The age of digitalisation has allowed for profound changes in hospitality, not least in the area of financial management and commercial awareness of the wider senior team.
This simple online PO form sets out a very simple but incredibly powerful system that allows for complete cost control within your hotel. This form sits within an eco system that works in the following way.
- At the end of the each month, HOD’s are provided with spend allowances linked to the revenue forecast of the following month from your P&L forecast or budget. It’s important that the HOD is aware of how revenue is tracking so that if revenue is pacing below budget costs can be reeled in to protect your profitability.
- The form below allows for departmental monthly expense planning, including bulk purchases that can be accrued across a few months if required.
- When the HOD submits this form it hits their line manager who may be the Ops Manager or GM. It’s critical that the manager completing this PO knows if this expense is within their budget.
- There will always be emergency spend for a variety of reasons but these need to be accounted for by building in headroom and contingency.
- The awareness of budgetary control means that HOD’s can get involved in budget creation for their department.
- Best practice is that HOD’s are mini business leaders of their own departments and this process allows them to take the full control which underscores the reason they were actually hired, and with this system you’re giving them the tools to deliver.
- Each week the FC will export all PO’s for the month and run a Pivot Table and quickly cross check spend against budget/forecast, making adjustments where revenue pacing may be under pressure.
- At the weekly GM/FC meeting, a simple report outlines that all costs are under control.
- This system allows you to not just fire the cost arrow, but it allows senior managers and your board to follow that arrow directly to the bullseye.
- This is a simple system for your team and does not require BIG TECH along with significant costs.
The price for this system is £995.00 per year per property (£82.00 per month). The system also comes with a mini Cognito CRM as well as 365 support which includes updates to your system, such as adding additional nominal codes or expense categories. The price also includes a day onsite for your bespoke build and training.
We can also provide Pivot Table training in Microsoft Excel on a half day course at a cost of £450.00. This is not included within the COSTSHIELD setup.
For more information please contact info@hotelgeneralmanagers.com
