While I don’t travel for business very often (thankfully), I did have the pleasure of traveling to Chicago last weekend for a conference and reunion of the International Association of Integrative Coaches. It was a fine time to re-connect with other coaches like myself who have been trained by bestselling author Debbie Ford to deliver her work to clients one on one. I am honored to be part of such an amazing and inspiring community. On this trip I realized just how easy it is to miss the small stuff, keeping track of certain business expenses, when you’re swept up in the excitement of an event.

If you own your own business, many of the routine things you spend money on during such a trip are tax deductible. However, your ability to grab the tax benefits associated with business travel is only as good as your ability to be organized, keep track of, and record these expenses. While I am no tax accountant, I do know that the little things add up and if you don’t capture them in your records when they are happening (or at least once a day), it is highly unlikely you’re going to remember the $3 tip you gave the bellhop by the time you fly halfway across the country, settle in back home, and get around to doing your bookkeeping a week later. Not to mention, the pesky entertainment expenses are even more likely to be lost in the shuffle because you’re so busy having fun, networking, and connecting with your colleagues and good friends to even think about what you’ve spent money on.

The key to keeping track is to set up a system for yourself that is foolproof (granted, I’m not quite there yet, but getting better!). You need a routine that is easy to follow on the road that you can update a few times a day and then forget about (until you get back and do your books of course). Here are a few things I have found work well for me personally:

  • Use the business credit card as much as possible. Not only does it make things easy, but it also forces me to remember to take the receipt with me plus I have a backup record when the credit card bill comes.
  • Create a space in my notebook, PC, or Palm where I will track expenses for each day. I set it up beforehand with blank spaces for the most common expenses (breakfast, lunch, dinner, etc.). Don’t forget to add in the small things that add up like gratuities and trips to buy a bottle of water for the next seminar session.
  • Have an envelope or folder handy to put all my receipts in. If you’re a real road warrior, consider something like NeatReceipts Scanalizer to take the paper out of paper receipts (handy for scanning in business cards as well).
  • Keep business related cash separate. Anyone who has tried to reconcile their petty cash without a clue can tell you, it’s easier to reconcile later if you keep things separate. (Perhaps it is just the old professional auditor in me, but it really is easier!).
  • Remember to ask for receipts when you can. I, for one, tend to forget receipts when I pay cash. In general you can get by without a receipt (except for lodging) if it is under $75, but to be sure, consult your accountant and review the IRS regulations.

Just like when you’re following a savings plan, the small things add up. Set up a system that works for you when you’re traveling so you can make sure to make the most of the tax deductions available to you.