11 September 2018
The declaration of parking costs seems a simple process at first. Your employee collects the parking tickets and data, and declares them at the organization every month. All the costs that are made will be processed in the administration, after which they are compensated again to the driver. Easy, isn’t it?
Unfortunately, there are many thing that can go wrong within this process. Regardless of whether you use a parking app or buy paper parking tickets.
What are the problems, and what can you do about it?
Declaration of forgotten sessions
As an organization you’d obviously rather not pay for the forgotten parking sessions of your employees. But since 95% of all employees say they have forgotten to stop a parking session, it is very difficult to prevent this.
To help you with this, many parking apps therefore offer a reminder service. A (usually paid) service to remind you of your current parking session.
The push notifications and e-mail service are usually free, while the text reminder will cost you between €0.16 and € 0.35 per message. Considering the app will send you a reminder every 2 hours, it is a relatively expensive service. But in many cases, these costs will be lower than the costs for the forgotten session.
Read all about unsubscribing parking sessions here!
Declaration of personal sessions
Did you know that 60% of all employees say that they declare a personal parking session? And that these costs provide an average of 30% of all parking costs of an organization?
It comes as no surprise that many of the declared parking sessions, haven’t actually been for business purposes. Parking tickets from personal sessions, in a stack of business sessions, are very difficult to filter out afterwards. Even when using a parking app it is possible to get personal sessions on the declaration stack, regardless of whether it is deliberate or not.
During the administration you could double check the parking tickets on time and location. Doubtful parking tickets can then be discussed with the employee, and possibly filtered out. But is that even profitable?
Parking administration
The parking administration is very expensive in relation to parking tickets. The manual processing and checking of parking tickets takes a lot of time and is therefore very expensive. A study by KPMG has shown that the average processing of single parking ticket costs a company €7. In many cases, this will be even more than the parking itself!
Expenses
The most obvious alternative is for companies to offer an expense allowance. By doing so, the organization gives his employees a pre-arranged amount of money to cover all of his travel expenses. It is the easiest way for a company to compensate all employee’s travel expenses; without the administrative hassle!
An expense allowance must be a realistic compensation for the costs incurred to carry out the work. Organizations always have to draw the line for an expense allowance; all employees receive the same remuneration (often in relation to the kilometers made). This means that either a single amount should be set; or a certain amount per kilometer. Of course, you wouldn’t want to cause any tensions in your team!
But the fair distribution is financially disadvantageous to the organization. Many of the employees will make less, or even no parking fees, but will still receive compensation.
Parkd
At Parkd, we understand that you have better things to do than focussing on your parking administration.
Parkd’s world first technology makes it possible to fully automate your parking session. Parkd starts, stops and pays automatically for all your parking sessions.You’ll never pay too much again and parking fines are a thing of the past.
On top of that, it is possible to save 90% on parking administration. How? Parkd sends a single invoice for all of a fleet’s parking sessions, registered per license plate.
Curious for more?
* Figures from KPMG