The importance of your odometer reading

Published by Michael Bithell on

Entering a correct odometer reading is extremely important as this ensures that:

  • You are receiving correct service reminders
  • Your Fringe Benefits Tax (FBT) reporting is accurate
  • Your kilometres travelled are accurately reported
  • Your fleet utilisation reports are accurate
  • Your fuel consumption reports are accurate
  • Your future fleet/individual vehicle running costs are accurately reported
  • You will receive accurate vehicle replacement reminders
  • Your cost per kilometre reporting will be accurate
  • You will be able to report accurately on the current market value of your fleet/individual vehicles

As a fleet manager or novated leaseholder odometer readings have additional implications. For the fleet managers conscious of fuel usage and trip times odometer readings are a critical part of a fuel and logistics management policy. Additionally, kilometres covered can have implications for vehicle-related taxes such as FBT.

Entering an incorrect odometer reading can throw out all of your reports and mean that you won’t receive accurate and critical information regarding your fleet.

Best practices to follow when entering your odometer reading

There are several ways to ensure that you enter a correct odometer reading every time you submit an odometer reading:

  • Always enter the exact odometer reading. Do not round or approximate it.
  • Take a photo of your odometer reading before you leave the car, or write it down in your phone or on paper. This makes it easier to communicate at the register.
  • Use the exact odometer reading from the time you are reporting the odometer reading. Do not enter odometer readings from your memory.
Categories: Business