Organization of trade fairs

In today’s dynamic business world, companies must effectively promote their products and services in order to achieve their expected objectives. Trade fairs are one of the most efficient methods to acquire new contacts and establish valuable business relations. In this context, professional companies that deal in organization of fairs play a crucial part, creating platforms that connect vendors, visitors and potential partners from various sectors.

Companies that specialize in organization of fairs are experts that plan, coordinate and realize comprehensive events, presenting products and services of various industries. Their activities not only involve the organization of the event itself, but also the marketing, logistics and ensuring proper conditions for the vendors and visitors.

Key services offered by companies that organize fairs:

1. Planning and strategy: before the event, organizers analyze the market and the industry needs, which allows creating an attractive offer for the vendors and participants of the fair.
2. Logistics: ensuring a proper location, infrastructure (e.g. exhibition stands) and technical facilities (sound system, lights, Internet) is crucial for the efficient realization of the undertaking.
3. Marketing and promotion: promotional activities are necessary in order to draw attention of as many people and companies as possible. Organizers use various communication channels, including social media, newsletters and online ads.
4. Vendor and visitor service: professional service is the key to success of the event. Organizers ensure that vendors are provided with proper support and facilities while the visitors feel comfortable and can fully use what the fair has to offer.
5. Performance analysis: once the event ends, it is important to collect feedback and analyze the results, so that future editions of the fair can be improved.

Participation in a fair is not only a chance to present one’s offer but also a great opportunity to establish business relations, acquire new knowledge and find potential customers. It is also a perfect moment to observe the current trends. Thanks to fairs, one is able to present products, receive direct feedback and build the brand’s identity. Companies that deal in organization of fairs create a space where people can exchange knowledge and ideas as well as promote innovative solutions. Thanks to the professional approach, business owners have the chance to find valuable contacts and expand their knowledge. In the era of digitization and changing trends, organizers of fairs must be flexible and innovative. Choosing the right company is the key to the success of the whole event.

Financial settlement of fairs: the key to success

Fairs constitute an important component of the business strategy of many companies and a perfect opportunity to establish new contacts and promote products. However, the organization of and participation in a fair requires detailed settlements that are necessary for the performance assessment of the undertaken actions.

The first step in the process of fair settlement is to collect data concerning costs related to the participation in the event. Direct costs can be settled on the date of the undertaking. Any expenses incurred before the event must be recognized as accruals and prepayments, according to the period basis and accrual basis. Such costs include:

1. Charges for the stand,
2. Rental of a conference room,
3. Transport costs,
4. Purchase of promotional materials,
5. Equipment rental,
6. Accommodation,
7. Technical services,
8. Remuneration of the people involved in the organization of fairs,
9. Business travels,
10. Catering,
11. Costs of banquet events.

The next stage is the performance analysis of the event. The most important indicators include:

1. Number of acquired contracts: the number of people interested in the undertaking,
2. Sales: the number of orders made during fairs.

Another key aspect for a business owner is the data analysis concerning revenue generated as a result of the organization of the fair. Main sources of revenue include:

1. Rental of stands,
2. Registration fees and entry tickets,
3. Technical services,
4. Marketing services,
5. Ads and marketing,
6. Cancellation fees,
7. Assembly and modernization of stands,
8. Licenses,
9. Rental of conference rooms.

As with the settlement of direct costs, the revenue generation date should be in line with accounting principles – usually it is the date of the event. VAT settlements require an individual approach: advance payments are subject to VAT although they are not considered as revenue within the meaning of CIT.

Challenges and difficulties – accounting aspects

At MDDP Outsourcing, we keep the books of companies that deal in organization of fairs, adjusting to the specific needs and settlements of the customers. We utilize an extensive account system, including settlements, costs, revenue and accruals and prepayments. The analytics is prepared by fairs and products to allow for a detailed analysis of financial performance, both from a historical and current perspective.

Due to challenges such as fast month closures during fairs, we must work effectively and use automated processes. Thanks to innovative solutions such as importing purchase documents from the platform to the accounting system or automatic account settlement, we minimize the risk of errors and save time.

Another important aspect is the settlement of direct and indirect costs. Indirect costs, such as marketing or employee remuneration, are not directly related to specific services and must be properly allocated. Direct costs are settled at the moment of completion of the service which in the case of fairs will be the date of the event.

Service for customers dealing in fair organization requires advanced accounting settings and cooperating with the IT department. Thanks to modern solutions, we are able to satisfy customer’s needs, ensuring effective and accurate settlements.

Ewelina Kukulska, Manager w MDDP Outsourcing