New Tax Laws May Impact Corporate Travel & Expense Policies For Sales Reps
New Tax Laws Takes Away Deduction for Entertainment..
Good friend and consulting CFO, Rolf Neuweiler of a2zCFO is our guest blogger this month with a great post on the new tax law and one of our favorite benefits of being an outside sales rep, Customer Entertainment. From Rolf’s post we can say goodbye to the practices of the past, where luxury boxes at sporting events were the norm, golf, Superbowls and all the other fun stuff you get to enjoy with customers is no longer tax deductible.
Since we live in a competitive sales environment it is unlikely customer entertainment will disappear, but expect many companies to tighten the rules and justification for such events. The good news is you can still enjoy that special relationship-building dinner with a client and the deductibility is still 50%. The other good news is many corporations will more than make up for the loss of this write-off with the new and improved corporate tax rates.
It is still sound business practice to constantly review the ROI on your big budget marketing spends. Are they really going to buy more from you this year because you had box seats at the Superbowl? Too often the case is many of the big ticket spends by corporations end up being just nice perks for the management team with often more employees than customers at some of the tony venues. I’m not saying it is not fun, sure it is. As the VP of Sales and sometimes VP of Sales & Marketing, I would honestly prefer to invest where it benefits myself and my team to hit the often lofty sales goals. Hitting quota is far more rewarding than the temporary rush we get from being on the sidelines of a big game…