{"id":922,"date":"2019-10-13T00:59:28","date_gmt":"2019-10-13T04:59:28","guid":{"rendered":"https:\/\/ezstak.com\/?p=922"},"modified":"2021-05-03T15:30:40","modified_gmt":"2021-05-03T19:30:40","slug":"fleet-budgeting-guide-four-steps-to-success","status":"publish","type":"post","link":"https:\/\/ezstak.com\/2019\/10\/13\/fleet-budgeting-guide-four-steps-to-success\/","title":{"rendered":"Fleet Budget Guide: Four Steps to Success"},"content":{"rendered":"\n
Although creating a budget may not be the fleet manager\u2019s favorite task, it is important that it is developed and adhered to in order to determine financial goals, plan for unexpected costs, find ways to save costs, and monitor spending throughout the year.<\/p>\n\n\n\n
The\n first step to developing a fleet budget is to determine your financial \ngoals for the upcoming year. Ask yourself questions like: how many \nvehicles will you buy and sell this year? What is the total cost of \noperations for each of those vehicles? What will be the annual fuel \ncosts? It is also important to leave scope in the budget for vehicle \ndepreciation, insurance costs, taxes and licensing fees. Depending on \nthe laws and regulations in your city, safety programs, training and \ncertification may be needed for each of your employees. Determining \nyour financial goals is an important first step in order to get started \nwith your budget and become aware of the items that must be accounted \nfor.<\/p>\n\n\n\n
It is key that you plan for unexpected costs in order to avoid issues impacting your budget. One of the main unexpected costs is a fuel price increase or decrease. Fuel price is uncontrollable and if there is a sudden increase, it is important that you are prepared, and your budget can handle the impact. Vehicle downtime is another unexpected cost that could come up. If a vehicle breaks down, you must be prepared to pay for parts, and labor to have it fixed. Accidents can greatly impact your budget as well. You must have the insurance to cover any damage done, costs to cover injuries, and the cost of any parts or labor needed to repair the vehicles. Including an emergency fund is a great way to protect your budget and prevent the impact of unexpected expenses.<\/p>\n\n\n\n
Once\n you take into account all the items to include in your annual plan, you\n need to estimate a dollar value for each item. A great way to complete \nthis step is to analyze historical budgets and use those figures as a \nbase for the upcoming year. It is important that you only use previous \nnumbers as a guide and remember to consider inflation. Looking at \nprevious numbers can also help you find trends and make financial \npredictions for the upcoming year. For an example, if gas prices have \nbeen steadily rising over the past 5 years, it is likely that the price \nwill rise by a similar amount next year. As well, it is a great way to \nfind areas where you overspent and find ways to cut costs in the \nupcoming year.<\/p>\n\n\n\n
When\n your budget is complete, it is important that you review it regularly \nthroughout the year. This will help you stay on track and assess the \nprogress of your financial goals. It will also let you observe trends \nand allow you to adjust figures as needed. If you notice you are \noverspending in one category, decide whether you can cut costs from \nanother category. Each time you review the budget, you can compare it to\n previous periods to see if you are on track. If not, an analysis can be\n made to find reasons for over or underspending and a plan can be put in\n place to get back on track. Remember that your budget is not a fixed \ndocument, it is flexible and can be adjusted accordingly.<\/p>\n\n\n\n
Budgeting is often a unique process for each fleet manager, however, if you determine your goals, plan for unexpected costs, analyze previous budgets, and review regularly, the budget will surely be a success.<\/p>\n\n\n\n
EZ STAK has been in business since 1998 delivering configurable fleet solutions for any vehicle.<\/span><\/strong><\/p>\n\n\n\n