An accounting event is any financial event that would impact the account balances of a company’s financial statements. Every time the company uses or receives cash, or adjusts an entry in its accounting records, an accounting event has occurred.
Predicting the financial outcome of an event
The event budget is a projection (forecast) of the income and expenditure that the event will incur based on plans made and information gathered.
Importance of financial control of an event
Once the Event Budget has been constructed, the Event Director has a means to exercise control of the event finances. Many organisations have run into severe financial difficulty and even bankruptcy as a result of staging events. The budget therefore enables the Event Director to make sound financial decisions about the choice of venue, and expenditure on a whole range of things including promotion, equipment and stafffing. The process of budgeting also enables the Event Director to calculate how much revenue is needed to stage the event in accordance with the planned level of expenditure.