The rise of mobility within the corporate sector promises great freedoms and benefits to employers and employees alike. One area that may create difficulties the accounting component. Careful thought needs to be given to the management of much higher transaction volumes.
For most companies, the current fleet accounting will be relatively straight forward. Vehicles will be handled as an asset, whether "right of use" assets when leased or as a fixed asset when financed some other way. Regular expenses such as fuel, repairs, maintenance and so on will be deductible along with renewals such as registration costs or insurances.
A key feature in the traditional vehicle fleet is the one to one ratio of employees and vehicles. Each vehicle is assigned to one employee and the number of vehicles is thereby limited.
Maintained Leases Reduce Transaction Volume
This means that where finance is through a maintained operating lease, there will be one single transaction for the vehicle and associated maintenance and renewals. Transaction files will be provided for fuel and road tolls and then there may be parking expenses. The net result will be perhaps 7 or 8 transactions per vehicle in total. If we count each fuel and road toll as a separate transaction, this might increase to probably 20 - 25 transactions per vehicle on average for each month.
Adoption of a total mobility solution means that employees will use whichever solution is most suited to their specific circumstances on the day and for the task at hand. On occasion this will still mean a company vehicle but more often it will mean car share, ride share, taxi, bicycle, public transport or something else.
One obvious side effect of this approach is the enormous increase in the number of transactions for each employee.
Transaction Volume Skyrockets for Mobility
A complete mobility solution will provide access to a wide range of mobility modes (eg rideshare, carshare, bicycle, public transport) and to a wide range of providers. For the solution to be workable, it will offer staff the ability to use a single system for both private and business use, with a chargeback or salary sacrifice system in place for personal use.
For a typical employee, this will mean an average of 3 to 5 transactions per day or 100 – 150 transactions per month. With transaction volume increasing up to 600%, careful thought needs to be given to transaction management.
The Solution is CMaaS
The CMaaS solution anticipates the transaction volume and diversity of a complete mobility solution and incorporates a customer designed accounting interface for all mobility transactions. In collaboration with our accounting and tax partners, CMaaS has designed technology that first examines each transaction from a policy perspective (e.g. “Is the Employee allowed to take an Uber for commuting?”) and based on the answer, allocates it to the most suitable budget, tax bucket and ERP directory.
The technology is already in place to provide your business with a complete mobility solution in Europe, Australia and Asia. Contact us today for more detail or visit our website at www.cmaas.solutions .