How does budgeting software for event agencies increase profit?
Time to read: 3-4 minutes
It’s a new year. Around this time, businesses will start to consider revamping their processes. During audits, event agencies may realise they lost money due to inaccurate budgeting, inefficient control over spending and tricky reconciliation conversations with clients.
Budgeting software for event agencies doesn’t only improve internal company processes and streamline workflow, it can also be used to increase profit margins in a measurable way. Having a tactical system in place for upselling and cost control provides event companies the perfect platform from which to boost profit successfully. Here’s how budgeting software can increase profit.
Budgeting software that is designed for event agencies tracks costs against budgeted line items, when a line item goes over budget, adjustments can be made quickly and accordingly before money is spent and lost.
With budgeting software, event agencies can secure the purchasing process and prevent accidental overspend. Whether you’re hiring freelancers or permanent employees, budgeting software allows you to place purchasing limits. Notifications ensure management stay in control of all expenditure, while the approval process give event planners and creative project managers the freedom they need. The more control over spend, the higher the profit at the end of your event.
Optimise decision making
Accurate reporting gives event agency owners and senior members of the team the perfect platform from which to make profit boosting decisions. For example, understanding which freelancers are creating value and which aren’t positions you to hire effectively based on accurate data. Budgeting software also prompts informed contractual negotiations with suppliers by providing in depth procurement analysis. These are only two examples; when management have a clear view of what’s going on in their company, they’re better situated to make impactful decisions.
Clear understanding and presentation of optional additions
When managing events, offering the client optional extras as suggestions to enhance their event can be a great way of boosting revenue beyond the originally agreed scope. Budgeting software provides the framework from which to promote revenue enhancing ideas in a convincing, strategic way.
Effective reconciliation procedures
Along with line by line reconciliation, budgeting software designed for event agencies provides clear contractual documents for ongoing reconciliation. A Project Acceptance Form is generated when a client accepts the budget which creates a line in the sand allowing comparison between the original agreement and any changes from hereon.
It’s inevitable the scope will change even though the budget has been agreed to and signed off. This is where Project Change Notices come in. They are generated to provide the client with budget changes. For example, if a client required additional graphics or beverages, a contractual change notice can be generated automatically which includes the new cost to the client as well the overall cost.
When final reconciliation comes around, any confusion is easily managed by taking the client through the cost journey, facilitated with the Client Estimate Comparison report. This flexible document automatically displays all contributing changes by highlighting them and illustrates to the client how the event budget has evolved over time.
Events can become hectic and providing the client with their requirements often takes precedence over long hours of managing the budget. Yet, when an account manager can’t explain why there’s an increase in cost during reconciliation, it can be the agency that has to absorb any additions. With Project Acceptance Forms and Project Change Notices, event professionals stay aware and in control of the budget, resulting in a higher profit and a less frustrated client at the end of the event.
Start your year with the best resources to boost your profit margins by booking a demo.