Other financial considerations
Financial operations and requirements are complicated and specialised, even though it may seem expensive, utilising the services of a finance professional can save time and money in the long run. The main areas to seek professional advice include:
Tax / annual accounts
The tax and annual reporting requirements depend largely upon the governance structure and set up of the event. Independent advice should be sought in relation to tax issues and financial filing requirements.
Procurement is the process of obtaining all of the goods and services required to stage an event. When undertaking procurement the event budget and cash flow must be kept firmly in mind. A clear procurement plan or strategy with accompanying policies and procedures needs to be put in place to ensure that the procurement for the event is managed in an effective way.
Procurement is ultimately about ensuring surety of supply and securing best possible value for money.
In relation to one-off events, it generally makes sense to hire all tangible non-consumable goods that are required to run the event, however in some instances it may be necessary to buy certain tangible assets. This may be due to the fact that highly specialised items are required which have to be purpose built, or that hiring an item for a long period of time may be more expensive than purchasing it.
Purchased assets need to be managed and a disposal programme needs to be put in place so that they can be quickly disposed of after the event (assuming that the event is not recurring).
Assets may be disposed of by:
- selling them
- distributing as part of a legacy programme
- gifting them
- dismantling and recycling the components.
The ideal way to dispose of an asset is to sell it and recoup some of the costs or to provide it as legacy, however the disposal method will depend upon the demand for the asset.
Organisers of recurring events will need to consider storage and security options for assets in between events.