Auto Allowance for Companies
There are various costs that a company incurs during its day to day working. As expected the cost structure and the proportion of various costs varies from company to company. For a manufacturing company the costs are more related to raw materials required for manufacturing whereas for a company involved in sales , the transportation costs form a major part of their overall cost structure.
In the earlier case, companies are often able to optimize their costs by option of inventory management techniques, however in case of companies involved in sales it is often difficult to minimize or optimize costs. This is because these companies often employ people who use their personal vehicles to meet the prospective customers and achieve targets sets by the companies. Therefore the company has to rely on the travel details provided by the employee. Therefore the cost management creates big problems in such companies.
One way companies can tackle this issue is by going for a Vehicle Reimbursement plan. This ensures cost minimization for the company and also lessens the burden of calculating and compensating each individual employee with his auto allowance for the month.
There are several such packages available from various consulting firms like Corporate Reimbursement Services Inc. . It offers various services like Personalized Driver Reimbursement Schedules , Program Management , Motor Vehicle Record Checks , Driver Safety Training , Employee Mobility Consulting Services and Online Business Mileage logs .
