Making money is not the only goal when planning an event but having money is one of the most important assets to have while creating and executing your event. Having an accurate event budget to manage the money coming in and going out from a project can be tricky to maintain. To support your project efforts, this article will explore why creating and maintaining accurate event budgets are so important and how to optimize your budget throughout the life of the event.

Accurate is Important

Having as accurate of a budget as possible for any project is important but when considering an event budget, it is even more crucial. A budget should be one of the first steps to do when you start planning an event. The budget you create will give you many insights but can also show any potential blockers throughout the planning process.

Without a clear picture of the capital that is both incoming and outgoing from the event, there are a number of issues that can arise. Some of the issues that come without an accurate budget are overestimating costs, underestimating revenue, risking profit loss at the end of the event, and simply not having an idea of the money flowing through your event.

There are many positive aspects which result from creating and maintaining an accurate budget before, during, and after your event. Positive things that result from accurate budget keeping include clear expectations and negotiating power. Part of accurate budgeting is also forecasting your budget as you start planning an event. By taking this step, you and your team can obtain a clear view at what sales need to be made to cover costs and how much you can spend on different expenses. Knowing what you can spend also gives you some negotiating power in your search for vendors and as you obtain quotes from a variety of vendors. 

Optimize Your Budget

Let’s dive in about how to make the most of your budget and how to easily keep it up to date with the most accurate information on hand. As you start creating your event budget, it is most important to forecast what costs you may have. Start by creating a range when looking at costs and live within this cost range while planning the event. When creating a cost range, you can also calculate or forecast how much revenue must be made to cover the entire range of costs. By doing so this sets up a goal for the event, in the end it will help you decide whether the event was successful or where improvements can be made for the future.

As you begin noting down what costs your event will have, include any and every cost that might occur before, during, or after the event. This is important as it provides stakeholders a well-rounded picture of what to expect. Some important costs to include outside of general catering, venue, A/V, travel, and accommodation are speaker gifts, pre or post conference parties/cocktail hours, last minute store run for supplies used at the event, etc. Many things can arise as a live event takes place and it is crucial that when additional things are paid for by team members that proof of payment is saved and well documented within the budget. By doing so your expense list may seem long but when all is said and done your budget is precise.

As your event is in the works, it is also important to frequently check in on your budget document. Update the document with actual numbers as you go along, as you receive invoices for costs incurred and revenue received, or designate a specific day to make updates in bulk. Just keeping your budget up-to-date “frequently” is not always enough. Create a schedule or specify when or at which cadence to keep the budget up to date. For example, I typically find myself bulk updating my budgets weekly on Fridays. This helps me to close out the week in terms of what was spent and received as well as start the following week with updated and accurate information. When making my numeric updates, I also keep notes as I check in on the budget. I even keep a folder (virtual or physical) with all of the invoices and receipts to assist with double checking what has been included within the budget. You may find this all extremely helpful because it is so easy to forget things as time goes along. More specifically, by note taking, the notes within the budget more or less become a log of “meeting minutes” of what I did and why. At the end of the event, it greatly helps to avoid any questions or confusion with team members and stakeholders. 

Last but not least, as we speak of documentation, if it is not clear already: Document incoming revenue as persistently as you document outgoing cash. Typical forms of incoming revenue include sponsorship payments, ticket sales, or even partnerships with other organizations. By keeping incoming cash as up-to-date as outgoing cash you have a more well-rounded picture of the event’s potential success or failure. This will help make any decisions if you need to pivot your planning efforts or, in the worst-case scenario, cancel your event. Not to mention that by knowing exactly what you have in revenue you can greatly avoid overspending by cutting back when and where it is needed.

The Grand Finale

For the seasoned event or project manager, this information is second nature. It takes time, discipline, practice, and persistence to keep a budget relevant and accurate. At the end of the day, you can look to accurate budgeting as a chore or even a necessary evil. Without it you are risking losses at the end of your event, not to mention the slew of other issues that go along with this result. With it you set yourself up for success including happy stakeholders, happy vendors, and a relaxed team at the end of the event.

If you would like to see or use the template that inspired this post, reach out on social media or send an email to info@allyalexandrou.com!

Happy budgeting!