The document discusses the importance of budgeting for event planning and controlling costs, noting that an effective budgeting process involves planning costs for various categories like labor, sales, production, and expenses based on forecasts, then monitoring actual spending against the budget and making adjustments where needed to stay within budget. The budget establishes financial goals and identifies the actions needed to meet them, while also motivating managers and providing a benchmark for evaluating performance.

1. Aireen Y. Clores

2. Meeting the Budget: Creatively
controlling event costs.
Aireen Y. Clores

3.  Controlling is monitoring the performance
of systems and resources.
 Control is a management function which
whether what is supposed to happen is
happening or is going to happen.
Aireen Y. Clores

4. 1. Plan what you intend to do
2. Measure what has been done
3. Compare achievements with the
blueprint
4. Take action to correct anything that is
not as it should be.
Aireen Y. Clores

5. COST & CONTROL COST CONTROL
 Control is the total  Any action taken
spent to deliver the within the
goods management cycle
 Control which enhances the
1. Power to direct or likelihood that
determine the established goals and
events. objectives will be
2. Verify by achieved.
comparing to a
standard.

6. BASIS OF CONTROL: BASIS OF CONTROL:
 Recognize possible  The event manager
deviations from the must also consider the
baseline and to trade-off between cost,
respond in an time and quality.
effective way.  The event
management must
 The event manager
realized the
must also consider importance of keeping
the trade-off between to the budget, and
cost, time and must always evaluate
quality. the often competing
aims of creativity and
cost.

7.  Bookkeeping is the record keeping aspect
of accounting. Each financial event or
transaction has to be entered.
 The transactions entered during the
bookkeeping process usually fit into one of
the six following classifications.

8.  Customers – who buy products and services sold by
the business
 Employees – who are paid wages and provided
benefits
 Vendors – who sell services, equipment and
supplies to the business
 Government agencies – who collect taxes from the
business
 Sources of equity capital – investors or owners who
put money in and take it out of the business
 Sources of debt capital – banks and lending
institutions

9.  There are two standard reports which are
the main sources of business financial
information:
 the balance sheet
 the profit and loss statement

10. 1. Purpose is to show what a company owns and
owes on a specific date
3. Provides this information by laying out the value of
the assets and the liabilities of the business

11.  The assets of a company are anything that
the business owns. (cash on hand, office
equipment, vehicles, tools, real estate,
buildings)
 Accounts receivable is money which is
owed to a business.
 The liabilities of a business are anything
the business owes to others.

12. SERVICE INCOME SALES INCOME
 With service income  With sales income,
, the profit can be inventory costs also
determined simply by must be taken into
deducting expenses consideration. This
associated with inventory cost is
performing the referred to as the
service. cost of goods sold.
 Service income is  sales income is
derived from derived from
performing a selling a product
service while of some type.

13.  Budgets provide the baseline of expected
performance against which manager’s
measure actual performance
 A budget is much more than slap-dashing together
a few figures.
 A budget is an integrated financial plan put down on
paper, or entered in computer spreadsheets.
 Planning is the key characteristic of budgeting.

14.  The budget is arguably the most important
element of the event planning process.
 A budget is simply a statement of projected
spending that is compiled to act as a guide and
yardstick against actual costs.
 A good budget will therefore display both
projected and actual expenses as well as
highlight any variance between the two, along
with a full description to account for these
differences.

15. Budget
Planning

16. The Budgeting
Process
Depending on the size of
your organization, the
budgeting process might
be quite simple or
alternatively quite
complex. Regardless of the
size of the organization,
you can budget almost
anything in it.

17.  Labor budget: A labor  Sales budget: The
budget is made up of sales budget is an
the number and name estimate of the total
of all the various number of products or
positions in a services that will be
company, along with sold in a given period.
the salary or wages Total revenues are
budgeted for each determined by
position. multiplying the
number of units by
the price per unit.

18.  Production Budget :  Expense budget:
 The production budget  Expense budgets contain
takes the sales budget and all the different expenses
its estimate of quantities that a department may
of units to be sold and incur during the normal
translates these figures course of operations. You
into the cost of labor, budget travel, training,
materials and other office supplied and more
expenses required to as expenses.
produce them.

19.  Capital budget: this is the manager’s plan to
acquire fixed assets such as furniture, computers,
and office space, to support the operations of a
business.
 One Year at a Time: a company generally
prepares budgets one year at a time. While a
company may do long-term strategic planning to
develop five- year strategies, trying to forecast
further down the road than 12 months for
budgeting purposes is very iffy.

20.  Developing a detailed  Budgeting also
financial plan for the encourages a business
period coming up to articulate its vision,
helps establish strategy and goals.
financial objectives  Budgeting imposes
and identifies exactly discipline and
what must be done to deadlines on the
meet these objectives. planning process.

21.  Budgets can serve as  Budgeting motivates
benchmarks against managers and
which to measure employees by
actual performance providing useful
for a business. yardsticks for
 Budgeting forces evaluating
managers to do better performance and for
forecasting setting compensation
when goals are
achieved.

22.  Meet with staff
Closely review your budgeting documents and instructions
 Gather data
 Apply your judgment
 Run the numbers
 Recheck results and if
necessary, run the budget again