End of financial year highlights need for FBT reporting

As tax returns become more technical and mistakes costlier, the benefits of fringe benefits tax (FBT) reporting to fleet managers couldn't be clearer.

It is always a tricky situation making sure all the different tax brackets are covered and that you are paying the lowest amount possible. One way to make the most of FBT reporting is by investing in fleet management software.

By using fleet software, businesses can get an accurate gauge of all odometer readings and fleet expenditure to allow more time for other areas of the fleet.

Here are a selection of benefits FBT reporting provides.

Real-time tracking

As fleet management software tracks fuel consumption and vehicle use, fleet managers will be warned of any vehicles that could jump up tax brackets as well as those that could fall.

By tracking and reporting, this software enables organisations to minimise their FBT exposure and lower their overall costs.

Specific fringe benefit types

Fleet managers can use two different methods to determine the value of the motor vehicle benefit - Operating Cost Method or Statutory Formula. It can be hard to work out which method to use. This is where fleet software comes on board.

When fleets invest in fleet management software, they receive an abundance of support that can put together an accurate comparison between the two and ensure that each individual vehicle is in the right bracket.

If any new vehicles are purchased, Smartfleet can predict FBT costs to bring it in line with the rest of the fleet.

Tracking report

Knowing the amount of kilometres travelled by each fleet vehicle is critical to the running of any business. Fleet management software can provide a detailed account of how many each has done.

It will also give fleet managers the number of extra kilometres that could be travelled until the end of the FBT year, which can reduce the amount payable.