Gas prices continue to have a significant impact on emerging and medium-sized businesses in our country. This survey that almost half of the companies are raising their mileage reimbursement to the IRS maximum of 50.5 cents per mile.

Depending on the company's prior mileage reimbursement amount, this could significantly decrease the bottom-line.

In most businesses, fuel is considered a variable cost - meaning this cost fluctuates firm's sales. In my experience, fuel often seems more fixed than variable. While many companies are seeing revenues decline, they are corrected simultaneously seeing their total fuel costs increase. Unless you have the opportunity to raise your prices to your customers to cover for the increased cost in fuel, this could create a somewhat harsh reality. About 1/4 of companies surveyed are offering flexible work schedules to help reduce their and their employees' fuel costs. Four 10-hour days per week reduce travel requirements, but may not be practical. As we have mentioned before, since necessity is the mother of invention, we feel our current fuel crisis will foster creative and unique ways to solve our country's dependence on oil. Our CFO Consultants can help you decide what needs to be done about rising fuel costs.