Written by Sonya Franklin, Customer Success Manager at LBM Fleet
In a digital world, where most workplace functions are managed online, it’s interesting to observe outdated methods and processes still being used by fleets.
Many organisations with fleets are still using paper logbooks that require manual entering of data from drivers, organising and filing for administration teams and endless follow ups on compliance with little to no visibility for managers.
This may have been the go-to method in the past, but with paper logbooks, there are many missed opportunities that an electronic logbook can streamline and optimise for your fleet now.
For many organisations, the transition to electronic logbooks is instant with the data that previously took months to crunch, is now available any time. This allows fleet teams to make proactive decisions rather than reactive, for example vehicles close to overrunning lease kilometres can be returned early or used lightly through to the end of contract.
Benefits of an electronic logbook for fleets
Reduced administration work and improved efficiency
Electronic logbooks can heavily reduce administration time for drivers, managers and finance teams. There’s no need to scan and manually enter logbook data and drivers don’t need to write down odometer readings, date, time and trip whereabouts.
With an easy classification process, many electronic logbooks allow for simple classification at the end of trips, improving productivity, consistency, compliance and accuracy.
All logbook information is usually kept online, and a good system should be able to reconcile and report on business and personal use ready for FBT reporting.
Cost savings
By using an ATO compliant FBT logbook, you may be eligible to use the operating cost method rather than the statutory method when calculating your FBT bill.
The operating cost method allows you take the private use percentage and calculate it against your operating costs. This method can only be used with a valid logbook and can significantly reduce your FBT bill. The statutory method calculation only offers a flat 20% of the vehicle value however, with no operating costs or private use considered, usually making it the more expensive method, but no logbook is required.
LBM proudly holds an ATO class ruling – CR2014/27 for our FBT logbook which gives our clients (legally binding) peace of mind that our reports can be relied upon.
Other cost saving benefits include time savings at all touchpoints from drivers completing their logbook to finance teams consolidating data and preparing reports. An electronic logbook should provide all the reporting you need to submit a valid logbook.
Improved compliance
Driver compliance is substantially improved with electronic logbooks compared to paper. Knowing which driver is assigned to a vehicle, or which pool vehicle has been booked, makes it easy for drivers to complete their logbook classifications. Simple backend processes for managers to follow up are usually available in a good system with compliance rates managed in real time. This further improves cost savings as the more valid logbooks your organisation can demonstrate, the more money that can be saved on FBT.
Enhanced data for decision making
With an integrated system, the logbook is just the start to unlocking opportunities for your fleet. Logbooks that capture trips not only report business and personal use percentages, but can give you insight into actual use, why and how your vehicles are being used, allowing you to make better decisions for your fleet.
Does the fleet vehicle mix work based on current usage data, should vehicles be reassigned to maximise your lease packages, can you identify who was driving when an infringement was made? Holistic fleet reporting via logbooks makes light work of these and many more metrics.
How LBM Fleet makes the transition easier
LBM is well experienced in helping organisations of any size and from any industry transition away from paper logbooks to our cloud-based solution. We offer a comprehensive cloud-based logbook solution, that was designed by tax professionals and ready for all fleet types including assigned and pool cars.
Adopting a new system in your business will always have its own challenges. Our team support our clients as they work through the ‘mundane’ tasks critical to achieving their end goal. From change management processes, communication, training, installation and hypercare, LBM goes the extra mile to ensure a successful roll out.
“I’ve helped numerous organisations from 20 vehicles through to 400+, transition away from paper logbooks to our electronic solution.
Electronic logbooks have been a game changer for many organisations I’ve worked with, by not only saving them thousands in fringe benefits tax (FBT) but also freeing up key staff due to reduced manual handling and providing data to make timely and crucial fleet decisions.
The time, visibility of fleet behaviour, costs savings and support for each client far outweighs the cost of our solution, allowing fleet teams to make smart decisions for their business.”
Sonya Franklin, Customer Success Manager at LBM Fleet
Electronic logbooks that capture ATO compliant trip data and have a simple classification process and provide real time reporting, deliver a higher driver compliance, use less administration time and increase FBT savings.
Contact the team today to discuss your transition.
