The financial intricacies of Carnival is a topic often overshadowed by the revelry. This articles highlights insights from a recent interview with Atiba Caddle, Senior Director of Accounting and Corporate Services, and Ruthven Thompson, Senior Director of Assurance Services of Moore Trinidad and Tobago on the CCN TV6 Morning Edition. The interview explores how this cultural phenomenon operates as a business and what measures are needed to ensure its financial sustainability.
The Engine Room of Carnival
Carnival, with its vibrant display of culture, is more than just "bacchanal and the partying". It's a complex ecosystem that significantly contributes to the economy.
As Thompson aptly puts it, "It’s a whole ecosystem and people see the revalry and the fun side of it, but like with anything else, there’s an engine room, a back office that makes it happen".
The key message is to recognise how much goes into the delivery of Carnival, the employment it creates, and its contribution to financial stability of Trinidad and Tobago.
Structuring with Financial Acumen
Many involved in Carnival are deeply engrossed in the cultural aspects, often leaving financial considerations on the back burner. Caddle notes, "people are engrossed in delivery. They want to ensure that the product they provide to the consumer is a quality one. So, they get bogged down in execution".
This is where firms like More Trinidad and Tobago step in, providing structure and financial acumen. They assist with company structure, tax incentives, and ensuring compliance with audits.
Benefits of a Robust Financial System
Implementing effective financial systems can make an organisation more efficient and positively impact its bottom line. Carnival is a seasonal event, and businesses need to manage revenue generated during this period throughout the year.
"How do you manage that throughout the year? How do you look at your overheads and expenditure throughout the year and budget that and ensure that you can make another carnival and you can maintain your employees and continue your professionalism and your service delivery throughout the year".
Assurance and Transparency
Sponsors and investors require transparency. Thompson explains that "Sponsors... want to know that the information that is contained therein has some degree of merit and reliability that comes with an external entity providing the resources".
Independent third-party assurance provides reliability, which is particularly important for entities seeking grants, government funding, or sponsorship.
Exporting Carnival: A Year-Round Opportunity
Carnival's influence extends beyond Trinidad and Tobago, with brands expanding into different countries.
"Carnival happens in Trinidad, but it happens throughout the region as well. And Carnival is a product that is essentially exported now".
This expansion creates a nearly year-round opportunity for revenue, as artists tour and events are promoted internationally.
It is never too late to start structuring finances properly.
"Start now, start putting things in place, structuring it, right? Everything. Let's look at what's happening right now and how we going to continue throughout the year". By measuring and managing expectations, Carnival can continue to grow and contribute to the GDP.
Carnival is more than just fun and revelry; it is a business that requires serious attention. Recognising the value chain and the various revenue streams, stakeholders can ensure its sustainability.
"You are part of that value chain. You are part of that ecosystem and Moore is always here to be your trusted advisors".
Those interested in Moore Trinidad and Tobago’s services can contact them via email at info@moorett.com, by telephone at 1-868-765-2853, or through our website moorett.com.
To secure the future of Carnival, a shift towards greater financial structure and sustainability is essential. By doing so, Trinidad and Tobago can ensure that Carnival continues to thrive as both a cultural celebration and a significant economic driver.