Event planning and management is still growing and evolving as an industry. Research and Market’s report on the global events management market projects that it will reach $1.76 trillion by 2029 from a value of $936.14 billion in 2023. These figures aren’t surprising thanks to increased demand for in-person events in recent months as well as a rise in hybrid setups that incorporate both physical and virtual spaces. However, with more people seeking events management services to help organize these gatherings, it’s more important than ever for event planners and managers to pay attention to their finances.
Account hierarchy is an excellent way for event managers to manage finances and improve the overall event management process. It ensures that every dollar is accounted for and used wisely by the right professionals and teams.
What is account hierarchy?
An account hierarchy is a way of organizing accounts in a system and is typically used in businesses or organizations to show relationships between them. Softrax’s definition of account hierarchy notes that this structure aims to ease financial reporting, analysis, and management. When financial data is organized in a logical and consistent manner, it’s easier for event management teams to understand their financial status for better budget creation and decision-making.
Organizing funds during the event planning process
Account hierarchies can look different depending on the organization and its needs. However, they typically include a chart of accounts (COA). A COA is an index of every account in an accounting system and can include account categories like assets, liabilities, equity, revenue, and expenses. As an events management business, you can also structure your account hierarchy based on projects or clients to track each event’s financial status. This can help you keep track of the budget of different events to ensure finances are flowing correctly and being used efficiently.
When you know how much money is allocated to certain events and projects, and how the finances are utilized for each one, you can easily keep track of each one’s financial status and avoid overages or misusing funds. The improved organization makes managing event planning easier and ensures you stay within budget, even when managing multiple events at once.
Risk management
Events are often unpredictable (even with thorough planning), and these unexpected changes can affect your budget and finances. Insights from Forbes note that risk management ensures that the time and resources spent on the event are protected and still used efficiently despite new challenges.
The structure that an account hierarchy brings can help event management teams assess the financial status of the event and delegate tasks to responsible departments or teams for efficient decision-making. It can help you determine how to utilize funds to cover any emergency situations that may arise. With an account hierarchy, event managers can easily see how money is being handled to mitigate risks, removing the added stress that comes with the unpredictability of events.
Streamlined productivity
Disorganization can easily throw your events management team into chaos. When money is on the line, this can lead to huge business impacts and can affect the success of your event. Organization and productivity are paramount for event management, and an account hierarchy can add more structure.
A clear hierarchy outlines which managers or teams have the authority or access to carry out certain financial decisions, saving time and preventing the misuse of funds. It also makes it easier to assign tasks or responsibilities to teams in charge of specific accounts. This prevents miscommunications and allows teams to know what they’re in charge of, streamlining decision-making and financial reporting to enhance productivity.
This type of organization and task assignment is easily completed using corporate meeting planning solutions. Event planning software streamlines productivity and helps lower costs. Attendease empowers your events team with automation, organization, and easy communication tools that will save you time and cost, while improving efficiency.
Article contributed by Brianne Watson exclusively for eventupplanner.com