Category: Grow Revenue

One of the most well-known quotes about taxes is “in this world, nothing can be said to be certain, except death and taxes.” Even in 1783, people realized that taxes are a constant! Interestingly, tax benefits & GPS fleet tracking go hand-in-hand.

What is the relationship between tax benefits & GPS for fleets? They both relate to fleet management. Part of fleet management includes maximizing tax benefits while reducing tax costs.

Three examples of tax benefits & GPS fleet tracking include:

• S. 179
• Carbon tax
• Business tax benefits

Section 179 (US)

Section 179 is a tax opportunity for GPS tracking programs. Here’s a quick tax review.

Normal Asset Tax Treatment

The IRS allows for “deprecation”. In other words, depreciation accounts for an asset’s wear and tear. As a result, businesses are allowed to deduct a percentage of assets as a tax credit.

What is Section 179?

Section 179 provides an opportunity between tax benefits & GPS fleet tracking. With this section, businesses can elect to deduct $2.5 million of equipment purchase in 2018. Hence, fleets can include out-of-the-box programs like fleet tracking tools in this exemption.

How does the math work?

Think about a $100,000 investment and a 30% tax rate. Normally, only a small portion of $100,000 is allowed to be deducted. However, with Section 179, fleets can get a $30,000 tax credit by deducting the full $100,000 at the 30% rate.

Carbon Taxes (Some states & provinces)

Some provinces and states have carbon taxes.

What is carbon tax?

Carbon tax means that the government collects tax money for each metric ton of greenhouse emission. For example, in Alberta, the government is collecting $10/ metric ton of 2018 emissions. That rate is expected to increase to $50/ metric ton by 2022.

How do fleets cause emission?

Within fleet businesses, operating company vehicles is one of the biggest contributors to gas emissions. Some of the common causes include:

• Poor driving habits. Drivers that drive aggressively or leave their vehicles idling are costing their business! Bad drivers increase total business cost by both wasted fuel and carbon tax.
• Bad vehicle maintenance. To counter the first bullet point, it’s not always the driver’s fault. Sometimes, bad vehicle maintenance leads to bad vehicle fuel performance. Old and aging vehicles produce more emissions than newer vehicles!
• Route management. Finally, some fleets travel inefficient routes. Drivers waste time on the road because their routes are longer than needed.

How can fleets reduce emission?

Many fleets have policies and programs to counter gas emissions. For example, some fleets have a zero-idling policy. Zero-idling means that drivers are not allowed to idle at all. Fleet managers can look at watchdog reports to flag rule breakers.

Beyond no-idling, some other ideas include remapping driver routes, regular vehicle maintenance, and driver training.

Business Tax Benefits (Some states & provinces)

S. 179, discussed earlier in this article, talks about equipment purchase. What about tax benefits after the equipment purchase? Two examples of tax benefits earned during fleet operations include business-use expenses and PTO.

Business-Use Expense

When vehicles are used for business, it is classified as a business expense and is tax deductible. One of the biggest challenges, however, is administering the tax.

“When you apply for tax credits, you have to be very careful to submit the right numbers. We used to double check our files for accuracy,” said a fleet administrator. “Nowadays, most fleets have a tracker to record business use miles. We can trust our tracker to get the right numbers.”

PTO

PTO, or power take off, is another tax benefit. Some states and provinces allow businesses to get a rebate when vehicles use PTO. As a result, PTO equipment such as snow plows, cleaners, and construction vehicles track their PTO hours.

Interested in tax benefits & GPS fleet tracking? Ask a GoFleet fleet consultant.

Links

Wood Business: The impact of a federal carbon tax on Canadian businesses

Section 179: Section 179 Deduction

Here is a FAQ. How much does fleet tracking cost?

Fleet tracking consists of both hardware and software. In this post, we will explore each of the two areas to determine how much does fleet tracking cost.

Hardware & Installation

Hardware is the first part of the total fleet tracking cost. There are usually three hardware alternatives:

Mobile tracking

Mobile tracking is the first hardware alternative. In other words, the fleet tracks its vehicles through their drivers’ phones. A lot of mobile apps are good enough to provide location updates and even location reports.

Of course, since mobile tracking uses a driver’s smartphone, there are no hardware costs and no installation costs.

Plug-in device

Device tracking is the second hardware alternative. In this scenario, plug-in devices are connected to vehicles. Compared to mobile tracking, a plug-in device provides additional data such as advanced driving habits and vehicle diagnostics.

Device costs vary based on the model. For example, some online products can go for less than $100. However, business-level devices can cost up to $200 – $500.

What about installation? Customers usually self-install plug-in devices and save on installation charges. Simple plug-ins can be done in a few seconds. Secure discrete plug-ins, on the other hand, might take the average person 10-15 minutes to install.

Hardwired solution

Hardwiring is the third hardware alternative. Typically, hardwiring is required when vehicles are too old to have plug-in models.

Hardwiring usually has the highest cost of the three alternatives. Since hardwiring requires professional installation, the start-up fee could cost more than $1000. Another cost is lost business time. The business loses revenue-generating time when the vehicles are in the shop rather than on the road.

Software Service

The software is the second part of the fleet tracking system price. Why is there a monthly charge? There are two big reasons:

Cell/satellite service. Here’s a role reversal – how much does fleet tracking cost to a provider? Providers need to pay for SIM cards, cell service, or even satellite service to provide vehicle tracking. This cost is reflected in the monthly fee.

Software and service. Fleet tracking doesn’t mean looking at a map all day! Fleet tracking systems are similar to office programs like Microsoft Office. The program collects data and generates reports. It is also supported by success teams that train customers, solves technical problems, and suggest data-driven business solutions!

So how much does fleet tracking cost monthly? There are usually two ways to charge monthly – on tier plans or on customized pricing.

Tier Plans

Tier plans are similar to cell phone plans. Just like cell plans, there are different levels of service and pricing – all with their own features! In that case, one customer might pay $25/month whereas another pays $80/month!

Customized Pricing

Customized pricing, conversely, is more like an à la carte service at a restaurant. You only pay for what you use! “Some customers only need fleet tracking for 2 or 3 reasons,” said a sales manager. “Customers sometimes are locked into bundles where they don’t need the other 5 features and are being overcharged. Instead, a better way to retain customers is balancing functionality with pricing.”

Contact our consulting team to discuss pricing an estimate!

 

Manage Diagnostics with OnCommand Connection

 

The Telematics industry is becoming more transparent allowing fleet managers to efficiently track company fleet and gain engine diagnostic information and measure fleet productivity all using fleet management software.

In today’s economy, companies are trying to reduce operating costs by any or all means. As one of the top business operating expense, fleet managers are under pressure to keep costs as lean as possible while continuing to maintain productivity. This often leads to keeping vehicles on the road for an extended period of time leading to a huge cost build-up in the long run.

Company operations and profitability is most affected during vehicle downtime and to help fleet managers avoid make clouded decisions GoFleet has partnered with OnCommand Connection for engine diagnostic information and immediate maintenance. Basically, a partnership to help identify the potential problem beforehand, lower repair costs and eventually increase fleet uptime.

How Can GoFleet Help?

For Sales Managers:

Offering an effective fleet management program will help sales managers offer an all rounded service i.e. Vehicle + OnCommand Connection. This adds value to the dealership by providing customers with the ability to streamline their business.

How we help you sell more vehicles:

• We add value to your vehicle sales by offering various Fleet Management Programs for resale:
• Oncommand Connect, Tracking, Dispatching, HOS/DVIR Compliance, Reefer Temp Monitoring, Fuel Card Integration and Work Form Programs.
• We help onboard new customers with their Fleet Management Program, enhancing purchasing experience.
• We help your customers understand how to save money and work with your dealership on service, ensuring they come back to you for future purchases.

For Service Managers:

Maximizing service and providing the best customer experience can be especially challenging when you don’t have up to date information on the health of your vehicles.

How we help you increase service and improve customer experience:

• Get up to date odometer and engine hours without having to call the customer
• Get notifications on high priority faults in real-time via OnCommand Connect

To learn more about OnCommand Connection contact us and we will be happy to discuss its benefits and features with you!

 

Smart Fleet Fuel Management: your next step to maximizing company profits

 

GPS Tracking currently allows you to track, locate and communicate with drivers in real time. Fleet operation managers use the solution to manage their drivers and maintain their fleet through location tracking and custom reports that address and identify daily operations that need attention. Along with the responsibility of managing both drivers and fleet comes the accountability of lowering operating expenses.

Operating a cost-effective and efficient fleet often requires expertise in fleet expenses. With fuel being one of the largest contributor to the increase in operating costs, it is imperative that fleet managers understand the importance of minimizing expenses that can be controlled and avoided. So, how can you really maximize fuel management?

Smart Fleet Solutions

Managing fuel costs often begin by preventing unauthorized access to fuel supplies and implementing solutions that track your company assets. Although tracking is a small step to fuel management the solution is designed to measure fuel performance by:

• Tracking vehicle and driver behaviours in real-time
• Generating reports and scorecards on how drivers are contributing to fuel costs
• Providing drivers with optimized (fuel-efficient) routes
• Preparing detailed reports to assess the financial impact on fuel while idling, fuel usage and more

The reports provide an insight into the amount of fuel consumed idling or dangerous driving. The system is also able to generate reports that help companies gain tax rebates(IFTA report). IFTA can be generated to help significantly reduce paperwork and compliance burden for fuel tax reporting if vehicle carriers travel in other provinces/states and purchase fuel in one jurisdiction, but use the fuel in another jurisdiction.

As a solutions company we understand the importance of managing fuel-wasting behaviours further leading to integration with third party systems such as Fuel Cards.

A fuel card is similar to a credit card where fuel card transactions, vehicle data and driver behaviours can be tracked by matching vehicle location and the amount filled routinely. Giving fleet managers the knowledge and tools to manage fuel spent; fuel cards will eliminate the amount of receipts submitted regularly and also accurately verify the location of the fill up and amount filled into the vehicle.

Acting as the most secure, efficient and simple way for fill ups, the program will alleviate some of the pressure off fleet managers by allowing them to focus not just on matters of security but also on wider operational concerns.
Fleet managers are able to analyze transactions according to specific criteria’s such as where, when, and by whom the fuel card was used. The system will be able to also provide personalized alerts if a payment occurs outside the “normal” pattern or exceeds a pre-set maximum fill-up limit. This, in turn, means potential fraudulent behavior can be detected early and fleet managers can respond swiftly.

Find out how GoFleet’s fuel management strategies can help you minimize expenses by contacting us at 1-888-998-1122.

Estimate Your Total Savings With Our ROI Calculator

Have you ever estimated how much money your company can save with telematics technology? The implications of using a tracking solution goes beyond improving security and better monitoring employees. It is in fact more useful when organizations understand how the solution can gain true savings and return on investment (ROI).

Along with tracking your employees, it is significantly important to measure your return on investment. Monitoring the location of your vehicles alone will not have a positive impact on your bottom line unless close attention is paid to the difference in time spent idling, number of repairs, negative driver behaviours and more.

For some, the cost of the GPS solution has left fleet managers to avoid investing in tracking. And to help quantify the value of our fleet solution, GoFleet has created a tool to help with your business decisions. The ROI calculator is designed to give you an insight of expenses you could be be potentially saving and it can be customized to meet your business profile to show you how much money can be reinvested back into your company as shown in the example below.

The calculator instantly shows you an estimate of what can be saved if fleet operation managers choose to implement a fleet tracking system. Although these figures are just estimates, there is a chance that companies can save even more when drivers become familiar with the solution and become more productive. To compliment the ROI calculator fleet managers should identify the areas that require improvement prior to installing the tracking solution. This can involve anything from increasing fuel expenses, higher maintenance costs or even decreasing productivity. Identifying the issues that need attention can then help outline the true purpose of the solution by comparing the “before” and “after” figures of cost savings.

In any buying decision it is crucial to explore all your options, read customer reviews, and learn more about the costs involved in the daily operation of your business however it is more important to gain a ROI figure along with the final decision made.

 

To try our ROI calculator for yourself & see your potential savings,
simply visit our homepage:
gofleet.com

Global Positioning System Technology Benefits Customers

Companies are finding that Global Positioning System technology does not just benefit fleet management, it also benefits their customers. Many of these companies did not expect their customers to have more customer satisfaction or a better overall reputation.

When a company implements a GPS fleet management solution, they are able to provide more accurate time of arrivals, short time windows, quick dispute resolution, and they are able to take care of their customers in a more efficiently. In addition, the GPS technology helps them serve more customers each day while letting their employees get home as fast as possible.

Accurate Arrival Times

Customers really appreciate being given accurate estimated times of arrival. They will learn that they can trust the time you tell them your employee will arrive at the job site. Unlike many of your competitors, your customers will not be stuck waiting all day for your employee to show up at their location.

Short Time Windows

Since you will know exactly where all your vehicles are at all time, you will be able to provide your customers with short time windows. Instead of telling your customer that your driver will arrive sometime between 9 a.m. and 5 p.m., you will be able to provide a 30 minute service window. You will have your routes conveniently planned out before your drivers leave for the day.

Quick Dispute Resolution

Your dispatchers will be able to closely monitor all of your drivers’ whereabouts which will enable a fast customer dispute resolution. It can be difficult to resolve disputes without the proper documentation of when your employees were on site. With GPS technology, you will have accurate records of all your service calls.

Efficiency

GPS technology allows you to serve your customers more efficiently. Your dispatchers will be able to send the closest driver to your customer’s location. If your customer calls with an emergency service call, you will be able to get a driver right out to them.