Ticket revenue held until the event
Why ticket money sold months ahead is not yet revenue, how the Events pack holds it until the event date, and the countdown reminders before the day.
By Achekam · · 4 min read · For Events businesses in South Africa, Nigeria, Kenya
Launching soon. The Industry CRM add-on described in this article is launching soon. This article describes it as it will work at launch.
An events business that sells early-bird tickets in February for a festival in September has a pleasant problem. Cash arrives months before the event, and the monthly figures look wonderful in spring. Then the event happens, the suppliers' bills land, and September shows a loss. Neither picture is true. The spring months were not that profitable, and September was not that bad.
The cause is simple: ticket money was treated as earned when it was received, not when the event happened. This article explains why that matters, how the Events & trade shows pack in Achekam's Industry CRM holds ticket revenue until the event date, and the countdown reminders that come with it.
Why ticket money is not yet revenue
When someone buys a ticket, the organiser has taken money for something it has not yet delivered. Until the event happens, the organiser owes the ticket holder an event. If the event is cancelled, the money usually has to go back.
So, until the event date, ticket money is better thought of as money held for the customer than as income. Most accountants would show it as income received in advance, and move it into revenue when the event takes place. Under IFRS 15 that balance is a contract liability, and ACCA's article on contract assets and contract liabilities explains the balances that arise when revenue is recognised before or after the customer pays. Doing it this way has real benefits:
- Honest monthly figures. Each month's income reflects events actually delivered, so the owner can see how the business is really doing.
- Matching costs and income. The event's revenue lands in the same period as its costs, so the event's own profit is visible.
- A clear view of what you owe. Before the event, you can see how much ticket money you are holding for customers, which matters if anything goes wrong.
None of this changes the cash. The ticket money is still in the bank from the day it was paid, and it can still help with deposits to the venue and suppliers. What changes is how you read it. Cash held for an event that has not happened is not spare cash: if the event is cancelled or postponed, much of it may have to go back. An organiser who treats early ticket money as profit, and spends it accordingly, is the one most exposed when an event goes wrong.
Holding ticket revenue until the event date
The Events pack holds ticket revenue until the event date. Tickets sold before the event are not counted as revenue in the month they are sold; the revenue is recognised when the event takes place. It is one of the Industry CRM's deferred-revenue features.
Here is the effect in words. Tickets for a September festival go on sale in February and sell steadily through the year. Without deferral, every month from February shows ticket income and September shows mostly costs. With ticket revenue held until the event date, the months before show the money as held, and September shows the festival's full ticket revenue alongside its costs. The festival's real result, and the business's real trend, become visible.
Two points to settle with your accountant:
- Cancellation and refunds. Agree how a cancelled or postponed event is handled in the books, in line with your ticket terms.
- Multi-day and series events. If an event spans several days, or tickets cover a series, agree which date the revenue should follow.
Not a ticketing system
It is important to be clear about what the pack is not. The Events pack is not a ticketing or registration system. It keeps no attendee list, no check-in and no badge scanning. Tickets are sold through invoices or the till.
In practice, that suits two kinds of sale well:
- Invoiced tickets. Group bookings, corporate tables and hospitality packages, sold on an invoice to the buyer.
- Till sales. Tickets sold at the gate or a box office, paid in full at the till.
If you sell large numbers of individual tickets online, with seat selection, check-in and scanning at the door, you will keep a dedicated ticketing platform for that and bring the sales into your books. Talk to your accountant about how those sales should be recorded so that they are held until the event in the same way.
Countdown reminders
The pack also sets countdown reminders for the event: 30 days, 7 days and 1 day before it.
Each point suits a different kind of check:
| Days before | A useful check |
|---|---|
| 30 | Ticket sales against target, sponsor and exhibitor onboarding, vendor confirmations |
| 7 | Final numbers to caterers and security, artwork and badges printed, staff rosters |
| 1 | Floats counted, tills planned, site access and contact lists |
E-mail and in-app only
Reminders in the Industry CRM go by e-mail and in-app only. There is no SMS and no WhatsApp. Any reminder that goes to customers stays off until a workspace administrator switches it on, is sent at most once, and is limited by a daily cap.
For a large event, that cap is worth checking in advance. If a reminder is meant to reach many customers on the same day, find out what the cap is and whether it fits.
Setting it up
Talk to your accountant before the next event goes on sale, agree how ticket revenue and refunds should be treated, and decide which countdown reminders the team needs. Then set the event date carefully, because the revenue follows it. Deposits for tables and packages still go on invoices, as explained in why the till needs full payment, and the floats and tills for gate sales are covered in pop-up tills and floats for an event.
General guidance only, not advice on your own circumstances. Tax and payroll rules change: check the current position with the authority or your adviser.
