BUDGETS
Budgets are essential planning and management documents. The running of your event, your funding applications, the fee you pay your performers will all have an affect on your budget and account keeping systems.

If your organisation is constituted and registered (such as a company limited by guarantee or a charity) you will most likely have to provide accurate annual accounts by law, so it is a good idea to allocate a treasurer who will manage the finances of your organisation by establishing a simple, but accurate budgeting and accounting procedure.

Even if you are not required to produce accounts by law, it is very good practice to do so on a yearly basis. This will enable your committee or board to review your financial situation, plan for the future and also provide evidence to your funders that you are operating in a responsible, professional way, and that you can be accountable for any money they grant you.

As well as being required by law in some circumstances, most funding applications will require you to present a budget for your event, and it is the most effective way to plan and manage what you do.

Sample budget for carnivals from CarnivalArts.org website.

Basic guide to preparing an Income & Expenditure Budget for carnivals.

Your budget should divide your expenditure into sections. Depending on the size or nature of your event, these might include:

• Artistic expenses
• Staff/ Volunteer fees/expenses
• Marketing costs (including postage, websites and design)
• Site costs
• Equipment hire or purchase
• Technical support, installation fees, set-ups
• Insurance
• Professional fees (e.g. auditors or accountants)
• Evaluation costs
• License fees (entertainment, or copyright clearance)
• Administration costs (telephone, stationary, postage)
• Contingency (for unforeseen costs - it is recommended that this is at least 5%)

Similarly, your income should be broken down:

• Earned income (like ticket or merchandise sales or workshop fees or money raised through fundraising events)
• Grants from public funding bodies, charities, trusts or foundations
• Sponsorship either as support in kind (like using someone's equipment or time) or cash
• In-kind support from other event partners like venues, or caterers.
• Commission from the sale of artworks (if applicable)

The Dumfries and Galloway Council's 'Event Organisers Toolkit' has some sample financial planners. 

You will need to ensure that your income covers your expenditure, and you will sometimes need to change your plans if your income is less, or your expenditure goes up. A budget can be prepared on a Microsoft Excel worksheet and will help to show you where you are missing funds, and also what your actual expenditure was after your event.

It is important to use the budget you planned before the event as a guide to see how the actual event compared to your predictions, and to continue to revisit the budget so that changes in costs can be taken into consideration and that your spending is monitored.

See Sample Budget in the Resources section, by Tourism North East.

The Voluntary Arts Network have produced a glossary of accounting and financial terms - Click here to view.