Like it or not, tax season is upon us. So, you're probably busy thinking about the ways in which the new tax law affects your business. One new rule we wanted to flag for you is the major change that could affect how many businesses handle client and prospect entertainment expenses.
In a recent article, MarketWatch highlights the way in which the Tax Cuts and Jobs Act will affect this area of business expense: "Starting in 2018, the costs of entertainment expenses will no longer be deductible. Under the old tax code, 50% of the entertainment expenses were deductible." Though, according to Reuters, that 50% will still apply to meals provided by an in-house cafeteria or on the employer's premises.
Where does that leave you? As Forbes points out: "Businesses that use the entertainment deduction extensively will have to gauge the effects on their bottom lines." The good news is that these changes don't take effect until 2018 – only applying to expenses incurred or paid after December 31, 2017. So, you have some time to address your processes to account for the change.
While we are not able to give you tax advice, there is one way in which we can help smooth the transition. With our tools, you can alleviate the tedious task of manually tracking those entertainment expenses by automating your expense reporting and tracking processes . Plus, you'll get near real-time visibility into your entertainment budget so that you can make adjustments before it has all been spent. Learn more about what Concur Expense can do for you.