To stay competitive in the face of rising business costs, it is imperative for small and medium enterprises (SMEs) in Singapore to manage expenditures efficiently. One of the basic expenses with the potential to overburden your finances is travel. As such, managing travel expenses is a significant step in managing overheads within your company.
With this in mind, Singapore Company Registration specialist Rikvin outlines five helpful tips to keep travel costs to a minimum. Whether you’re a startup, an established business, or an entrepreneur seeking to set up a Singapore company, these basic tips may ultimately prove beneficial.
Planning Will Work Wonders
An insufficiently planned travel itinerary often leads to unwarranted expenses. If your employees are traveling, plan the trip well in advance. Do a little research and select transport, hotel, and meal options that fit your budget. A little pre-planning can lead you to the best and most cost-effective deals available.
Get Your Employees on Board
To manage your travel budget, you need to ensure that your employees are on board with cost-saving measures. While it can be tricky to compel employees to follow travel policies, you can start by being honest about your company’s financial status. Most employees will understand if you explain carefully why you need to conserve your finances.
Be Your Own Travel Agent
In some cases, travel agents can help you save money because they have access to discounts and packages that may not be available to consumers. However, if you have the time and resources to plan the trip accordingly, you may be able to find more budget-friendly deals. On the other hand, devoting office hours to trip management can also incur additional expenses, so weigh each scenario carefully and decide if partnering with a travel agent will, in due course, prove less costly.
Determine Tax-Saving Opportunities
While traveling, take advantage of various Singapore tax-saving opportunities. Sit down with your accountant to determine specific travel-related tax rules, and identify which expenses can or can’t be written off. In addition, remember to save all receipts to document every expense come annual returns filing time. Figure if the trade fair you just participated in or the recent investment study trip is eligible for the DTD (Double Tax Deduction for Internationalisation programme).
Avoid Unnecessary Travel
Unless absolutely necessary, avoid spending for business travel. Instead, take advantage of modern technology to bridge the geographical distance between you and your clients, partners, suppliers or stakeholders. If possible, opt for video conferencing, web meetings, webinars and a number of other technologies to conduct your business. Singapore offers an extensive Information and Communication Technology (ICT) infrastructure to help you avoid excessive travel costs.
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