Cut your company's travel expenses in half with these tips
Did you know, global business travel spend is expected to exceed €1.6 trillion by 2020? This means global business travel spend is one of the biggest costs a company will have year-on-year.
As a company, you must have the tools on hand to manage this growth. So, whether you're the CFO, a Global Travel Manager or a Financial Accountant, saving money on business travel expenses should always be on the top of your list.
We've put together a list of our top tips to save money on your corporate travel.
1. Plan Ahead.
This rule is #1 for a reason.
It's always wise to book flights, hotels, etc. well in advance if at all possible. Many of these costs can dramatically increase closer to the time.
The key is to do your research beforehand. Planning ahead also means you can be smart about whom you send to meetings, events, etc. abroad. Why would you send someone hundreds of miles to a meeting if there’s already an employee there who can cover it?
2. Reinforce Your Company's Travel Policy.
Your company's travel policy is often quite detailed, which also means that there's plenty of places for expenses to slip through. Take a closer look at your existing travel policy, and review elements that may need to be updated.
This may mean reviewing the approval process for expenses, the protocol for on-site spending, and guidelines for bookings and reservations. By making all these elements clear, and more importantly, realistic, it can ensure you're not adding costs that could be easily avoided.
3. Reward Employees.
Restricting business travel costs as well as imposing the company's travel policy can increase the pain for employees. Entice your employees to save for the company money, but for their benefit. This can be done through reward schemes, time off - any way of you can think of to thank them for reducing travel costs.
4. Bleisure - More Rewards!
Bleisure is a relatively new phenomenon, brought about by the ever-influential millennials and their needs. Besides the obvious increases in employee morale, you could also save money on business flights. Flights are more expensive on Fridays, Sundays and Monday mornings - it's when business travelers typically fly!
So, if your employee is looking to add a few more days to their business trip, and decides to return and fly back mid-week - it could save you hundreds.
5. Reclaim Your Value Added Tax.
When employees travel abroad for business, incurring T&E expenses on meals, hotels, taxis, etc. - you are paying VAT (value added tax) - sometimes as high as 27%!
Managing VAT is time-consuming and tedious, and many organisations only recover a fraction of what’s owed to them. Without automation and in-house VAT expertise, it’s nearly impossible to keep up with changing laws, regulations and filing requirements in every country that charge some form of VAT.
At Taxback International, we integrate seamlessly with the largest expense management systems and corporate card providers worldwide. You can add savings to your bottom line, and increase your revenue flow by reclaiming that VAT spends in EU countries. As the leaders in VAT reclaim globally, we've not only got the powerful technology to get your VAT to reclaim but we have got our experts on-hand to ensure you're reclaiming correctly.
These are just some of the ways you can make savings on business travel all over your company. With the number of mobile workers growing every year, managing corporate travel spend is becoming increasingly difficult, but even more important.
Looking to go futher with your business travel but still keep your costs down? Talk to VAT expert at Taxback Ineternational to see how your organisation can use Value Added Tax reclaims to increase revenue.