Accounting in Events

Prepared by:

FRANCE MARIE ANN A. RAGUINI, MSHM

Instructor
ACCOUNTING is the
systematic recording, analysis and
reporting of financial transactions of
a business.
A. BUDGETING
 A Budget is the estimate of the
revenue and expenses. It provides
data on an event’s funding
requirements as well as a means to
monitor expenses.
Tasks in Budgeting
 4 Major Budget Items
1. Cost – refers to the expenses or how much it will take
to stage the event.
a. Fixed Cost – expenses unaffected by economies of scale
(eg. Venue Rental, Honorarium)
b. Variable Cost - expenses that varies

2. Revenue – refers to how much the event earns in gross

receipts.
3. Breakeven Point – is the minimum point where
revenue meets cost.
4. Cash Flow – is the schedule of cash inflow and cash
outflow
 How to Calculate Break-even?
 Break-even analysis - The break-even analysis lets you determine what you
need to sell, monthly or annually, to cover your costs of doing business—
your break-even point.
 Break-even Selling Price - is the practice of setting a price point at which a
business will earn zero profits on a sale.
 Fixed Expenses - Fixed expenses remain relatively the same and don’t
change based on production or sales volume. Examples: Administrative
Labor, Rentals
 Variable Expenses - Variable expenses are not consistent and change based
on the production output or volume.
 How to Calculate Break-even?
a. Determine all fixed cost in your budget
b. Determine all the variable cost in your budget
c. Use the Formula Below
BEP = Fixed Expenses
Sales price per unit – Variable cost per unit
 How to Calculate Break-even?
Example:
XYZ Restaurant is a specialty restaurant who plans to sell pepperoni pizza
for Php 199 pesos per box. The variable cost expenses in making 1 pizza cost
Php 85.00. The fixed cost expenses of the restaurant cost 5,650 a month.
a. How many pizzas do they have to sell to breakeven?
 Uses of Break Even Analysis
1. Prices: If your analysis shows that your current price is too low to enable
you to break even in your desired timeframe, then raise the item’s cost.
2. Materials: research on how you can maintain your desired level of quality
while lowering your costs.
3. Planning: Determine how much more you need to sell to cover new fixed
costs.
4. Goals: Can serve as a powerful motivation tool for you and your team.
 SAMPLE BUDGET PLAN
a. PROJECTED REVENUE
Ticket Sales 400x 50.00 20,000.00
Sponsorship 5,000.00
total 25,000.00
b. PROJECTED EXPENSES
Prizes 6,000.00
Reception (food and beverage) 4,000.00
Stage Décor 3,000.00
Tokens for Judges 2,000.00
Communication expense 1,000.00
Certificates 1,000.00
Printing (Tickets, programs, flyers, etc.)2,000.00
Tarpaulin 2,500.00
Miscellaneous 500.00
total 22,000.00
c. PROJECTED PROFIT 3,000.00
SAMPLE BUDGET PLAN
B. FUNDING EVENTS
Sources of income
 Sources of Funding
1. Local authority leisure department
2. Education authority 9. Professional institutes
3. Local or national sports council 10. Hoteliers
4. Local or national arts council 11. Heritage Agencies
5. Foundation for Sports and the arts 12. Local or national authorities
6. Local or national tourist authorities 13. Voluntary Bodies
7. Sponsorship agencies 14. The National Lottery
8. Business agencies
 Other Sources of Funding
1. Franchising 9. Catering
2. Ticketing 10.Advertising
3. Entry Fees 11.Licensing (logos, etc.)
4. Fundraising 12.Trade exhibitors
5. Donations 13.Participant Contributions
6. Programs 14.Sales Stall
7. Raffles 15.Bar
8. Souvenirs 16.Corporate Hospitality
 SPONSORSHIP

- Sponsorship is a mutually beneficial

business arrangement between sponsor
and sponsored to achieve the agreed
objectives.
 SPONSORSHIP
Tips on looking for an sponsorship
1. Use imagination and innovation
2. Put in the marketing effort
3. Clearly define the type of Market
4. Consider changing the nature of your activity
5. Access your sponsors through the Chamber of
Commerce or the Rotary Club
 SPONSORSHIP
Tips on looking for an sponsorship
6. Assess respective images
7. Approach unlikely targets
8. Do the necessary research
9. Check existing sponsors
10.Get media support
Sources of expenditures
Sources of expenditures
Sources of expenditures
Sources of expenditures
Sources of expenditures
 Activities
Activity 1: Make a list of possible sponsors for the event (Not less than ten) Below is
the format:

Name of company/ agency Address Contact person/ number

1.

Activity 2: Make a Budget Plan for the planed event

Activity 3: If Foods and Beverages are to be included in the event fee,
make a menu list and it’s costing.
Activity 3: Determine its Selling Price and the inclusions of the fee.

NOTE: Submit hard copy/ies.

 REFERENCES
 BOOK REFERENCES:
1.Cruz, Zenaida L.(2006). CONVENTION AND EVENT MANAGEMENT SECOND EDITION. National
Bookstore: Mandaluyong City
2.Cruz, Zenaida L.(2015). CONVENTION AND EVENT MANAGEMENT THIRD EDITION. National
Bookstore: Mandaluyong City
3.Romero, Eloisa A. (2009). EVENT MANAGEMENT HANDBOOK FIRST EDITION. Rex Bookstore Inc.:
Sampaloc, Manila
4.Allen, Judy (2009). EVENT PLANNING SECOND EDITION. John Wiley & Sons Canada, Ltd.: Canada
5.Bladen, Charles, et. al, (2012). EVENTS MANAGEMENT: AN INTRODUCTION. Routledge: New York, USA
6.IRFU Organization (2008). EVENT MANAGEMENT HANDBOOK for event organisers of larger events
(greater than 3,000 spectators). Eamon O’Boyle & Associates, Safety Consultants
7.Brown, Nancy ( 2011). HOSPITALITY AND EVENT MANAGEMENT
8.Wagen, Lynn Vander (2010). EVENTS MANAGEMENT 4TH EDITION
9.Wagen, Lynn Vander, et. al. (2012). EVENTS MANAGEMENT FOR TOURISM, CULTURAL, BUSINESS
AND SPORTING EVENTS
10.Polivika, Edward (1996). PROFESSIONAL MEETING MANAGEMENT