BEM – Financial management and the budget . Lim Sei Kee @ cK. Q. Define Income and Expenditure. What are the examples of income and expenditure of events management? Is it important to have a budget? Why or why not?. Introduction.
Lim SeiKee @ cK
Careful assessment of potential income, expenditure and profit, surplus or break-even has to be done depending on the type of event.
Example: if the wedding was planned to cost $5,000 but $10,000 was spent, someone had to find the money.
One key to the effective financial management of events is the appointment of someone responsible for it. (Finance manager / controller / officer)
Contribution price is the reason why you pay less at an off-peak period when you visit a leisure center or a theme park.
For example, for X people attend, the cost of hiring a tent is $1,450 – fixed cost.
both a forecast of what is intended to happen and a record of what is happening
(or, after the event, of what had happened),
acts as a means of comparing the forecast with the reality and sets targets that the organizers can strive to achieve.
because it should help to establish clear lines of responsibility about who can or cannot spend money.
The budget should also seek to ensure that the resources the organizer has are most economically or efficiently used, thus helping to keep costs under control or to ensure a profit or surplus is made.
Events management depends on the ability of managers and events organizers to solve problems, often very quickly.