New Year, New Budget? Chamber Pros Share Best Practices
The start of a new year can signify many things and for some in the chamber industry, it means a new budget and the start of audit season. And with the wrench the pandemic threw into many budgets, it can be an arduous process in trying to predict how a chamber’s year is going to go. ACCE’s Finance and Operations Division members discussed best practices for budgeting and audits during its January roundtable call. Here are a few of the takeaways.
Create budgets that can weather a crisis.
The pandemic created vast uncertainty around items in a chamber budget like member investment dollars and event revenue. One suggestion is to create various budgets for different scenarios, including the best and worst case. Since it’s hard to predict the future, creating a conservative budget to be prepared might be helpful.
Answer questions before they can be asked.
When the budget is put before the group that will approve it, whether that’s a finance committee or full board, try to anticipate any questions that may arise and address them during the budget presentation. Another tip is to add details to the numbers. Not only will that help make the case to the board, but it can also provide guidance to ensure the entire staff can explain the budget if needed.
Audits shouldn’t be scary.
Especially for new chamber professionals, either new to the industry or new to a chamber, sending out an RFP to members for an audit can be intimidating. But auditors aren’t out to get you. Auditors can help clarify processes and make sure that your chamber is compliant. Most times, auditors will give you a list of what they’re going to ask for before the process starts.
Not required to do an audit? Try a review instead.
If your chamber isn’t required to do audits on a regular basis, you might opt to do a review instead. While your chamber will get a report, a review is more limited in scope than an audit but can help provide confidence in financial statements, especially when it comes to decision-making. Plus, if you’re looking to earn your CCE in the future, you can alternate reviews and audits with the schedule depending on the size of your chamber. Even if an audit isn’t required, conducting one can help bolster your chamber’s transparency, integrity and professionalism.
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