In the logistics sector, the fleet operations plays a big part. Vehicles used by companies in this sector can reach hundreds or even more. So, the management in the use of funds in this department can be challenging. Large funds are used for petrol. Imagine yourself as a manager in this department. With the huge number of vehicles and drivers, it is not surprising if you get confused about monitoring whether the petrol allowance you gave to your drivers was used for petrol or not.
Thus, there’s a need for a system to improve the accounting for the fund for petrol. One of the systems is the fuel card. I used to work in the fuel card department. I learned a lot about the benefits of using it. Using fuel card, companies can request for monthly statements showing the date of transaction, amount of fuel purchases (and other services available at the fuel station) and balance of the card. The fuel card has many features such as monthly consumption limits. And also, it can be assigned for a particular vehicle or general use (several vehicles).
Despite the systemized use of the fuel card, the fleet operation manager may need to assign a staff member to monitor the cards because it can be used incorrectly. For example, the driver can negotiate with the petrol filler. The filler will swipe the card for 100 euros but pump for 50 euros worth of petrol and the remaining amount can be negotiated between the driver and the filler. This is just one of the irregularities I discovered in my work experience in the fuel card department.
Proper use of petrol cards are very important not only to help with accounting and reporting but also because in some governments like the UK which offer VAT refunds for fuel purchases used for business purposes also have a stake in fuel card fraud detection and prevention. So, if the use of the card is wrong, the bottom line is that the government is defrauded out of the tax that should have been paid for the fuel.