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Preparing a Departmental Budget
| Date post: | 01-Apr-2015 |
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Preparing a Departmental Budget
Why Do We Need to Prepare a Budget?
To determine and clearly list our objectives
To provide us with a guide to achieving our
objectives
To serve as a basis for evaluating
performance
House Keeping….
“…. Is The Backbone Of An Organization.”
Preparing a Budget for Housekeeping
10
Different Types of Budgets
Zero-based budgeting
Incremental budgeting
Preparing a Budget for Housekeeping
11
Capital Budget
Operating Budget
Fixed Cost
Variable Cost
Operating Equipment
Fixed Costs and Variable Costs
Fixed cost
A cost or expense that will not change as a
result of changes in revenue or level of
business
Variable cost
A cost that changes in direct proportion to
the revenue or volume of business
Fixed Costs and Variable CostsPayroll
Payroll is an example of fixed and variable
costs (the largest cost we control)
Depending on Hotel Occ % this needs to be
budgeted to flex.
However this is one of the costs that needs
to be monitored on a day by day basis.
Operating Equipment
How much you will use during a period?
How much is the cost to order?
How much is the cost to carry the items in
inventory?
The Impact of Inventory on Cash
The cost of:
The item
Storing the item
Money
TEAMWORK!
Financial Success is about teamwork.
It is EVERYONE’S responsibility to ensure that
the hotel is as profitable as possible and,
therefore, meets its financial targets!
More Information
Templates of the Slides are available from
the UK HouseKeepers Association.
Contact: Arletty Jooron
Executive Housekeeper
Cavalry & Guards Club
Thank You
