Programs

Financial Management


While many organizations have an accounting department for handling their finances, fleet managers must have some knowledge of the financial issues that affect their fleets. Such financial issues may include a financial analysis of various acquisition options, ability to conduct a lifecycle analysis, basic accounting principles, benchmarking, outsourcing decisions, and preparing and implementing a fleet budget. This discipline’s competencies introduce each of these areas of fleet financial management.
 

Personal Use

Personal Use describes the practice of an employer-provided vehicle being used for any function or activity other than official business and the implications this has on both the company and employee.
 

Vehicle Leasing

Leasing is the act of acquiring a fleet asset, through legal contract, where the fleet manger takes control of the asset for a specific period of time, but does not take ownership of the item.
 

Vehicle Purchase

Purchasing involves the acquisition process where the fleet manager would acquire, and take ownership, of an asset for an agreed upon price.
 

Vehicle Reimbursement

Vehicle reimbursement involves compensating employees, by a variety of methods, who use their personally-owned vehicles for company business.
 

Budgeting

The budgeting process includes projecting and planning for future financial activities in order to ensure financial control; provision of accurate managerial information; and policy implementation.
 

Lifecycle Cost Analysis

Lifecycle Cost Analysis is a mathematical model used when making a financially-based decision between two or more competing options. When done properly, it allows a fleet manager to consider all the relevant costs incurred over the lifetime of a vehicle or operation.
 

Performance Monitoring

The practice of comparing an organization’s performance with past performance, industry partners, or industry’s best practices is a valuable tool to today’s fleet manager.