Thu, 26 September 2019
Keeping tight control of costs is a must for every small business. Any unnecessary spending could make a dent in your profits and threaten the future of your company. Fuel is one of the costs you can control and fuel cards for small businesses can help you do this.
In this article, you’ll discover how fuel cards benefit your company and find a list of the best options for small businesses.
Fuel cards are a great way for small businesses to manage their costs and ensure they receive the fuel VAT refunds they’re entitled to from HMRC with minimal paperwork.
One small business in three goes into liquidation in its first year because of mistakes in cash flow management and a lack of ready funds to meet immediate debts.
Fuel cards can help you avoid this. They allow your small business employees to purchase the fuel they need. However, unlike paying with cash, they can buy now and pay later if you provide them with fuel cards.
This is because your company is sent a single invoice (weekly, bi-weekly or monthly) for the fuel your drivers have bought. You can then settle the bill by direct debit.
This gives you a crystal clear picture of your weekly or monthly fuel spending levels, and immediately shows you any spending that’s going over your limits and could threaten your cash liquidity. It also gives you a short-term line of credit and automates your invoice payment process.
Do you have a pile of receipts and bills that you are going to enter into your bookkeeping system just as soon as you get a free day? This situation may seem relatively harmless, but it lies behind the failure of numerous small businesses.
Getting behind on bookkeeping means being completely out of touch with your current financial situation. Those piles of receipts could tell a story about a problem building up, that you could resolve in time if only you knew about it. What’s just as risky is losing scraps of paper and making mistakes in your tax returns: in the very worst case scenario, there’s a prison sentence for tax fraud.
Fuel cards do one aspect of your bookkeeping for you automatically. Every fuel card purchase your drivers make to stay on the road is recorded electronically and appears in your account management software within minutes. This allows you to review your expenses in real-time, giving the data you need to establish if you’re spending more than you should be on fuel. iCompario can help you find a card that also lets you download the expenses as a .csv file or other format which you can upload to your own accounting software in seconds.
Thousands of small businesses in the UK pay VAT on their business fuel that they don’t owe. This is because the process of reclaiming it seems complicated when you haven’t been through it before.
To get your VAT refund, you need to submit to HMRC the business fuel purchases your business has made, and also keep the receipts for inspection if HMRC wants to check – which it can do any time up to 4 years later.
Fuel card management systems create an electronic record that pulls together all of the data you need to send to HMRC. This saves time for your admin time and means your business gets the VAT refunds it’s entitled to.
The best fuel cards for businesses save your company time and money. They do so by providing you with reporting software to monitor your fuel spending. And they do this by saving time.
We’ve listed five cards that do all this and highlighted the top way each one could benefit your business. Click the link below for the card that has the benefit you’re looking for.
|Fuel Card Name||Key Benefit||iCompario Star Rating|
|fuelGenie Fuel Card||Businesses who want excellent motorway coverage||⭐⭐⭐⭐⭐|
|Allstar One Fuel Card||Businesses who want supermarket cost fuel||⭐⭐⭐⭐⭐|
|BP Plus Fuel Card||Businesses who want access to a large premium network||⭐⭐⭐⭐|
|Texaco Fastfuel Fuel Card||Businesses who use both petrol and diesel||⭐⭐⭐⭐|
|Shell Multi-Network Fuel Card||Set card limits to stop misuse||⭐⭐⭐⭐|
Having fuel cards can save your business money, do your driver fuel expenses claims automatically and make it a 30-second job to reclaim your fuel VAT. As a free comparison site, iCompario can find you offers on cards from all the big oil companies or multi-brand cards, and deals with no minimum purchase or tie-in contracts.