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    How To Do Well The Financial Management Of Clothing Exhibition

    2012/10/4 11:52:00 51

    Do A Good JobClothing ExhibitionFinancial Management

     

    First, formulate financial targets.


    Financial objectives are

    financial management

    Premise.

    The financial objectives must be consistent with the overall objectives of the organizers and Convention and exhibition projects.

    If the core financial objective of clothing exhibition is to make profits, it is necessary and important to make financial targets.


    The expected profit of clothing exhibition is decided by three factors at least: one is the historical experience, that is, the profit situation of the last clothing exhibition; the two is the floating capital, which is the largest part of the budget item; and the three is the profit rate, which refers to the ratio of the expected profit to the investment fund in the budget.


    If goodwill is the investment income sought by the sponsor, it must be measured in different ways.

    It can be intangible, such as the good evaluation of exhibitors and spectators of clothing exhibition, and also visible, such as important exhibitors' resources and professional audience resources.

    Of course, investment income is not entirely financial.


    In order to measure a

    Fashion Exhibition

    For financial results, a budgetary expenditure must be set up to achieve the established financial objectives.

    The way the budget is adopted depends on the specific circumstances.


    Two. Budgeting


    Budget is a plan that must be carefully planned by clothing and exhibition, and an important tool to achieve financial goals.

    The most challenging part of financial management of clothing and exhibition is budgeting, because the whole budget is developed on the basis of limited information and assumptions.


    Generally speaking, the basis of the compilation of the clothing exhibition budget is as follows: market judgement and prediction. Before the same or similar clothing exhibition projects, the general economic and future forecast uses the reasonable receipts and payments that can provide resources, and selects the applicable financial type (loan funds, advance payments, existing funds, etc.) for the financing of the clothing exhibition.


    Three. Budget implementation and control


    The implementation and control of the clothing exhibition budget is carried out after the direct authorization of the project manager.

    In the budget execution, we should pay attention to the three links of clothing exhibition: price positioning, cash management and financial risk.


    Price positioning can not only improve clothing exhibition

    Competitive power

    It is also an important factor in ensuring financial objectives.

    For the organizers, pricing includes the following objectives: profit objectives, market share goals, revenue objectives, exhibition quality objectives, and survival goals.

    Different pricing methods are different for different purposes.


    Cash management generally has two kinds of bookkeeping methods, namely cash accounting and accrual accounting.

    Cash accounting is the record of earnings and expenses when the proceeds are actually received.

    The revenue is added to the budget when the cheque is received and has been deposited in its own account. The cost is deducted only when the invoice is received and paid.


    For the organizers of clothing exhibition, to ensure the positive flow of cash, two measures need to be strengthened: first, the terms and conditions of payment must be agreed with each service contractor first, and determined in the form of a contract so that the organizer can determine his own payment obligation.

    Second, we must timely recover the due receivables, such as exhibitors' booth fees, so as to clear accounts payable by the underserved contractors.

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