How complicated is managing the annual
conference budget?
For an association Congress is a highlight activ-
ity, and the entire team of volunteers and staff
are working towards this event on annual or
biennial basis. So, I would say preparing and
managing the congress budget is a primary and
most important task for a successful result.
Depending on the association structure, size of
the event, what services are outsourced, how
many partners and supplies are involved, etc. it
can become quite a complex matter.
What do you think is the weight of VAT in
managing the budget of an event?
To illustrate complexity of VAT I’ll tell you a
small story:
Several years ago, I was attending a VAT work-
shop in Brussels with my colleagues-CEOs. It
was designed for associations to explain the
basic rules of VAT and how associations can
manage VAT for events. I still remember one of
my colleagues saying after the end of the work-
shop: ‘I seemed to understand more about VAT
before entering this room, than after leaving it.’
I must confess we all shared the same feeling. A
simple answer is – no matter how much you try
to learn about VAT topic and manage it your-
self, it is always better to engage professionals.
Budget management
From an administrative and financial perspective, managing the
budget of an international conference presents specific challenges.
It is crucial to establish a detailed initial budget that takes into ac-
count all planned expenditure items, including hidden or less obvi-
ous costs. Negotiating and managing contracts with suppliers, ven-
ues, and partners is critical. It is important to secure favorable terms
and ensure agreements are respected to maintain the budget.
In that scope, it is mandatory to ensure that vendors provide valid
Legal invoices; this is the document that enables the association to
have the outgoing VAT reimbursed by tax authorities. Any breach in
the law makes the refund rejected.
Cash flow management is essential, as there can be a significant lag
between the moment when expenses are paid and revenues
(registrations fees, exhibition fees and sponsorship) are received. It is
necessary to ensure that the organization has sufficient liquidity to
cover operational costs at all times.
Continuous monitoring of spending against the planned budget is
vital. This requires regular budget updates and real-time adjustments
to avoid overruns. Regular financial reports must be produced for
transparency and especially for monitoring by internal and external
stakeholders, including sponsors and funding agencies. These reports
also help plan future conferences.
Compliance with local and international tax and financial regulations
is imperative. This includes managing VAT matters, tax reporting,
and compliance with international accounting standards.
After the event, it is essential to conduct audits and evaluations to
review financial performance and identify areas for improvement.
This information is crucial for the organization of future conferences.
BC&A
Zhanna KOVALCHUK
ESSKA Executive Director
Does hiring the services of BC&A seem rele-
vant to you given the challenge of budget
management?
We involved BC&A to manage our Congress
budget VAT exactly for the reason that we
needed a reliable partner, and as a bonus -
they specialize on Associations events VAT.
They might be quite rigid at work, but they
are certainly professional and know their stuff.