In April, South Africa absorbed a massive fuel hike, off the back of an economic slump and Covid-19 year filled with businesses closing and many consumers without work.

Unfortunately, when the fuel price increases, so do every other cost on your balance sheet.

Anything that requires transportation, delivery, or movement impacts your bottom line from your staff to essential goods and services.

Although traveling to work and clients reduced for many people, companies adopted remote working and online meetings, many were still reeling off a bad economic year.

With the most recent increase, which takes us over the R20 per liter mark, we need to assess everything impacted in the business.

Here are some tips on how to assess and reduce your fuel costs in your business:

Take a look at essential travel for your business. Cut down on any non-essential or nice-to-have journey.

See if your staff can work remotely. A few days a week in the office and some at home can make a difference to their budget.

See if your staff can change working hours to drive in off-peak times. By doing this, you can reduce fuel consumption, not sitting in heavy traffic jams.

Reduce in-person meetings if you can. Virtual meetings are great, reducing travel time and wasting productivity time.

Optimise your internal processes

Manage your delivery and transport logistics to be more efficient. Plan routes and delivery days to increase efficiencies and consider alternative options like delivery scooters. For small package deliveries, using Uber Package, for example, will reduce your operating costs.

Outsourcing or paring up with your neighbours can reduce costs and share the delivery fees. Courier companies are cost-effective these days, so call an online meeting and see what they offer you.

Manage your tax efficiencies. Your company fuel and transport running costs are tax-deductible as a business. Ensure you keep records of everything so that you can claim back the tax on the fuel bills.

Everyone needs to tighten their belts. Instead, do it sooner than later and ensure your business survives the festive season in the black.

Bizcash is a South African company that wants to grow SMEs in SA to ensure a sustainable future for all.

Speak to our team to find out more about how we can support your business with alternative funding options. Get in touch with us on 0861 93 93 93 or email us on info@bizcashscf.co.za or contact us here.

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