An event budget is a comprehensive forecast plan of the financial aspects of the event planning process. Efficient budgeting helps regulate revenue and expenses, which is the key to successful project management for event planners.
There are many factors to consider when creating a budget for an event, such as the cost of venue rentals, catering, staff, marketing, and event supplies. It is daunting and time consuming to create custom budgets from scratch using Excel spreadsheets, but you can manage your budget easily with our financial management suite.
Combining the financial tools of accounting software, along with other financial tools, with everything you need to manage the logistics of an in-person or virtual event, EventPro has created a versatile, all-in-one event budget manager software that provides everything you need to forecast expenses, track actual costs and more!
This guide will provide an overview of how to make an event budget, and how the best budgeting software can make a world of difference.
An event budget can be described as a detailed approximation of revenue and costs or a prediction of how much money the event will cost and how much revenue it will generate. Whatever event you are planning, the event's financial accounts must wind up in the black. To make sure your business finances make sense, the prudence concept states that it is better to underestimate your profits and overestimate your expenses. It is also better to leave room for unpredictable costs and cash flow curveballs that may arise during the event.
It is important to note that not all events are similar, especially now that some events are being held in person and others are being held virtually or a combination of both (hybrid). This means that each event budget will have different features, and it's up to the event planner to determine the best way to plan the event and develop their budget.
When coming up with an event budget, it is good to see the funds you will potentially be working with to estimate your expenses. If you are lucky enough, there may be some seed money to work with. For events like academic symposia, you might be able to get money from donors who want to help.
Other income sources for the event may come from sponsors, attendees, and exhibitors. Selling booths to exhibitors, packages from sponsors, and tickets to attendees can help to generate income that can cater to the event's expenses.
Will your company need to make accommodation plans for guests or keynote speakers at the event? If so, what are the accommodation expenses? Ensure you incorporate this expense tracking in your financial planning budget to avoid underestimating your event's costs.
Depending on the size and type of event you are planning, estimate food and beverage costs. Beverage and food are not necessary as an event does not necessarily need to provide complementary consumables. However, providing drinks and food will make for a better experience and ensure your attendees leave happy.
To avoid any issues arising from a poorly planned event, ensure you include staff pay when making your event budget. Approximate how many staff members will be needed to organize the event, the amount of time that will be spent organizing, and the appropriate compensation required.
This is the money spent on securing the venue. Manage expenses by ensuring you leave room for hidden costs like lighting, heating, and security costs. A good business budgeting software will also furnish you with important financial data to see hidden costs that you could be missing.
Will you need insurance, special contracts, or permits to host the event? Each of these things falls under the logistics aspect of the budget. Estimating the logistics costs will depend on your event's venue.
Marketing costs often account for a considerable portion of the event budget, because income from entrance fees and other charges is ultimately the major determiner of business success for events. Consider the financial performance of marketing efforts you have used in the past to gauge which verticals will provide the best return.
Come up with the best event budget by choosing budgeting software that allows you to:
Whether you are a novice or an experienced event planner, developing your events budget is never easy. The budgeting process can be overwhelming, and you must make difficult decisions to create a successful budget. Some of the things you should consider while developing your budget include:
Developing an event budget plan can be challenging, but it is crucial to the success of any event. Overspending on an event can be detrimental to the event planner and the company hosting the event, leading to heavy losses for the entire business. To avoid this, we have the best way to manage all types of events. Instead of trying to juggle multiple balls and failing, our budgeting software can help you plan all future events without too much hassle.
Contact EventPro today to request a demo of our budgeting software.