When it comes to businesses with a fleet of vehicles, it’s important to have a system in place that records vehicle mileage accurately. Why? Well, for starters, accurately recording vehicle mileage can help save time and money for both the business and the driver. And not only that, it can help reduce state mileage auditing for International Fuel Tax Agreement (IFTA) tax submissions.
Let’s examine 3 ways of capturing vehicle mileage:
How it works: Drivers keep the logbook inside their vehicle and write down their daily routes and mileage.
Pros: It is the most basic and least expensive method of recording mileage.
Cons: It has the potential to be inaccurate and can easily be misplaced or lost.
How it works: A spreadsheet allows drivers to log their mileage electronically, eliminating pen and paper logbooks.
Pros: It is inexpensive as most companies have Microsoft Office and it’s easier than handwritten logbooks.
Cons: Spreadsheets, like manual logbooks, have the possibility for inaccuracies or inflated mileage.
GPS Fleet Management Solution
How it works: A fleet management solution combines the web, wireless, GPS satellites and Google®Maps technology to provide real-time data about a vehicle or fleet of vehicles.
Pros: A fleet tracking solution has a very high accuracy rate. Because the solution is web-based, businesses can automate time-consuming manual processes, like logbooks, through reporting functionalities. This saves time and money. A fleet management solution, depending on the provider, also offers fuel card integration. Using a fuel card, drivers must provide the vehicle’s mileage and registration in order to purchase fuel, eliminating abusive purchases and inflated mileage.
Cons: Businesses and many employees think a fleet management solution is big brother, but, in actuality, fleet tracking can benefit both employees and businesses in more ways than one.