Fuel cards are great tools that can help HVAC (heating, ventilation and air conditioning) companies be more efficient with their time and resources. These alternative payment methods to credit cards and cash are loaded with features that can streamline operations and enhance profitability. From automated expense management and greater security to streamlined operations, fleet cards can help HVAC companies optimize many aspects of running a business.
Managing expenses can be a headache, particularly if an HVAC business relies on manual data entry and expense reports. Fortunately, fuel cards can simplify the process with real-time data and automated fuel expense tracking.
Let’s explore the different advantages fleet cards offer HVAC contractors, beginning with direct financial savings.
Bigger Bottom Lines Through Direct Cost Savings
Financial growth can occur in several ways. For example, more business tends to lead to more income. However, margins also increase when a company can spend less money while continuing to do the same amount of work. This is one of several areas where fleet fuel cards excel. They can help an HVAC company function in a business-as-usual mode while reducing its spending through fuel rebates and special discounts.
Fuel Rebates
Most fuel card programs provide rebates on fuel purchases, leading to direct cost savings. However, the majority of these rebates are tied to specific fuel providers. The WEX Fleet Card offers rebates of up to 3¢ per gallon no matter where you fuel and can be used at 95% of U.S. gas stations. For companies that rely heavily on vehicles for operations, these savings can add up quickly.
Access to Discount Networks
Some fuel cards offer more than fuel savings. They also grant users access to discount networks for vehicle-related expenses. The WEX Fleet Card, for example, provides exclusive discounts on auto parts, maintenance services and even hotels.
Enhanced Expense Management
Managing expenses can be a headache, particularly if an HVAC business relies on manual data entry and expense reports. Fortunately, fuel cards can simplify the process with real-time data and automated fuel expense tracking.
Real-time Data
Fuel cards track purchases in real time. This feature makes fleet fuel cards far superior to credit cards. Rather than waiting for monthly statements, business owners and HVAC managers can access purchase data anytime through a fleet card dashboard. Whenever an employee makes a fuel purchase, every detail is recorded, including:
- Purchase date and time
- Purchase location
- Fuel type and grade
- Purchase volume
- Purchase amount
- Driver ID
- Vehicle ID
- Odometer readings
This immediate access to data allows HVAC companies to monitor expenses closely and make informed decisions.
Automated Fuel Expense Reporting
Real-time data collection also means fuel expense tracking is done automatically. Since all transaction details are recorded as they happen, drivers do not need to keep receipts or complete fuel expense reports. This saves drivers time and reduces the administrative burden on office staff. Eliminating the need for manual receipt collection and entry also removes the risk of human error.
Improved Oversight and Fraud Prevention
Beyond helping reduce costs and manage expenses, fuel cards are great for enforcing fuel spending policies and keeping fuel purchases secure.
Customizable Purchase Controls
Fuel cards offer customizable purchase controls allowing companies to set spending limits. These restrictions include time of day, day of the week, total number of transactions, purchase amount and more. When an HVAC company aligns purchase controls with its fuel spending policy, drivers and employees are always aware of expectations and are much less likely to violate the policy.
Enhanced Security Features
With features like driver-specific PINs and real-time transaction monitoring, fuel cards enhance security and reduce the risk of fraud. Managers can also set alerts for suspicious activities so they can address questionable transactions quickly.
Driver and Vehicle Tracking
Tracking drivers and vehicles can be tricky. However, fleet cards allow HVAC companies to access information that can help with both. A culture of accountability encourages responsible driving behaviors and efficient fuel use. Creating such an environment can be challenging, but fuel cards can help in several ways.
Individual Driver Tracking
A culture of accountability encourages responsible driving behaviors and efficient fuel use. But creating such an environment can be challenging. Fortunately, fuel cards can help in several ways.
Utilizing Driver IDs and fuel card data makes it possible to attribute purchases, mileage and routes to specific drivers. Simply knowing they are being monitored in real time increases driver accountability. Knowing each driver’s fuel consumption and driving patterns makes it possible to address concerns and retrain as necessary. With this information, managers can also acknowledge drivers contributing to a company’s bottom line through good driving and fueling practices.
When HVAC companies combine fuel cards with telematics, the driver-specific data becomes even more valuable. Managers can track speed, idle times, aggressive driving and harsh braking.
Vehicle Performance
The fleet card and telematics combo is also great for vehicle monitoring. Telematics, which uses onboard diagnostics and GPS tracking, gives HVAC owners insights into vehicle performance. By pairing this information with fleet card data, a manager has a holistic view of how each vehicle is functioning.
When used appropriately, fleet fuel cards can help with cash flow management in two ways: They are equipped with powerful reporting features and can streamline accounting.
Better Cash Flow Management
When used appropriately, fleet fuel cards can help with cash flow management in two ways: They are equipped with powerful reporting features and can streamline accounting.
Robust Reporting
With all fleet card data housed in a central location (a fleet card dashboard), it would make sense to be able to view the data in informative ways. Fortunately, you can do just that. The reporting features of fleet cards allow managers to run reports that help analyze fueling trends, spending patterns, fuel consumption and more. These insights are helpful in identifying trends that impact operations and cash flow.
Should there be a need to view specific metrics over a certain timeframe, the custom reporting feature allows managers to create the reports they need.
Streamlined Accounting
Accounting can be a time-consuming part of running any business. While automated fuel expense tracking eases this burden, fleet cards have another game-changing feature every HVAC business owner should use: data integration with accounting software.
Fuel cards, like those offered by WEX, don’t just house data in a dashboard. That information can be seamlessly integrated into most accounting and bookkeeping software. This means accounting departments have immediate access to valuable fuel purchase data, all recorded without the risk of human error.
Comprehensive Fuel Management for HVAC Companies
Fuel cards offer HVAC companies a comprehensive solution for managing fuel expenses, enhancing operational efficiency, and improving financial oversight. By leveraging fuel card advantages, HVAC businesses can achieve significant cost savings and maintain a competitive edge in the industry.