4 Tips For Budgeting Business Travel In The New Year

Emma Sturgis

January 05, 2017

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There is a lot to take into consideration when sitting down to come up with a business budget for the coming year, but one of the trickiest to figure out is travel. Travel expenses can vary widely and it's not something you're in complete control over, as employees have access to company funds when they travel. Still, the best thing you can do is plan ahead. This guide will go over four helpful tips to help you include travel accurately in your business's budget.

1. Take Care Of The Rest Of Your Business First

No money should be budgeted into employee travel that is taken away from core, important elements of your business. Good examples include payroll and office space rent. In other words, take care of your needs first. Stripping money from departments or fiscal categories that need them could very well threaten your business's very survival in both the long and short term.

2. Come Up With A List Of Likely Trips

When you start planning for your travel budget, consult with the necessary members of your team and review past calendars to reasonably determine how many and which trips are likely to take place in the coming year. Are there specific events your company attends every year? Take all of them into consideration and check expenses from prior years to make an educated guess for this year.

3. Use A Corporate Habitat

Corporate Habitat is a good option for your business when seeking accommodations for your employees. They are fully-furnished apartments that specifically cater to businesses and can be rented out both in the short and long term. They're friendly on your budget too, because you won't have to estimate hotel bills when you know exactly how much renting a unit will cost. They're particularly an excellent idea if you have to send employees to a specific city or area on a regular basis.

4. Set Travel Parameters

Without being overly stifling, if you do not have a detailed travel policy in effect at your business already, one needs to be developed and put in place. For example, you can stipulate that public transportation should be used whenever possible. You must also lay ground rules for what is and isn't acceptable when it comes to tips, eating out and most other expenses you would expect to occur while on a business trip.

Don't force your employees to travel in poverty, but stress the importance of staying within budget and being frugal. And, of course, accurately budget for travel expenses in the first place. With all this in mind, you should be able to make a spot-on budget for your next fiscal year.