Event contractors can help you to manage your event business. Through delegating the planning and setting up of the event, you will free up your time, allowing you to focus on other priorities within the business. You may also want to free up time by having Billetto handle the tickets for your event and create an online box office.
According to a financial capability survey, 39% of adults in the UK do not feel confident managing their money. But, when it comes to running your business, you must be in complete control of your finances.
Luckily, we have provided a guide to make sure the accounting and management of your independent contractors runs smoothly.
Create A Budget
When you hire an independent contractor for your events, you will need to give them direction on setting the event up.
Rather than letting the event contractor plan the event as you have instructed with no limit to what they spend, you will need to establish their budget.
This means you will have to learn how to set up a budget. The budget should include the venue, hiring staff, decor, and any other purchases or rentals that will be necessary.
Creating a budget allows you to manage your money better, and gives the event planner a clear goal for their spending.
Establish The Details Of Your Contractors’ Payment
Your contractors set their own hours in order to complete the task you have set for them.
In order to establish a clear and definitive understanding of the contractor’s rate and the date they will be paid, London Accountant Sylwia Kotarba explains that you should set up a written agreement in the form of a contract.
“This way, the contractor will know exactly when to expect a payment, and you will know exactly how much you owe them. This is a critical part of hiring a contractor, as you do not want to have any disputes down the line.”
Be Proactive With Your Bookkeeping
To oversee the management of your event contractors, you will need to keep a close eye on your finances.
It is worth setting up some accounting software or hiring an accountant to automate your bookkeeping process and have the figures presented in an easy-to-read summary. This will save you hours of poring over excel spreadsheets.
You will also need to keep records of your transactions for tax purposes, as having a detailed record that is organised well will make tax forms easier.
Make Use Of Event Sponsorship
Event sponsorship is when you get a company to sponsor your event in return for promotions during the event, such as product promotion.
The sponsor will put money towards the event, or they might provide a barter exchange, providing you with their product in exchange for exposure (for example, if a tequila company was sponsoring your event, they might provide free tequila for your guests).
You can reach out to sponsors with a sponsorship proposal, which details the nature of the event, the demographics of the guests, and how the sponsors will be included in the event. For more information, check out our guide on how to create a successful event sponsorship proposal.
Practice Financial Awareness
Never forget, this is your business, so it’s up to you to be aware of your finances. Some things you should be aware of include:
- Your profit margin
- Your budgets and expenses – including your insurance premiums
- How much your assets (equipment etc.) are worth
You should start by reading your financial statements each month, including your profit and loss statement, your balance sheet, and your cash flow statement. Your accountant or account management software will make this much more accessible.
State Your Expectations Clearly
When it comes to overseeing the work of independent event contractors, you must give them a clear understanding of your expectations for them. This way, you can avoid your event budget being misspent on items you cannot return.
Your money matters, and you can protect it by providing a detailed account of exactly how you would like the event to be set up.
You should make yourself available to your contractors for any questions they might have. Alternatively, you can give them another contact for these questions if you already have too many things to oversee.
Our list of accounting tips for managing your event contractors is designed to ensure the financials of your business are all under your provision and control.
If you manage your finances, come up with budgeting solutions, and identify areas where you can cut costs, you stand to increase your profits and have a clearer understanding of how to grow your business.