Hotel finance. Management control. Let me tell you. What is a hotel. Risk control and finance.

Original: Li Sheng

After hotel has budgeted

Financial controls need to be strengthened

Until budget is controlled

The budget doesn't make sense

The realization of set goal can only develop along with it


The financial management of a hotel must deal with income and expenses of hotel's operations

And other aspects of implementing effective controls to ensure that budget targets are met

Create a hotel financial control system

The hotel exercises financial control

First, we must create a sound financial control system

Establish financial control in organization

The division of labor, duties and other aspects is guaranteed


The system must be installed between departments and within departments

Effective management system

Make each department

Employees of each position are related to each other

Mutual cooperation

Control each other

Mutual constraints

To prevent occurrence of various abnormal activities such as fraud

Income control

1. One-time payment method


Typically, a one-time billing method is used


After you check into hotel, you can be inside hotel

Excluding individual points of consumption such as shopping malls

Signature credit consumption


Auxiliary control methods and control systems should be installed

Each account in main guest account

You must attach original attachment signed by guest

The maximum debt amount should also be specified

After exceeding limit

You must ask guests to pay immediately

So that hotel does not remain passive due to too much debt for too long

2. Business Revenue Audit

To prevent fraud in business process

Occurrence of abnormal behavior such as corruption

The hotel should have an income audit system

Ensure recovery of operating income

Support interests of hotel

For this

The hotel should create a revenue post

To switch from cashier to night view

Go to Daily View Layered View, Layered Check

To ensure that business income is not lost

The purpose of nightly trial

Mainly to control guest signature in operating income

Usually at end of each working day

Day Trial is Night Trial

Continuation of work should be based on night review

For previous day's activities

The income situation will be carefully checked and reviewed

For example

Proof of public incomeabout nutrition

A la carte, which must be ordered by a waiter in a restaurant

Restaurant menu

Restaurant cashier

Three parties will check guest bill to prevent errors

3. Collection control


Increase control over each checkout

For example, account management

The hotel should have a management system where someone is responsible for billing

Registering number of invoices issued

Registration of blank statements, numbered and numbered one after other

View statement stubs one by one and number by number

Collectors at each service point

After change

Both must complete an Income Statement and a payment form


Revoke accordingly

Does invoice match submitted form

Is invoice sequential and related to previous day's invoice

4. Control of receivables

Accounts receivable

indicates that hotel is sold

Income from credit sales that have not yet been paid

Hotel tightens control over receivables

You can be sure

Recovery of operating profit to prevent bad debt losses


Amount of accounts receivable

Usually depends on business

External environment and internal policy of company

Regarding external environment of hotel

Macroeconomic conditions will affect amount of receivables of organizations

If economy is bad

There are often more customers who refuse to pay their bills

This situation is beyond subjective control of hotel


On other side

The hotel may go through internal management

Due to changes in our own credit policy

To change or adjust amount of receivables

Influence and control of receivables


Policy includes credit conditions, cash discounts

Credit standards and collection policies, etc.

Rigidity of credit policy

It directly determines size of company's sales on credit

And amount of accounts receivable

Although liberal credit policies may encourage sales

Increase income

But it also increases amount of receivables

And some credit management fees

A tight credit policy can reduce accounts receivable

Reduce credit management fees

But it also reduces income accordingly

Success or failure of hotel credit policy

The key is whether it's an increase or decrease

Income and increase or decrease

What is specific commission range?

Profit versus two

Does it increase or not and by how much

Additional profit. Dadditional income - additional costs

What about size, plus or minus

Hotels that are usually sold on credit

There is a dedicated credit management department

Depending on features of hotel

Such a department can be headed by a general director, chief accountant

Credit Manager, Account Manager

Catering manager and other staff

Let them study and decide

Hotel credit policy

After confirmation of credit policy

Personnel associated with loan work should be used

To fully understand and become familiar with it and strictly follow rules

For a perfect result of hotel accounts receivable control

Cost control

Controlling hotel expenses

Related to relevant rules and costs according to cost management

Budget requirements

Control entire process of value formation

To enable Enterprise Cost Management

From passive post-accounting to more active preventive management


Cost control is mainly controlled by budget

Key consumption indicators

Three main control methods and control of standard costs

1. Budget control

A budget is a hotel

Limit target operating expenses

Budget control based on subitems

Step by step getting budget index data for cost control

How to do it

Based on events that actually happened in current period

Total cost and amount of one item

Compared to corresponding budget data

Business volume has not changedIn case

The cost should not exceed budget


For consideration

Real situation and budget forecast

Sometimes not quite consistent


It is often necessary to complete several different volumes of business in advance

Calculation of budget data at level

Create a flexible budget

To keep cost realistic

Easy to compare balance and budget

Not just a certain amount of business

Budget level data


With a flexible budget

Only changes in business volume and variable costs

Fixed costs remain same


Typically, variable costs depend on size of business

Scale change based on change,

To define range of sales volume value in flexible budget

2. Basic consumption index control

Key consumption indicators

Refers to indicators that have a decisive influence on value of a hotel

Main consumption index control

Strict control should be provided for these indicators

Only manage these indicators

To ensure cost estimates are met

For example

If indoor material consumption is out of control

It would be difficult to meet budget target

Monitoring of key consumption indicators

The key lies in quota or fixed rate of these indicators

Not only quota or rate itself must be positive and feasible

And once indicators are defined

It must be strictly observed

In addition

Metrics other than these main consumption metrics

That is, non-core indicators

This will also affect cost of hotel


Controlling key consumption indicators

You should also pay attention to changes in non-core indicators at any time

After key figures are relatively stable

Or after increasing non-core indicators

Then it makes sense to control non-core consumption indicators

3. Standard Cost Control

Standard price refers to normal conditions

Business Element Standard Consumption

Includes operating expenses and operating expenses only

Excluding administrative expenses and financial expenses that are not related to department

Standard cost control

That is, based on standard cost of each business item

To control actual cost

Implement standard cost control

Cost standards can be divided into usage standards and price standards

To clarify responsibility for cost control work

Actual cost and standard due to use

Price difference

The reason should be looked for mainly in link of operation

Because of price

Difference between actual cost and standard cost

Basically, you should find reason in purchasing process

For example

During a certain period of time, a certain type of food

Raw material cost checked

It can be explored from two perspectives: price and usage

In terms of price

Standard price (guide price) to be checked

And actual price. Purchase Price

The difference between them

Then analyze reasons for differences

Make mistakes

If pre-evaluation is not enough, a temporary purchase

Lack of understanding of market conditions, etc.

This is an inevitable objective factor

For example, price increases, natural disasters, etc.

In terms of usage

The actual amount of this raw material should be used

Compared to amount that should be consumed according to standard

Use a specific time period first

All food products from this raw material are listed

According to raw material standards for each catering product

Use and sales of catering productfor this period of time

According to actual sales situation

Amount of raw materials to be consumed

Reuse countdown method

Calculate actual consumption of this raw material for period


Actual consumption for this period = opening stocks + input material in stocks at end of this period

The actual amount has finally been transferred

Compared to amount that should be consumed according to standard

After confirming difference, we will further analyze cause

This is not an acceptable standard

Or an error in operation or other reasons


If characteristics of purchased raw materials do not meet requirements

There may also be a difference in cost

The above are main methods of cost control.

It should be noted


Cost control complements consumption stage control

You should also pay attention to strengthening purchase of materials

Manage inventory steps

That is, purchase price of materials

Acceptance, storage

Strictly manage a series of links, such as inventory

To make hotel's cost control more complete and perfect

Analysis of hotel volume, costs and profits

Hotel value for money analysis

This method is commonly used in cost control methods in hotels.

This is also main method that management should master

Quantity-cost-benefit analysis is also known as

Balance Analysis

Or "break-even point analysis

The goal is to determine critical point of profit and loss in operation of hotel

This is breakeven point

The so-called critical profit and loss point is operating income of hotel

Fully offset by operating expenses

The split point between profit and loss

Determining critical profit and loss point of a hotel can predict hotel

Future business situation

For example, how many people and revenues does hotel get

What level can we reach without profit or loss?

When hotel's income reaches a certain level

How much profit can I get

How much revenue does hotel need to reach its projected profit target

1. Basic concepts

Marginal cost

Usually refers to production of product

Direct costs or operating expenses. Expenses

Variable cost c. Consumption


Refers to company's operating income

Balance after taxes and marginal costs

Calculation formula

Marginal Profit = Operating Revenue - Marginal Cost

Profit margin = Profit margin ÷ Operating income × 100%

=1-variable cost rate

2. Basicformula

Breakout point

As a rule, it can be obtained by calculation

Calculation formula

Amount of Gain and Loss Critical Point

Balanced Sales Volume = Total Fixed Costs ÷ Profit Margin

Revolutionary Income

Guaranteed turnover = total fixed costs ÷ specific profit

Hotel management is not only about capital preservation

This is a profit from rest of income

Add target profit to numerator of break-even formula

Available as before

Target profit

Formula for calculating expected turnover or intake volume

Target Reception

Total fixed costs + target profit


Profit per unit

Target turnover

Total fixed costs + target profit


Fields Fields


Expected operating income of hotel is 6 million yuan

Fixed cost is 3 million yuan

Variable cost is RMB 1.5 million

Target profit of RMB 1.5 million

Excluding taxation, determine profit and loss at critical point of income and target turnover


Marginal profit margin = 1-variable cost rate = 1 = 1.5 million yuan ÷ 6 million yuan = 0.75 = 75%

Balance Guaranteed Sales Revenue = RMB 3 million total fixed cost ÷ 0.75 marginal profit margin = RMB 4 million

Target sales income = (guaranteed sales income of 4 million yuan + target profit of 1.5 million yuan) ÷ marginal rate of return 0.75 ≈ 7,3333 million yuan

Quantity-Cost-Profit Analysis

Widely used in practice


There are many future uncertainties in real work

It is not possible to exclude completely

But using this method can reduce uncertainty

Hotel management

Work with forethought and initiative

Make your controls smarter