they occur and provide the means to cut overall operating costs. In addition, with the aid of concise reporting, fuel related tax preparation becomes a straightforward process.

Creating company fueling policies and utilizing a fuel card program to govern day to day governance is the first step in gaining real control over fuel management and cost saving measures. Once policies and systems are in place, communicate these work practices to your drivers and provide them with the cards for use. Let them know that all diesel fuel purchases are being monitored. Inform them of what fleet products and services are permitted and what are restricted with their diesel fuel cards. This will help to control costs, quality and consistency of the commodities and services that support your working fleet.

Extensive Security Controls

Ensure the program you choose includes extensive security controls. The Accutrac Capital Fuel Discount program includes the need to enter a unique password for each transaction. In the event a card becomes lost or stolen it is a simple matter of closing out the compromised card, thereby retaining full security of your account. Each card that is issued to your drivers can be individually activated or deactivated instantly by the authorized account manager.

Additional Benefits

Above and beyond cost control and security measures, the additional benefits are extensive. The Accutrac Capital Fuel Discount Card allows each driver the ability to access up to $100.00 per day in cash advance from conveniently located terminals. With this feature, your driver pool has the ability to safely manage cash while on the road as your companys accounting department tracks, monitors and controls each withdrawal. Most importantly, Accutrac Capital provides credit terms to qualified trucking companies allowing you the flexibility to easily schedule payments on your fuel account.

The spending habits of your drivers and your companys money management will largely determine the success of your trucking company. Discount Fuel Cards are amongst the most powerful financial tools available to trucking companies engaged in the pursuit of expense management and fuel cost reduction.

For more information on Discount Fuel Cards, please call 855-838-7575 or visit: www.accutraccapital.com


 

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