Many businesses have employees who need to travel outside the office to get work done. This presents the company with two primary options: implement a company car program or provide vehicle reimbursement. Let's go over the pros and cons of a vehicle reimbursement program. Â
Perhaps the most important reason to use a vehicle reimbursement plan is to make sure businesses are spending their money effectively. A company car can be a massive up-front investment. No matter how strict the rules are, businesses will also wind up paying for some personal usage of the car. Â
A vehicle reimbursement plan can also reduce your liabilities, risks and associated expenses. With a company car, an employer can still be responsible for accidents or incidents. This applies if it occurs during business or personal drives. This could lead to increased insurance costs. Â
It's nearly impossible to choose vehicles that will satisfy all your employees. With a vehicle reimbursement program, your employees have agency over what they want to use. If one person wants to use a big truck and another wants a fuel-efficient hybrid, they can. This can potentially boost morale. Â
A vehicle reimbursement program can only work if your employees have reliable access to cars. This isn't a huge problem for most companies. But, it's still something to keep in mind because it could impose an undue burden on some of your workers. Â
If your line of work requires specific types of vehicles, providing cars for your workers may be a better option. This could be rugged, all-wheel drive cars or vans. Your employees may not have access to these specific types of vehicles. Â
Companies are often hesitant to do a vehicle reimbursement program because of the difficulty of tracking and maintaining it. A good program needs to be highly accurate and distinguish between business and personal drives. Also, it has to be easy to use and offer robust reporting. Â
Choosing the right program for your business can be a challenge. But, don't ignore how products and technology can help ease some of your concerns. For example, mileage tracking and expense reporting for teams used to be a giant pain. But thanks to fleet management solutions like MileIQ for Teams, businesses of all sizes can implement effective vehicle reimbursement programs. Â Â
MileIQ for Teams provides accurate and accountable mileage tracking, as well as robust reporting for expenses. It's also a simple app with a pleasant interface, ensuring your workers will actually use it. Finally, it offers world-class support and security, so you can spend less time worrying about mileage and more time growing your business.