Business vehicle tracking for smaller companies

Managing a small fleet—whether cars are company-owned, employee-owned, or a combination—can be time-consuming. Tracking mileage, fuel costs, insurance, and maintenance can create added complexity.

Many small businesses assume vehicle tracking systems are expensive and complicated. But if you’re looking for easy-to-implement and cost-effective business vehicle tracking options, keep reading.

Determining the best vehicle tracking solution for your company depends on factors like: 

• Are vehicles company-owned, employee-owned, or both?
• Do you offer fuel cards, car allowances, or mileage reimbursement?
• Do you need to monitor driving behaviour, route history, or vehicle maintenance?
• Is real-time GPS tracking important?
• How will employees respond to being tracked?

In this blog, we will provide an overview of how you can track your company vehicles and discuss the pros and cons of each solution. Typically, if the company has a smaller fleet and you don’t require real-time GPS monitoring of the cars, you can choose a more straightforward and cost-efficient solution, such as mobile-based tracking. But let’s dive in!

Mobile-based tracking solutions and apps

Mobile-based tracking solutions use the smartphone's GPS through a mileage tracker app to track relevant journeys.

How it works: You download the app and track your journeys. However, when using mileage tracker apps in your business, you should set standard rules and settings, such as reimbursement rates and reporting frequency. Having an admin who can oversee this short process is a good idea.  

While individual drivers primarily use the app and send mileage reports to the admin for approval, the admin can access the solution from a desktop application. Many apps offer automatic trip classification, making determining the percentage of private and business miles easy. The admin will then approve journeys, keeping you in complete control and documenting all logs in compliance with HMRC.

Pros:

• Low implementation cost
• No hardware installation required
• Familiar technology for employees
• Less intrusive than permanent GPS trackers
• Easy reporting for employees

Cons:

• Dependent on employees’ smartphone battery life
• Requires employee compliance to activate tracking
• It may not capture detailed vehicle diagnostics, such as engine performance, fuel efficiency, or maintenance alerts

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GPS trackers

A GPS tracker is a small hardware device that can track an asset, including cars. It provides real-time location data, and depending on the tracker, it might also give you data about route history, speed, collisions, and more.  

How it works: When you place the GPS tracker in the vehicle, it will appear on a connected map service, such as Google Maps. Depending on your needs and goals, it can also be connected to more comprehensive management software. 

Pros:

• Accurate mileage recording
• Automated data collection
• Some devices offer vehicle diagnostic information
• Can be transferred between vehicles, depending on the installation process 

Cons:

• Additional hardware cost
• Requires installation (though typically simple)
• May raise privacy concerns with employees, especially those using personal vehicles

iBeacon technology

An iBeacon is a small Bluetooth transmitter that connects to your smartphone and can trigger your mileage tracker app. Unlike a GPS tracker, it only begins to track when the phone is close by, and the car is in motion. The iBeacon doesn’t require installation and can easily be moved between vehicles.

How it works: The beacon communicates with the employee's mobile app, automatically activating business journey tracking when they enter the vehicle. This means that trip and mileage tracking is automatic. 

Pros:

• Automated trip logging
• No manual activation is required
• Non-intrusive
• Can be easily moved between vehicles
• It can be set only to track trips during work hours

Cons:

• Requires both hardware and mobile app
• Dependent on Bluetooth connectivity
• Limited functionality compared to full telematics

Fleet management software

There is a multitude of fleet management software to choose from. The typical platform is a comprehensive software platform that integrates tracking, maintenance scheduling, expense management, and compliance.

How it works: Cloud-based software that works with various hardware options or mobile apps to provide a complete management solution.

Pros:

• All-in-one solution
• Extensive reporting capabilities
• Integration with accounting systems
• Compliance management tools
• Scalable as your fleet grows

Cons:

• Higher cost
• Potential complexity for small fleets
• It may require training to utilise effectively
• Possibly more than needed for smaller fleets

Comprehensive vehicle telematics systems

Telematics systems are full-featured vehicle tracking systems that monitor location, driving behaviour, and vehicle health. They can oversee driver safety and maintain operational efficiency, making it useful for advanced fleet management and connected car services.
 

How it works: Vehicle telematics systems consist of hardware installed in vehicles that transmit data to a central management system.

Pros:

• Comprehensive data collection
• Driver behaviour insights
• Vehicle health monitoring
• Real-time tracking capabilities
• Robust reporting features

Cons:

• Higher implementation cost
• More complex installation
• Potential resistance from employees using personal vehicles
• It may be excessive for small fleets

Barriers to implementation: What will employees think?

Besides being on top of your technical requirements and specifications for vehicle tracking solutions, considering potential barriers can also help you secure a smoother implementation. If you manage a so-called grey fleet, where employees use their private cars for business, they might be hesitant to the idea of being tracked.

To ease concerns, choose a system that allows you to track only during work hours and gives employees control over tracking settings, ensuring they can switch off tracking outside business use. Also, remember that the easier a tracking solution is, the more likely employees will comply.

Higher compliance leads to more accurate data, especially if the system isn't fully automated. Employees' comfort with technology can vary, so opt for a user-friendly, no-fuss solution. If your solution relies on a mobile app, ensure compatibility with iOS and Android so all employees can access it without technical barriers.

Example: Implementing a mileage tracker app combined with iBeacon

Let's look at how mobile-based tracking–a mileage tracker app–combined with an iBeacon could be implemented.

Scenario: Taylor & Associates, a Manchester-based consulting firm with 18 employees using their personal vehicles for client visits, faced challenges with mileage reporting and processing mileage allowance payments. Including consultants who forgot to log journeys, submitted inaccurate mileage claims, and spent valuable time on tedious manual reporting.

Solution: The company implemented a mobile tracking app with iBeacon technology. The set-up was simple: Each consultant got a small iBeacon for their car. The app detected when they entered their vehicle, tracked trips, and automatically logged business journeys with accurate mileage and routes—meeting HMRC requirements.

Benefits:

• Reduction in time spent processing mileage claims
• Decrease in reported mileage (suggesting previous over-reporting)
• Improved client billing accuracy for site visits
• Consultants appreciated the automatic trip detection and minimal privacy impact
• The finance team received consolidated monthly reports for each employee for quicker approval.

Exploring business mileage tracking solutions for your team

An effective mileage tracking solution for businesses managing grey fleets–and smaller mixed fleets–should balance employee privacy, minimal administrative burden, and compliance with HMRC requirements for mileage claims. With our Teams solution, you can streamline approvals and keep administration simple, making it easier to manage business travel expenses efficiently.

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