Financial Management is fundamental to the success of any event. At the beginning of a financial year, it’s imperative that you plan ahead, keep on top of your budget, and be realistic about your expenditure. It’s a great idea to put control systems in place so that the budget is kept on target. Type everything up in excel and ensure that it is done correctly.
While beginning a budgeting plan, ensure that you implement a little flexibility and identify things that could call for plan b, ensure that you have a contingency fund. If you are presenting your plan for sponsorship you won’t want to approach them before you understand the outline of your budget. Ensure that the financial viability of the event is perfect. We recommend that you build an appropriate contingency into your budget.
Be realistic, don’t set down plans that you aren’t likely to follow through with, if you have a plan that is unlikely to materialise within the year, don’t add it to the budget, a mistake like that could set your funding back and show a lack of professionalism. Each and every item that you plan to use in your event should be documented as expenditure and all income items should be recorded in the event budget too.
Whether your event is big or small, try to create simplicity within your budget report. If it is a small event, try to make the budget simple and don’t document unnecessary contingency plans, and if the event is going to be large and extensive, it’s helpful to have a budget summery in order to break down the information. Ensure that you state whether your budget is inclusive of VAT or not. If your budget is presented as NET (does not include VAT) ensure that you take that into consideration, and if you are VAT registered and able to reclaim the VAT keep a NET event budget. If you cannot claim your VAT back, it is best to create a budget report with the Gross values (includes VAT).
While your event and the ideas may all be decided, now is the time to evaluate whether it is financially viable or not, you will need to document all of the ways in which you could make money from your event. There are 2 main ways, they break down into many subsections however an event usually falls into one of 2 categories: