Travel expenses can be an unknown entity for businesses, especially community service-based businesses, where lots of travel is required to deliver services to clients. For owners, estimating your business’ travel expenses can be a tricky task, and if underestimated, can have significant impacts on cash flow and profitability.
The best way to reduce travel expenses is to install technology that can help automate your manual recording with accuracy and efficiency.
Installing GPS Technology in your company cars helps take the guesswork out of your mileage claims, while also reducing the administration errors that come with relying on your field staff to remember to manually enter their log books.
At CARETAG, we analysed the administration processes of a medium sized DSP and found that they had a 20% overpayment of mileage claims, resulting in excess of $32,000 in overpayments to staff, per year! And the most shocking part was, the company knew about this overpayment, but didn’t know how they could reduce it! That’s a lot of money to be losing each year, due simply to manual administration errors.
By installing GPS technology in your company vehicles, you can automatically record mileage, times and routes travelled, every time the vehicle is used. Combining this with management software applications such as CARETAG, you can automatically download the information to your accounts systems, ready for you to reconcile daily, weekly, monthly, or whenever your schedule dictates. Because it’s all tracked and automated in real-time, it is completely accurate, resulting in accurate payments made, and no profit leakage through overpayments.