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Do you know how your costs and profitability compare with similar successful hotels? We do.
And we have the sector experience to help you improve financial performance across your hotel business with our hotel accounting and hospitality accounting specialism. Areas we look at include the following:
You should expect a gross profit margin of around 70%. If you're not achieving that figure here are some ways we help you improve:
Buying at the right quality and price
Managing stock and wastage
Accurate allocation of food revenue on package deals.
A GP margin in the region of 70% should also be expected on beverages. Similar factors apply as for food margins.
Payroll costs should be around 30% of your revenue - but it's easy for costs to creep up. We help you set up and manage weekly budgets to prevent staff costs eroding your profits. We also help you budget effectively for planned changes to employment laws.
Other items you need to manage:
Laundry costs – could outsourcing save you money, do you have the accurate data you need to make that decision?
Utility prices – have these been challenged / fixed?
Rates – has a recent rates review been undertaken?
Marketing – is the return on investment being monitored so you can focus on the most effective channels?
Common hotel accountancy issues we help our clients get under control:
Reconciliation of guest ledger, corporate ledger and deposits to the Property Management System (“PMS”).
Understanding the recoverability of the debtors within the PMS.
Reconciling credit card receipts that have not yet cleared the bank.
Recording and managing stock.
Understanding of prepayments and accruals. These can have a significant impact on profit.
Reconciling the payroll liabilities to the current month payroll.
Reconciling the VAT outstanding.
The Langricks team use sector experience to offer insights that help you manage your business more profitably.
We would be delighted to help you with a free desktop financial health check, reviewing the financial controls in place and reviewing the quality of the management information prepared.
In order to obtain our FREE health check questionnaire, please Email Us