2018 Tax Deductions For Outside Salespeople

Being among the best salespeople in the game can have a ton of benefits. While that may be true, those benefits are about to drop by a whole lot. Starting at the beginning of 2018, the new tax plan has all but removed any deductibles that employees can take related to incurred business expenses. Let’s take a deeper look at what that means, how it affects you as a salesperson, and what you should do about it.

What's in the Bill

Here is the exact language pulled directly from The “TAX CUTS AND JOBS ACT” which is the title of the Trump Tax Bill. Listed below are all the expenses that are no longer deductible that could potentially affect you as a salesperson.

Under the provision, business expenses incurred by an employee are not deductible, other than expenses that are deductible in determining adjusted gross income

  • Purchase of travel, transportation, meals, entertainment, gifts, and local lodging related to the taxpayer’s work;
  • Business bad debt of an employee;
  • Business liability insurance premiums;
  • Passport fees for a business trip;
  • Tools and supplies used in the taxpayer’s work;
  • Work-related education.

Effective date.−The provision is effective for taxable years beginning after December 31, 2017.

How does this affect you

So what exactly does this mean? Well here’s the reality. From now on, until the provision expires in 2025, salespeople will no longer be able to deduct any of the following expenses from their taxes:

  • Gas
  • Plane Tickets
  • Food
  • Taking Clients Out
  • Passport fees
  • Training
  • Supplies
  • Laptops
  • Etc.

Obviously, these provisions are gonna have a pretty substantial impact on salespeople in the field. The average salesperson drives upwards of 500 miles per week and with gas costing an average of $3 per gallon, salespeople are shelling out an average of $60 per week. That may not seem like a lot but it adds up over a year to $3000 dollars just in gas costs. That’s not including the wear and tear on the vehicle that comes from the 25,000 miles they drive annually on average for work.

You can see how driving miles add up pretty quickly for an outside salesperson. All of the expenses with the job always seem to stack up at a staggering rate and for those who don’t work at companies who cover everything, which is often the case, salespeople used to lean on tax deductions. That is no longer an option. Outside salespeople will be left to shoulder these costs themselves and have to take all of these calculations into account.

What to do about it

It’s clear that as a salesperson, the less money you have to spend on job-related activities, the more money you’ll have in your pocket. At the same time, you don't want to be doing less work, meeting with clients and prospects less, or cutting down on your work ethic. All of that will lead to significant declines in performance and that's obviously no good. So what’s the answer?

The key is one word, efficiency. That’s doesn’t mean navigating between meetings to make sure you get there efficiently: it means optimizing your entire route, your entire day, and your entire approach. Efficiency means following up with prospects when you're supposed to rather than forgetting and having to add it to the end of the week. It means, knowing the area so you can check in on nearby clients while you’re there without having to make another trip out specifically for them.

It doesn’t mean sitting in your car after every single meeting to log check-ins, burning gas the entire time. You have to because much more conscious about your time, energy, and money while you're out in the field.

Thankfully, there’s Map My Customers.

Map My Customers is the ultimate tool and sales efficiency and can save you time and money when you’re out in the field. As we saw earlier, gas + wear and tear = the biggest expense for an average salesperson. So it logically would follow that if you could minimize driving time while still maintaining or even increasing your daily sales calls, you would stand to gain in the long-run.

Map My Customers' powerful Route Optimization tool, powered by Google, gives you the most efficient and effective way through your day, while also providing advanced analytics to cut windshield time and boost client facetime. Increasing your driving efficiency while decreasing your mileage by an average of 30% can have a huge impact on your bottom line.

Another big gas guzzler: wasted trips. Say you drive out 30 minutes to visit with a particular client for your scheduled meeting but you arrive only to find that they’re sick or they cancel the meeting. Well now you’ve burned through a gallon of gas, with no meetings scheduled during prime selling hours, and you’re just burning daylight.

With MMC’s Nearby tool, you can search from your exact location within a particular radius for all nearby clients. This allows you to fill your empty calendar, save that lost gas and time, and maybe close another deal on that trip. Cut down on wasted trips and wasted opportunities by using Map My Customers’ powerful Nearby tool.

Stop me if you’ve heard this one before. You finish up a meeting with a client, you walk out to your car, and, before you take off, you sit for a couple minutes to log the check-in and some follow up notes. Now its either too hot or too cold so you cut the car on for a couple minutes while you do this and then you take off to your next meeting. Now those 2 minutes of idle sitting may not seem like much, but that gas and that time can add up over a few weeks.

Map My Customers can kill 2 birds with 1 app! The newest feature coming out in MMC 4.0 is a robust Auto Check-ins tool. Your MMC will automagically log check-ins for you, with accurate time stamps for entry and exit and will attach it to the right account. This has numerous benefits. First, you have peace of mind that every check-in you make will be logged accurately, ensuring data accuracy back to your MMC account and into your CRM. Second, if cuts down on work for you as a rep in the field which saves you time and money in the long run. And lastly, you’ll never have to sit idle in the parking lot to log a check in again.

So it's clear now that, due to the recent tax bill, salespeople are going to suffer a bit when it comes to work-related deductions. We’ve shown that the only real workaround is to try your best to cut down on these work-related costs while not sacrificing you clients or which leads us back to one keyword: efficiency. Well here at MMC, efficiency is the name of the game. Our goal throughout our company is to provide a suite of effective tools that will cut costs, save time, and boost facetime with clients. If you’re looking for a way to boost sales, welcome to Map My Customers.

Want to learn how Map My Customers can help you do this? You can watch a video demo, attend an upcoming webinar, or book a live 1-on-1 demo here, or jump straight into a free trial to explore it yourself.