The Problem With Fixed-Rate Expenses in Mobile Workforces

There is a wealth of travel expense management solutions available for your business (Concur, Expensify, Zoho, just to name a few examples). With many of these options, you’ll notice a common theme: you have to sign annual contracts and have a fixed number of expense reports at your disposal. 

The Problem With Fixed Costs

Fixed costs are paid by your company independent of specific business activities such as fluctuations in production or services provided. Fixed costs are not inherently bad; they make expenses more predictable for the specified time period. That being said, they aren’t always the right solution for the good or service you’re purchasing. 

Mobile workforce management is a prime example of an inappropriate application of fixed-rate costs. If you employ a mobile workforce, you likely see a lot of variation in activity throughout the year. Perhaps the summer months are hectic, but things quiet down in winter, or maybe the holidays are where you see your peak. 

Whatever the trend is among your workforce, if you’re doing things like maintaining a fleet of company cars, issuing a monthly car allowance to employees or signing annual contracts with travel and expense tracking solutions, you’re throwing money away. If something out of your control happens (like say, a global pandemic for instance), your workforce may not be able to operate at full capacity. Company cars sit idle, car allowances have no expenses to cover, and expense software goes unused.

Month-to-Month Variable Costs: A Better Way

When you’re managing a mobile workforce prone to variations in activity, you need an expense solution that can go with the flow. Instead of an annual contract, customers of CompanyMileage’s travel expense management software, SureMileage, pay monthly based on how much they actually used the platform. You only have to pay when users submit mileage and other expenses for reimbursement, so if employees are driving less one month, your company will pay less. 

When your mobile workers are driving more, we’ve got you covered there, too. Our novel approach to mileage tracking uses point-to-point calculations to ensure that mileage expenses are accurate and well accounted for. Our automated system for submitting and approving expense reports also saves everyone time, and since SureMileage integrates with all major accounting software, you can issue reimbursements faster than ever. 

It’s time you invest in an expense solution that understands the needs of your mobile workforce. Request a demo with CompanyMileage today to see it in action!