10 Items you Should Track in your Fleet Management Budget

Do you know where your fleet management budget goes?

Just like your own household budget, it’s important that you know where your fleet management budget dollars are being spent. Do you give your kids your checkbook to buy anything their hearts desire? Likely not! The same financial responsibilities apply to a fleet organization.

There are many items in the fleet management organization that should be tracked in the budget. Are you sure that you’re currently tracking everything necessary for accurate reporting?

Items you should track:

  • Internal repair- labor
    • Know how much you are spending on labor, including technicians and “overhead” staff so you can calculate your hourly labor rates.
  • Internal repair- parts
    • Understand what the organization is spending on parts to compare vendor pricing and to negotiate better pricing through your buying power.
  • Commercial/outside vendor charges
    • Are there opportunities to perform more outside work in-house or to send work out so the shop can focus on the tasks they perform best?
  • Fuel costs
    • Are some assets using more fuel than others?
  • Long-term fleet rentals
    • Charge your customers a monthly fee for the use of the equipment.
  • Motor pool rentals
    • Have you considered renting your own equipment, like the large fleet organizations do?
  • Special fees (car washes, tolls, etc.)
    • Don’t forget fees that aren’t necessarily shop-related.
  • Monthly recurring costs (insurance, replacement, etc.)
    • Make sure to include any additional monthly costs so they can be tracked.
  • Depreciation
    • Tracking depreciation costs is vital, for these costs can offset revenue.
  • Markups to recover overhead charges (staff, building costs, and shop consumables)
    • Running a fleet doesn’t just include all of the above items. Markups may also be needed to recover those expenses.

Harness the power of software to improve your fleet management budget

For over 35 years, AssetWorks has provided powerful fleet management software tools for organizations to help take back control of their budgeting. Learn how AssetWorks FleetFocus can help your budget today:

2020-09-01T15:46:30-04:00

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