When you realize that you're going to need to go on a business trip, even if it is initially nothing more than a day-trip out of town, it's best to create a budget and plan for possible expenses. Careful advance planning can prevent cost-creep, and help you make the most out of your trip.
Business Budgeting for Travel: What Is Cost Creep?
A business trip is like any other project, and should be planned out as such. In any project planning scenario, you must create a budget, and watch it carefully to avoid cost creep. Cost creep occurs when the costs associated with a project slowly increase over the course of the project. In the case of a business trip, you might find that you're spending a little more per meal than you intended, or a little more on hotel or taxi charges than you meant to. By the end of the trip, those small costs will add up to a considerable increase in spending. If you stick to your budget, however, your trip won't end up cutting into your regular operational budget any more than planned.
Saving Money with a Travel Budget
When you create a travel budget for your business trips, make sure that you're actually following it during the trip. A budgeting plan can only help you save money if you're limiting spending as set out in the plan. If there are multiple employees on the trip, have the most senior employee responsible for the company credit card, to prevent excess spending. Alternatively, you can pay for the major expenditures directly, such as airfare, and provide your employees with limited funds for a rental car, hotel and meals. Just send them travel expense report forms, and reimburse allowed expenditures when they return from the trip.
This business trip budget template from the Microsoft Template Gallery is compatible with Microsoft Excel 2003, as well as any later version of MS Excel. Just click to download, and you'll be prompted to read and accept the Microsoft Template Gallery Terms of Service. Once you've saved the template to your computer, open it using MS Excel, and customize it to reflect your company's information and the specifics of your business travel budget.
Business Budgets for a Better Trip
When you have a well-thought-out budget, it takes away the pressure of worrying about costs during your trip. Instead of worrying about money, you can focus on the purpose of the trip. Whether you're trying to convince an investor to fund a new location, or investigating a new product, your business travel will be more productive when the project has your undivided attention.
Sources:
- CNN Money: Making a Budget. Accessed March, 2011.
- Small Business Administration: Budgeting for the Small Business. Accessed March, 2011.
Victoria Nicks - Victoria Nicks has a Master's Degree in IT, and extensive hands-on experience with various types of hardware and software.
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