Save on your tax bill
Depending on the country or jurisdiction, travel and client meal expenses are tax deductible, and for sole proprietors and small businesses, this could mean paying significantly less income and self-employment tax. Find out what you’re entitled to claim and make savings on your tax bill.
File expense reports ahead of schedule
Hectic schedules mean many business travellers end up filing expense reports late. This increases the chances of losing receipts, and ultimately leads to you covering costs that could have been claimed back.
According recent research in Hong Kong by global travel and expense management solutions company Concur, 65 per cent of problems that arise from processing travel expenses are due to lost receipts.
Wise up on T&E policies
Business travellers should pay attention to T&E policies to avoid any out-of-policy claims. Some companies don’t have a clear directive, which makes it even more challenging. If expenses are processed manually, the finance team will also need to manually check the claims against the T&E policies and human error can be incurred in such a process.
Pre-order currency
Currency exchange counters located at airport terminals may be convenient, but virtually all of them offer poor exchange rates, so visit your local bank branch prior to travelling to ensure your cash goes further. Alternatively, order your foreign currency online a few hours’ in advance from a currency exchange retailer such as Travelex for a more competitive rate, and collect it on your way to the airport.
Select a roaming plan
Many travellers forget to adjust their data charges, which can lead to a hair-rising scare when the phone bill arrives. Selecting a roaming plan may be costly – AT&T offers a US$30 calling package for 80 minutes’ worth of overseas calls for example – but at least you know what you’ve paid for. Talk to your phone provider to learn about the best deals. It may even be worth travelling with two mobile phones, so that you can use a local SIM card on one of them and take advantage of lower rates.
Dodge airport charges and consider stopovers
Location, location, location -– the cost of airfares differ greatly between airports and this can provide you with a chance to save some serious cash. For example, United Airlines operates flights from Hong Kong into both Newark Liberty Airport and John F. Kennedy Airport (JFK). However, while it operates fewer services to Newark, the airfares are cheaper compared to flights headed for JFK. In addition, the carrier doesn’t offer direct flights from Hong Kong into JFK, and there is a short layover in San Francisco. So if time allows, consider a stopover for lower airfares.
Choose cabs carefully
Many taxis introduce an “airport fee” into their fares. Compound this with extra costs such as baggage or the midnight surcharges levied in some countries, and you may end up spending way more than you need. In Singapore for instance, getting a cab from Changi Airport will incur a location charge of at least S$3 (US$2.4). Consider taking a short walk to the Crowne Plaza Changi Airport Hotel to hail a taxi from there instead.
There are seven cab firms within Singapore alone, each with different pricing structures. Travellers should be aware of the fares for each taxi-type. Look for the blue Comfort taxis or the yellow Citycab and avoid any of the ‘luxury’ taxis, especially the black Chrysler 300C, which costs around 50 per cent more than others.
Several other cities in the region also have different types of taxis charging significantly different prices. In Seoul, for example, it costs about KRW50,000 (US$47) from Incheon International Airport to downtown Seoul in a regular cab, but a deluxe cab – which are always black and have a yellow sign on top – will set you back for KRW80,000 (US$75) for the same distance.
Think like a local
Travellers from the US and Europe may think that paying HK$290 (US$37) for a taxi from the Hong Kong International Airport to Central seems very reasonable, given that all trips from JFK to Manhattan, for instance, are charged a flat rate of US$52. But more savings can be made if you queue up alongside the locals for the Airport Express train, which reaches Hong Kong’s hub in less than half an hour and costs HK$180 (US$23) for a roundtrip ticket; a one-way journey is priced at HK$100 (US$13).
Travel tips for the savvy traveller
Don’t delay admin
The sooner you sort out your expenses, the less likely you are to forget putting them through. Always carry an envelope designated for receipts instead of leaving them in your pockets.
Every little helps
According to a study by Concur, 22 per cent of us are too embarrassed to claim back small amounts even if entitled to. But remember these all add up – the study also found that 20 per cent of workers have unclaimed expenses of up to US$433.9 annually.
Know the rules
Understand what you are entitled to claim back – each company will have a different policy – and don’t spend money on things you won’t be reimbursed for.
Download a receipt app
Expense Magic’s free iPhone app enables you to photograph and log receipts on your phone. You can then manually enter receipt details into the provided expense report template. For a monthly fee of US$13.99 (there are also packages you can choose to lower the monthly average), the company will keep track of your receipts and send you a report with a breakdown of your spending.
Book rooms wisely
Would it be more cost-effective to book a hotel situated close to the city centre to reduce taxi fares? Think about how you can cut down on incidentals.
Use a club lounge
Consider booking a club room so you can enjoy benefits such as access to the club lounge, which can be put to good use if you plan on entertaining clients. Hotels will usually charge for drinks and food for non-club room guests, but sometimes discretion can play in your favour.
Take public transport
In cities such as Hong Kong, Seoul and Tokyo, public transport networks are very efficient, so avoid hopping into a taxi if you have time to spare. During peak hours, taking a cab might end up taking longer than
the underground.
Ask for tips
Online itinerary planning app Tripit can help connect you with people in the know. You can also utilise online forums such as businesstraveller.com/discussion to ask like-minded travellers for good-value recommendations.
Search for deals
The boom in websites such as www.groupon.com, where you can purchase discounted gift certificates for hotels, restaurants and bars, can save you money without compromising on quality. A weekday buffet at the Royal Pacific Hotel & Towers in Hong Kong, for example, costs HK$289 (US$37.3) and represents savings of 35 per cent.
Join a club
Joining a private members’ club may be expensive but it gives you kudos and can prove value for money when entertaining clients, as you may be able to use restaurants and leisure facilities, and gain reciprocal access to other clubs globally.
Become a regular
Have a local restaurant where you take clients, and negotiate a deal for bringing in repeat business.
Entertain a group
Instead of taking one person at a time to dinner, organise a meal for several contacts at once if that’s appropriate. “The bill might be a bit bigger in singular terms, but compared with four or five individual evening meals, it works out cheaper,” says Isabel Montesdeoca, Concur’s senior vice-president and general manager for Europe, the Middle East and Africa. “Also, when you have a group of people together they get to know each other, there’s more conversation flowing and this turns out to be a much better investment of your time.”
Do lunch
Evening meals generally rack up bigger bills, as they last longer and more drinks are consumed. Express lunch menus, on the other hand, offer good value for money, as do standard lunches.
Go for a set menu
Ask restaurants if they offer a fixed menu option, particularly for bigger groups – à la carte dining is more expensive if your guests opt for
three courses.
Choose wine carefully
Ordering the most expensive vintage on the list may impress clients but probably not enough to make it worth the expense. Ask guests if they’d like to choose the wine – that way they’ll be happy with it and will likely opt for a cheaper one out of politeness – although bear in mind that this can backfire.
Use an expense management system
Concur has a product called Concur Mobile that enables company employees to take pictures of receipts on the road and upload expense reports. This time-saving app not only spares employees from filing expense claims. Another system, Salesforce Connector, enables colleagues to share itineraries and arrange to split expenses such as taxi fares.
