Create Your Event Planner Invoice Example for Finance Effortlessly

Event planner invoice example for Finance

okay after you have done with all the foundation of your business okay one of the most important thing that you have to know is managing your finance okay although you have generate a lot of profit okay you have maybe a few million profit something like that example but once you did not manage or properly manage your finance then the profit will diminish just like that okay so good morning to all my students today we will learn a new chapter that is chapter 10 okay managing your finance okay in a business managing your finance is one of the most important things okay you have to have a basic knowledge on how to manage your finance okay throughout this chapter okay i will teach you one by one the basic knowledge about the finance itself okay although i'm not someone who have the finance background but these just the basic things or general knowledge for you and in order to be a better event planner okay so we have a sixth learning outcome for today okay so first and foremost is financial statement okay number two is paying the vendors number three is pricing the service number four is maintaining cash flow number five is event costing and last but not least is taxes okay so everything that inside in this learning outcome is the things that you have you maybe before this you have learned okay so if you have learned this kind of thing okay this will be the revision for you but if you do not really have learned it before this okay so welcome to the new knowledge okay i will teach you on how to create a financial statement how to analyze a financial statement okay whether your financial statement is good or not and also some all other knowledge okay so do not worry do not resolve so we will learn the first learning outcome that is financial statement itself okay if you are as a student okay you have your own maybe academic report okay so for a business what is the report card okay so the report card is financial statement so what is the financial statement itself okay so you can see in this line financial statement can be defined as a written okay a written record that convey or show the business activity and the financial performance of a company okay so just like i said before if you as a student so how you want to measure your performance okay you see your report card or academic card okay an iit result okay so how you want to know that your company doing excellence or your company are fail in your business so it show in the financial statement so financial statement are divided into three parts okay so all these treating combined is known as financial statement okay so first and foremost as you can see in the slide profit and loss statement okay number two is balance sheets number three is cash flow statement okay so all of these three things when it's divide and when it is combined it is known as financial statement so if you want to know whether a company doing good or doing bad in their business performance you see all these three things okay and usually they are being produced annually okay so you can see maybe you can google after this nestle financial statement of nestle annual report okay all that three things will be included in the financial statement okay so what is the use of financial statement okay what is the role of initiatement okay why people do financial statement okay so financial statements are often audited by government and government agency accountant the business firm itself to ensure the accuracy and for tax taxing okay financing and investing purpose okay through this financial statement okay you maybe can identify how many tax that you have to pay annually okay maybe how many uh money that you can invest a new in a new company maybe if you get a lot of profit maybe you can open the franchise okay all these three all these important information are being shown by the financial statement itself okay so the next is we want to identify so what is profit loss statement what is balance sheets what is cash flow statement sir okay so these three things okay is in this line okay so profit and loss statement are also known as p and l statement also income statement okay so if people say that oh do you know what is p and l so you have to know that p and l is then for profit and loss statement okay so profit and loss function is to show okay how much your company is making that is profit or how much your company is losing that is lost rugi over a period of time that is maybe monthly maybe quarterly or maybe annually so all of this information are being shown in the profit and loss statement okay so how about balance sheet okay balance sheet okay so it is stable that show your asset or liability and capability capabilities okay at a specific point okay it also showed that whether your asset okay whether your ability whether your capability is balanced with the money that you invest okay for example me mr irfan i buy a printing machine okay and i sell the magazine okay i buy the printing machine for 1 000 ring okay i buy a printing machine for 1 000 ringgit and the machine only can produce a magazine for 900 ringgit so that printing machine is my asset but the printing machine only can produce 900 ringgit revenue profit okay is it balanced there it's not balanced right when it's it's not balanced so the asset is not fully beneficial for my company is it good for my company no right so i have to resell the printing machine something like that that is known as balance sheet this this that's just a few see a few explanation or example okay so it's typically generated monthly quarterly and annually when the books are closed okay so when the books are closed are and always at the end of the month okay and last but not least is cash flow statement okay so one of the most important information in a company is where the money outflow means going out and where the company and where the money is in flow means going in okay we want the out we want the money that going out is balanced with the money that come in when the money that come out is not balanced with the money that is come in then we produce loss okay and also cash flash cash cash flow statement okay sure that there are no discipline action that should be taken for example if there are something that um prohibited okay outflow of cash okay maybe it is abuse of capital someone use company money to buy something else that are not beneficial maybe bribery all that kind of thing can be detected through the cash flow statement we do not want that kind of problem have or occur in our company okay so second learning outcome is paying the vendor okay because one of the most important element in an event planning business is vendor you cannot be operated and your event cannot be done without a vendor so you have to pay the vendor okay so paying a vendor also a very tedious thing a very problematic thing a very tough job okay because keeping enough money to flow in the business is a very difficult okay because you cannot say that oh every day i will have a customer okay every time i will have a customer every customer will bring a lot of money no in a business okay we will not having a sunshine every day okay just like you say that ok you cannot expect that every day you will have a continuous money flowing in your business okay therefore it can be words when it requires from the payment from the vendor and sad deposit often one month before an event okay this is something common for a vendor okay for example a flurries that are provide the flower they will always ask deposit a month before the event because they don't want you to lie to them and they do not want once you get the product you will run away maybe mia missing in action okay so they want to secure the customer that is you even planner and ask for deposit okay so this kind of thing is very dangerous thing but this is some tips that you may use in order to constantly consistently paying your vendor and also the safe way how to pay your vendor okay so first and foremost is bartering service okay so battering service is some a service where you do not have to use the money you are using you are exchanging the service okay for example okay you are the event planner and you are doing a business with the printing service okay so the printing service needs someone to design a poster for them okay and you as an event planner you have a very good design skill so you ask from the printer service people okay so mr miss haswani okay you will print my thing for free and i will design for you a poster for free okay so that's kind of thing is known as battering service okay there are no financial things that are related okay you could provide you can see in the slide okay whenever possible save money by bartering service with other business owner okay you could provide the planning help in exchanging for brochure printing service or creation of signage okay that is the example okay so number two is take deposit okay in order for you to pay the deposit for vendor you have to pay you have to ask the deposit from the client first okay because first and foremost the client okay in and to ensure that the client is not running away for to ensure that the client is not lied to you to ensure that the client is uh keep playing with you okay keep stuck stick with you you ask deposit from them okay because some of the client okay once the event is finished it has a less motivation to pay okay that is something a very very normal okay because once the event that once the event is finished okay my part is done okay i have get the result okay but i don't want to pay to you maybe something like that the client is acting difficult okay so number three is start with the plenty of cash reserve i also have teach you this kind of thing in the previous chapter please ensure that you have the first six month of operation project okay that is cash reserve you cannot touch that cash reserve and you can als you have to ensure that you have a six month six month a number like cash reserve okay this cash reserve will only be used when there are emergency okay so if you have this cash reserve okay so paying your vendor first okay will be not something that are problematic enough okay so number four is charge enough for your service okay so how you want to charge enough your service that is pricing method okay after this also i will teach you okay you you have to price it strategically so how you want to price it strategically okay so make a careful assessment on what need to charge in order for you to get the profit okay and also please charge your price okay along with your service okay so do not charge it uh not really uh it's too high or too low okay so this is the pricing of the service there are so many type of or so many ways on how you want to put the price of the service okay so there are three ways on how you want to charge your service that is better to determine the pricing of the service so we we are talking about a service okay we are not talking about the product okay we are talking about service service is something that intangible you cannot see okay for example is event planning service eventually service is something that you cannot see you cannot see advice okay you can see decoration you cannot see yes you can see the decoration but you cannot see the creativity behind the decoration okay all the kind of creativity behind the decoration is being produced by the event planner okay so there are three ways or three factors on how to determine the pricing service first is market segment serve okay number two is geographic and location number three is experience and reputation okay these three things is very very important okay so first and foremost pricing the service that is market segments of okay so i have teach you in the first chapter where there are two market segments in event planning first is social event second is corporate event okay for the special event okay for the solution event usually the customer will put the price first okay for example swan come to my company swan say that i want my birthday party for 500 people for 1 000 ringgit okay using usually for a social event customer will put the price first usually okay this is we're talking about something that common usually the customer will always put the price first okay i won this birthday party for 1 hundred thousand ringing maybe something like that so you can see in the slide in the social event industry planner typically receive a fee for their service okay plus a percentage for some or all vendor fee okay so you as the social event planner okay you will try hard okay to produce an event okay within the budget of the client maybe the clients say that just like this one say before me swansea he and she won a birthday party for 2000 so you will do a birthday party for 2000 ringgit however for a corporate event planner will always charge a fee okay so the corporate event for example a conference okay i want to do a conference how much do you charge so always for a corporate event the one who will touch is the event planner itself okay because this is something that are formal okay so if something that formal okay the event planner will put the price okay so when mr tanyani come to me okay i want to do a conference okay how much do you charge say mr nyani to me so i will say that i always do a conference for 10 000 ringgit so can you pay so if if both of the parties agree about the charge then they will do okay so for example planner buy flower markup them and charge the amount to the client so this is something that are very common for a corporate event okay and also some of the social event but the social event okay just like i said before the customer always put the price first okay so number two is geographic and location this is very very very easy okay do you do you ever um go to kl and find that the item in kl is more cheaper than the item in sarawak that is known as geographic pricing okay so if you ever go to kl also you uh you see the food is much more expensive than in sarawak okay because the living cost in kl is so much higher in sarawak the living cost is very very cheaper so it's all about geographic georgic kind of pricing okay so fee are uh higher for some area fee are higher cheaper for some area okay so you have to know how many cause how cost of living in the area okay so that is geographic and location maybe you can put some higher price for an area that full of rich people maybe you can put a low price for a place that are not full of rich people okay so last but not least the pricing service is the experience and reputation okay so for a starter someone that do not really have a vast kind of experience it reasonable to charge less for planning service okay if you are experienced enough then you can put a higher service you can say that oh i have done a lot of event so if you want to get my experience you want to get my advice because i am experienced enough you have to pay more okay but don't judge too little just to get the job because you have just like i said before okay you have to be wise in pricing the service although you are not experienced okay you can you do not really put low service low fee or low price for your service okay so next we will learn the maintaining the cash flow okay maintaining the cash flow is also important just like i said before the money that comes out of flow of money must be balanced with the money that is coming to your company that is in flow of money so if inflow is more than upfront and you are doing good that is profit okay but if the money out is higher the money going in then you are generating the loss okay so how to maintain a good cash flow okay so there are four ways that i'm suggest okay in order for you to maintain a good cash flow okay so first and foremost pay your company bill on time do not pay it early or late okay so pay your company bill on time because if you are company if you pay the money on time okay after this i will uh i will explain it a little bit more okay negotiate the latest possible payment of the balance of vendor bills okay number three is make sure your invoice are clear accurate and timely okay and last but not least is keep inventory and supply to a minimum okay so pay your company bill on time but do not pay early or late okay so keep your money in bank as long as possible it will be your cash reserve okay so keep file for build you for 10 day 20 day and 30 day okay so all this kind of system so you can uh read more about the system after this will ensure that your bill will be paid on time okay if you pay it too early excuse me you will have to pay the loss also okay because it's too early okay so negotiate the latest possible payment okay so with the vendor often vendor will give you a 30 day after an event to which to pay so if you are negotiate with them properly okay you can get a longer time to pay okay but make sure that you pay to the vendor you want to produce a good relationship with the vendor okay make sure that invoice are clear accurate and time okay and last but not least is keep inventory supply to a minimum okay so you don't want to uh hold okay become a hoarder for your ivan three okay and also you don't want your inventory to be two liter because this inventory will be your asset for your event planning businesses okay so next and i think uh the second last is event costing okay even costing also very very important so it is important to know what your client want and what they want to spend and what you want to spend in order to achieve it okay so you have to know that you will spend money that will make your customer happy but do not over spend your money because any event have their own costing okay so you don't want to produce a loss if you are producing the loss you spend too much but you get too little okay so estimate the cost by adding a supply or total fee of service to client and also estimating okay so how you want to estimate it after this okay then i will show you some of the things okay that you need to buy in order for you to do an event the basic things okay there are so many things that you have to buy okay the expenses okay but i will not explain it one by one so you may read it by yourself because this is too easy and i also have expanded in the ivan three maybe some of it is i have uh be explaining everything for example the site rental i also have i have told you the site rental you have to buy 10 okay which kind of thing you want to buy okay the vendors the supply the equipment the license and permit i also have teach you which kind of license that you have to uh buy in order for you to get in this kind of things okay which permit that you have to acquire okay some of the events need a permit okay for example um there are running kind of events something like that so all this kind of thing is the event expenses that you have to pay and also you have to properly costing for an event do not over spend okay and last but not least is we want to talk about something that are more serious that is taxes okay texas okay it's not texas texas texas okay so there are three type of taxes okay first is personal income okay second is sell tax and last but not least is corporate income tax okay so it's usually uh the common tax that you always here is sell tax okay gst have you uh hear about gst that is good and service tax okay so that is included in the cell tax okay that is levi by levi mean um obligate by a cities okay something they are a must okay they are being uh done by a city or government so for example our malaysian government okay one of the things that they are mandatory for all the people is to pay gst that is good and service tech maybe before this also we have gst maybe right now we have a service tax maybe something like that okay so there are determined by some of the city and some of the state okay maybe uh you have to pay six percent for the sales tax okay so second is personal income tax okay personal income tax if you are a sole proprietor okay or a partner you will not receive a salary like an employee therefore no income tax okay income tax is for someone who received the salary every month okay so if you are the one who received the salary every month okay in the same amount okay for example the government service something like that uh a business uh employee okay the business owner do not have personal tax okay so they will pay the corporate income income tax okay for the business owner okay is organized as a corporation you have to pay tax of all profit okay so there are a few rules that you have to know about tax planning okay so the first rule is do not incur an additional expenses solely for the sake of the getting extra deduction okay this strategy is not cost effective some of the people okay will sponsor maybe an orphan okay yes that is good okay but do not put a higher emphasize on just to escape from paying the tax there are so many ways actually how you want to escape from paying the tech for example you buy a book you buy uh you do a sponsorship for a university you do a sponsorship event for uh orphan a kabachikan something like that you will escape from the text okay but if you want to just add an and it is not good for your company then the strategy is not really cost effective okay number two is immediately differing tax allow you to use the money interest fee before paying it to the government okay i'm not really sure because something okay so i will explain it on the next class and last but not least is if possible cam income in the most advantageous year some of the year have a low tax some of the higher have high tax so you have to do projection cleverly or wisely okay so i think that's all for today okay thank you so much so if you have any question uh regarding this topic so you may ask within the sixth minute okay i hope that you understand i will only put a very high emphasize on something that i have teach you and i will not put a really high emphasis in the exam for something there are i'm not teaching