BUDGETING AND CASHFLOW

Managing the finances in a threatre group may not seem like the most exciting job but it is a  vital one. All shows, no matter what size cost money. To avoid problems relating to expenditure and cashflow a financial plan or budget should be prepared before each production. A budget is a simple tool which should make life easier for everyone. Below I have detailed some points you may want to consider when compiling a budget.

1. Ask for Help
All clubs and societies have a membership pool made up of people from all walks of life. It is very rare not to find someone with financial experience. If they are not already on a committee make sure they are asked for advice when it comes to preparing a budget. The process should be very simple but having someone who is comfortable with the process and spreadsheets will made live a lot easier for everyone else.

2. Overall Budget
As well as a budget for each show a set of annual accounts should be prepared for the society as a whole. In many cases there will be expenses that need to be paid whether or not there are any productions. These can include, insurance, running a website, letters to members etc. Similarly the group will need to account for income such as membership fees or if it rents equipment to other theatre groups.

The setting of individual production budgets should be set in the context of the overall financial plan for the group.

3. First Budget
If you are setting up a new society or it is the first time your school has produced a play  it can seem like an impossible task to prepare a budget from scratch. This is where you may need to ask advice from members of another society. If that is not an option then it is a matter of sitting down with the  Producer / Director and writing down, in as much detail as possible,  all the items that will be required. For an example of how to present the planned costs and income, click here

All productions are different therefore it is essential that an individual budget is prepared for each seperate production. As a general rule of thumb the larger the cast the larger the costs.

4. Budgeting in Schools
It is vital that you get the support of the school Head when planning to stage a play or musical. Half the battle is getting him / her to have confidence in the organisation of the production and more specifically you. There are so many “claims” on school funds that you need to be prepared when asking for  financial support. Having a clear and concise budget will go a long way. It is your chance to show that not only will it be of benefit to the students but that it  can also make a profit.

When you are finalising financial arrangements with the Head make sure you get agreement on how any profit is to be spent. Make sure it can be “ring fenced”  and used as “seedcorn” money for the next production.

5. Monitoring Expenditure
Preparing a budget is not the end of the financial planning. It is vital that expenditure is monitored regularly and compared to budget. Ideally an individual involved in the  production should be given responsibility for a section of the budget. For example the person in charge of costumes should be told how much they have to spend and at each meeting asked to give a brief account of expenditure to date.

Inevitably there will be variances to budget on individual items but overall expenditure should not exceed the total budgeted amount.

6. Summary
Planning the finances for a play / musical is crucial to the suceess of the production. There is no point planning an extravaganza if the financial resources to pay for it do not exist. Financial planning should not be the focus of attention and distract from the creative preparations but there there be someone  working quietly in the backround to ensure the production will at the very least break even.