Financial Management Flashcards
Hosted Buyer
program offers comp travel, accommodation and registration for prequalified buyers to attend an exhibit
Secure Digital Certificate
Payment card industry compliance
Application Services Providers (ASP)
Online registration companies that offer registration forms, secure sites, cc transaction and auto confirmations
Budgeting
process of planning and preparing estimated revenue and expenses in order to achieve the financial goal
Sponsor Prospectus
a sponsor benefit package - contains info to assist a prospective sponsor in making a decision
Items included in a sponsor prospectus
- overview/history of event
- ROI measures
- Letter for proposal
- Audience demographics
- Benefits
- Terms and conditions
Master Account
agreement for credit between the host organization and revenue to be paid directly by the host organization
Exhibitor Prospectus
outline of all benefits for the exhibitors and provide important information about the show, attendees & policies
Forecast
ability to use historical data to estimate the future number
Income Statement
statement of revenues and expenses
AKA profit/loss statement
Cash Flow Statement
distinct from the income statement and balance sheet because it DOESN’T include amount of future incoming and outgoing cash that has been recorded on credit
3 Methods Determining Cash Flow Statement
- Core Operations
- Investing
- Financing
Balance Sheet
statement that indicates overall financial status by subtracting expenses from income
provides bottom line
Revenue
total income generated from selling products/services over time
Accrual Accounting
system counts income and expenses when they are earned or incurred
Cash Accounting
system counts income and expenses as they are actually received and paid
7 Common Mistakes
- allow contingencies of the unexpected
- include tax and service charge
- include labor costs
- communicate clear policies to speakers/staff
- review master account daily
- rely on history for meal guarantees
- know the value of your business
Program-Based Budgeting
allocates portions of indirect costs to the event budget
Zero-Based Budgeting
when there is no financial history and the budget is created using estimates of anticipated income and expenses
Fixed Costs
costs incurred regardless of the number of attendees at event
ie. room rental, insurance, audio visual and signage
Variable Costs
costs that vary according to the number of attendees
ie. food and beverages and printed materials
Deficit
Expenses < Revenue
ie. Host organization provides funding to meeting
Incremental Budgeting
Review past history, preferably last 3 years and compare projected and actual figures from previous budgets
Subvention
Common industry practice in the international meetings market. Used where competition is high to attract large congress or events
ie. olympics
