Driver Reimbursement Software - Mileage Reimbursement

Mileage Reimbursement - Pros And Cons

There are two ways to compensate mobile employees for the actual travel done:

Gas reimbursement
Mileage reimbursement.

Mileage reimbursements mean the business owner can map out the projected route and pay the driver a set rate. The driver in turn is forced to make unnecessary side-trips unrelated to company business on their own dollar. Furthermore, fuel efficiency of the vehicle in question becomes irrelevant, which might save the company significantly should the automobile be a gas guzzler. THAT'S the advantage of a solid mileage reimbursement system.

A deeper look at the mileage reimbursement

With a mileage reimbursement the business owner can dictate the route and pay for an exact service - mileage is not a variable where mobile business is concerned. Yet everything else associated with driving is a variable, especially when the only driver reimbursement is the milage itself.

Imagine a salaried employee having to drive 50 miles to meet a client - their single responsibility for the day. If mileage is the only reimbursement they can expect, you can bet that employee will be tempted to speed both to the project and returning from the project - their day is finished with the end of the drive.

Managing the Reimbursement Process

Do you have time as a mobile business owner to check the mileage, compute the mileage reimbursements for multiple employees, and still manage your mobile business? Probably not. Computing reimbursements is probably the last thing you want to do and the least important thing on your list of things to do - while sitting nice and pretty at the top of the list for your employees themselves. Good thing there's a mileage reimbursement program out there designed just for your company's needs.