NAME : Successful Budgeting and Planning

PURPOSE : This program provides a clear understanding of the budgeting process by understanding the latest edition of Uniform System of Accounts. Participants can interpret effectively and efficiently the income statement and make decisions according to concrete results.

CONTENT : This module includes life examples of poor and modern budgeting and reporting in the Hospitality and Lodging Industry as well as interpretation of income statements. The participants will have an opportunity to compile a simple budgets and Profit and Loss Sheets based on the Uniform System of Accounts for the various departments on a predetermined spreadsheet where they will see the effects of changing small seemingly small items.

 

DETAILS OF THE SUBJECT :

 

  • What are the components of modern reporting
  • What is the Uniform System of Accounts
  • Why is a Uniform System of Accounts important
  • Introduction of Uniform System of Accounts:
  • Budgeting & Planning Operations:
  • Methodologies for budgeting
  • Steps of a Budgeting Process
  • Review of the current years operations
  • Analyze General Business Conditions
  • Analyze the current competitive situation
  • Analyze rate
  • Project occupancy levels and gross sales
  • Preparation of Departmental Budget Plans
  • Consolidation of Departmental Budget Plan

8. Preparation of General Manager’s Budget Report.

  • Competition
  • Economic and Political conditions
  • Proposed changes in operation
  • Extraordinary items
  • Personnel
  • Facilities
  • Rates
  • Capital improvements
  • Cash Flow

9. Ratios and their meanings:

10. Ratio Analyses:

  • Liquidity Ratios
  • Solvency Ratios
  • Activity Ratios
  • Profitability Ratios
  • Operating Ratios
  • Rooms Statistics and Occupancy Ratios

11. Food and Beverage Statistics

12. Other relevant statistics

13. Income Statements based on Uniform System of Accounts

14. Income Statement as a meaningful management tool

15. Summary Statement of Income

16. Overall Statements

17. Departmental Statements

  • Revenue Analyses
  • Cost of Sales Analyses
  • Departmental Analyses
  • Interdepartmental transfers

18. Reading a Profit and Loss sheet and taking actions