Company Spending, The Right Way
Thursday, May 5, 2016
Having access to company funds is a privilege, not a right. You’ve made it to where you are - a position of authority within your company - through all of your hard work, dedication, and intelligence, but sometimes company spending can get a little tricky.
Let’s take some time to clear up some of the myths and mysteries about the company’s line of credit, when to use it, and how to ensure your spending doesn’t cost you BIG TIME down the road.
Meals: Millennials (those born after 1980) spend more on going out to eat than any other generation alive today. How much? According to an article from Eater, $174 per person, per month - even when the money is tight. Now, it may be that your workforce is made up entirely of millennial employees (most modern companies are). If so (even if not), it is important to establish guidelines (and budget behind the scenes) before opening and expense account for them.
If they are traveling, establish a per diem costs. If they travel to various cities, breakdown percentages of the per diem for breakfast, lunch, and dinner. 25%, 25%, and 50% should do it. Costs for meals will also be different depending on the client. Let them splurge at the steakhouse if the potential business is worth it, but set strict (lower) limitations for trainings, conferences, seminars, etc.
Travel: Business class exists for a reason. But it is not a foregone conclusion. Be sure to allow for your teams to travel comfortably, but don’t budget more than you must. If you have an administrative staff, have them make a few phone calls to airlines about group business travel, rewards programs, and flight + hotel deals.
According to a blog post from American Express Travel, in 2016, group business travel costs will account for almost 36% of all travel expenditures. To reduce these costs, develop the right Request for Proposal (RFP) documents, consult Travel Management Companies (TMCs) to arrange everything, and set real expectations with all of your traveling employees right from the start.
Now that you’ve settled your food and travel budget, achieve the lowest spending you can on printer costs by heading into your local Cartridge World location, and speak to one of our associates!