hotel management

Chapter 25 Hotel Financial Management (1)
Due to the continuous operation of hotel business activities and the cycle of reception business, hotel funds are also in a cyclical movement.If the hotel wants to obtain economic benefits, it is necessary to study the specific form and movement law of hotel funds, manage the movement of funds according to the laws, and continuously increase the value of funds.

The first (section) concept and significance of hotel financial management

Hotel financial management is based on objective economic laws and national policies, through the management of hotel fund formation, distribution, use, and recovery processes, and the comprehensive management of hotel business activities using currency value formation.Hotel management is inseparable from people and things, namely living labor and materialized labor.These two factors are uniformly expressed as value in the production and sales process of hotel products, that is, hotel funds.Hotel management not only needs to raise funds, but also allocates funds to departments and forms of funds, such as the allocation of reserve funds, management funds, and currency capital ratios.The use of funds incurred in hotel business activities is consumed, and the consumed funds must be recovered in the form of currency.From being occupied to being recovered in the form of currency, this activity process is expressed in the form of accounting and constitutes the hotel's finances.Financial management runs through the whole process and all aspects of hotel business activities. It should not only fully reflect the hotel's business conditions, but also use its own unique means to promote or restrict the hotel's economic activities to ensure that the hotel can obtain the expected benefits.

The circulation of hotel funds must reflect the economic relationship between the hotel and all aspects.Hotel finance essentially reflects the economic relationship formed by the flow of funds during the operation of the hotel.These relationships mainly include: power-responsibility relationship between the hotel and the state, product exchange relationship between the hotel and relevant departments, settlement relationship between the hotel and customers, accounting relationship and distribution relationship within the hotel.In dealing with all economic relations, hotel finance implements valuation, accounting, payment, and settlement, so that the economic activities of the hotel can be carried out normally according to the law.At the same time, the hotel controls the hotel's cost, price, profit, and distribution through bookkeeping, accounting, analysis, and decision-making, for the purpose of the hotel's economic benefits.It can be seen that as long as there are economic activities and economic relations in the hotel, hotel finance has its special role.

Hotel finance plays the role of financial management in hotel business activities.Financial management plays a very important role in the operation of the hotel.

1. Guarantee the hotel capital supply and promote the effective operation of the hotel

A certain amount of funds is the basis of hotel business activities.In order to ensure that the hotel is supplied with funds, the financial department must check and approve in detail and actively raise the funds needed by the hotel.Having funds is like continuously injecting fresh blood into the hotel, so that the hotel can operate effectively.

2. Increase (reduce) expenditure and improve the economic efficiency of the hotel

Financial management governs both supply inputs and revenue generation.Before capital investment, financial management should determine the investment and allocation of funds through analysis and prediction based on market information and various financial information.The hotel always hopes to invest funds in aspects that can produce direct or indirect benefits, and the benefits are more significant.After the funds are invested, the finance department supervises and controls the use and effect of the invested funds through accounting, so as to continuously increase the hotel's revenue.At the same time, in the accounting process, the costs and expenses are controlled according to the plan, so that the expenses are compressed to a necessary and reasonable level.Financial management can promote income (reduction) expenditure, and has direct significance for hotels to improve economic efficiency.

3. Promote the improvement of hotel management level
Financial management is not to passively reflect the process of hotel economic activities, but to promote the development of business operations through decision-making and control.Finance can not only comprehensively reflect the operation of the hotel, but also reflect the situation of each department and each operation process of the hotel in a more specific way.The information reflected by finance is fast and sensitive, and the hotel can use financial information to keep abreast of the operating conditions of various departments and businesses in order to make decisions based on specific situations, and then command and control the progress of business.At the same time, through financial planning and accounting, the income and profit will reach the target, and the cost will be controlled within the plan.The key to completing the financial plan is to improve the management level of each department and adopt scientific management methods to achieve the planned goals.Hotel finance also needs to promote the improvement of management level in terms of distribution, rationally distribute the interests of departments and employees, and use scientific distribution as a management method to urge departments to strengthen scientific management on the one hand, strive for more benefits, and improve management level at the same time , improve the original records and information system, and provide a basis for scientific assignment.

The second (section) hotel cost accounting and control
[-]. Cost accounting
In order to determine the cost of the accounting object and assess its economic benefits, the hotel should carry out the cost accounting on a regular basis after the expenditure occurs, and use the correct method to summarize the various costs and expenses according to the time limit (such as month and year) to determine each accounting object. costs.

Hotel cost accounting can generally be carried out at the hotel and department levels.

Hotel cost accounting must be based on the principle of power and responsibility. All expenses that should be borne by the current period, regardless of whether the payment is paid, should be included in the current cost; Include current costs and expenses.The hotel must distinguish the boundaries between the costs and expenses of the current period and the costs and expenses of the next period, and shall not arbitrarily withhold and amortize expenses.

[-]. Cost control
The size of the hotel's cost expenses is directly related to whether the hotel can make a profit and the size of the profit.The management of costs and expenses should be strengthened, and the budget of costs and expenses should be fully controlled over the purchase, acceptance, storage, inventory, and consumption of various consumables, so that there is a budget before the formation of costs and expenses. There is control in the budget execution process, and the cost will be analyzed after formation.

Each department of the hotel should set targets for cost budgeting according to its own operating characteristics, measure and calculate the consumption amount or consumption rate indicators of various cost expenses, and decompose the indicators into various time periods (such as months) accordingly as the cost. Standards and basis for cost control.At the same time, the hotel should also decompose and implement cost management responsibilities, fully mobilize enthusiasm and initiative, and implement full cost control.During the budget execution process, the hotel should strictly control the expenditure of various costs and expenses according to the budget plan, and reduce and eliminate unreasonable expenses.Finally, according to the comparison between the actual cost and the budget target, the responsibilities are clarified and improvements are made.

[-]. Cost-quantity-profit analysis
The purpose of hotel cost-volume-profit analysis is to determine the profit and loss critical point of hotel operation (namely the breakeven point).The so-called critical point of profit and loss is the dividing point at which the hotel's operating income and operating expenses are exactly offset, and there is neither profit nor loss.For example, how many people are received and what level of income can be achieved so that there is no profit or loss; when the hotel’s income reaches a certain level, how profitable is it; how much income does the hotel need to reach the predicted profit target.

1. Several basic concepts
(1) Marginal cost.It usually refers to the direct cost in the production of a product or the variable cost (expense) in the operating cost (expense).

(2) Marginal benefits.Refers to the balance of an enterprise's operating income after deducting taxes and marginal costs.

The formula for calculating profit margin is:

Profit Margin = Operating Income - Taxes - Marginal Cost

Profit Margin = Profit Margin Operating Income × 100%
=1—variable cost expected operating income—tax rate

2. Several basic formulas
The profit and loss critical point can generally be obtained by calculation, and its formula is:
Breakthrough point income (guaranteed turnover) = total fixed cost marginal profit rate

Profit and loss critical point reception amount (guaranteed reception amount) = total fixed cost unit marginal profit
Hotel management is not just to preserve capital, but to make a profit.Add the target profit to the numerator of the break-even point formula, and you can get the calculation formula for the turnover or reception volume that should be used to achieve the target profit, namely:
Target turnover = total fixed costs + target profit margin

Target reception volume = total fixed cost + target profit unit margin
Example: A hotel reports expected operating income of 500 million yuan, fixed costs of 250 million yuan, variable costs of 150 million yuan, target profit of 125 million yuan, business tax rate of 5%, and the profit and loss critical point income and target turnover.

边际利润率＝1—150万500万×100%—5%=65%
Guaranteed turnover = 250 million 65% million = 384.62 million yuan
Target turnover = 250 million + 125 million 65% = 576.92 million yuan
Cost-quantity-benefit analysis is widely used in actual work. Although many uncertain factors in the future cannot be completely eliminated in actual work, the use of this method can reduce uncertain factors and make hotel management work have a certain degree of predictability. Initiative makes management more reasonable.

The third (section) hotel operating income

Income refers to the total inflow of economic benefits formed by an enterprise in its daily activities such as selling goods, providing labor services, and transferring asset use rights.The operating income of the hotel mainly comes from the labor service income obtained by the various business departments of the hotel in the course of operation.

[-]. Classification of operating income
According to the primary and secondary business of the enterprise, the operating income of the enterprise can be divided into main business income and other business income.The income generated by the recurring and main business of the enterprise is the main business income, and the income generated by non-recurring and concurrent business transactions is other business income.Usually, the main business income accounts for a large proportion of the enterprise's income in the income of the enterprise, which has a greater impact on the operating efficiency of the enterprise.Other business income accounts for a relatively small proportion of corporate income.

A modern hotel is a tourist reception facility that provides board and lodging as well as other services. It has many sources of income, but it mainly provides services, and there are few non-recurring businesses.It can be divided into: room revenue, catering revenue, recreational revenue, and the hotel can be divided into several items according to needs.For example: guest room income includes room fee rental income, in-room food and beverage income, laundry income, etc.; catering income can be divided by each catering sales point (such as Chinese restaurant, western restaurant, bar, coffee shop, etc.); Revenue; Merchandise revenue can be broken down by type of merchandise sold; etc.

[-]. Recycling method of operating income
The recovery of hotel operating income is nothing more than three methods of advance collection, cash collection and subsequent settlement.

1. Advance receipt
Advance collection refers to collecting all or part of the room fee and other expenses in advance before providing services to the guests, that is, the deposit.

For example, a general store will charge a part of the reservation fee to the customer after the room reservation is confirmed.For some guests (such as those with only small pieces of luggage), the hotel will also ask them to budget for the full room rate during their stay in the hotel when they check in.

2. Cash
Cash collection means that the hotel provides services and collects fees at the same time.For example, when a hotel shopping mall sells goods to guests, it will collect money from the sale of goods on the spot.For individual guests who are not staying in the hotel, when the hotel provides services to the guests in its various departments, it must also collect fees in time.

3. Subsequent settlement
Subsequent settlement means that after the store provides services to customers, it charges customers regularly or at one time for the last time.For example, between hotels and reputable travel agencies, most of them adopt this method of settlement afterwards.Generally, hotels will also adopt this kind of post-settlement method for in-house guests, and the full fee will be collected when the guest leaves the hotel, or a part of the consumed fee will be collected periodically.

[-]. Operating income control

1. One-time payment method
The hotel generally adopts a one-time checkout charging method, that is, once the guest checks into the hotel, he can spend on credit within the hotel (except for individual consumption points such as shopping malls).Hotels should establish corresponding management methods and control systems.For example, each account on the guest's general bill should be accompanied by the original attachment signed by the guest. At the same time, the maximum amount of arrears should be stipulated. Once the limit is exceeded, the guest should be urged to pay in time to avoid accumulating too much or too long due to arrears into passive.

2. Business income audit
In order to prevent abnormal behaviors such as cheating and corruption in the operation process, the hotel should establish a business revenue audit system to ensure the recovery of business revenue and safeguard the interests of the hotel.For this reason, the hotel should set up income audit posts, so that the checks can be conducted at all levels from the cashier to the night auditor and daily auditor, so as to ensure that the operating income will not be lost.

3. Control collection
The hotel should strengthen the control over each collection point, such as the management of bills.The hotel should establish a management system in which a special person is responsible for the issuance of bills, register the number of the bills issued, and review the bills one by one.

After the cashiers in each business point are on duty, they need to fill in the "Revenue Daily Report" and "Payment Form", and the hotel will check whether the received bills are consistent with the submitted forms.

4. Control Accounts Receivable
Accounts receivable refers to the credit sales revenue of the hotel that has been sold but has not yet been collected.It is a fund that is appropriated by the buyer for the provision of goods (or services) on commercial credit.The provision of commercial credit by the hotel, on the one hand, is conducive to increasing sales and expanding market share; on the other hand, it can reduce inventory, reduce inventory management costs, and reduce the possibility of inventory depreciation due to expiration.However, the hotel should strengthen control over the accounts receivable arising from the provision of commercial credit to ensure the recovery of operating income and avoid bad debt losses.

The size of the accounts receivable of the hotel usually depends on the external environment of the enterprise and the marketing policy of the enterprise itself. For the external environment of the hotel, the macroeconomic situation will affect the amount of the accounts receivable of the enterprise, such as in the economic downturn , there will often be more customers in arrears of payment.Of course, it is possible to change or adjust (adjust) the amount of accounts receivable and control accounts receivable through internal management, through changes in itself and policies, but this control often affects the reduction of hotel sales revenue.

The credit policy of the hotel includes such contents as credit term, cash discount, credit standard and collection policy.The tightness of credit directly determines the size of the company's credit sales and the amount of accounts receivable.Although the relaxation of credit policy can stimulate sales and increase income, it also increases the amount of accounts receivable and some credit management costs; while the tightening of credit can reduce accounts receivable and reduce credit management costs, but There is a corresponding reduction in income.The hotel should adopt a reasonable credit policy by analyzing the changes in income and costs after adopting the credit policy.

The hotel controls the accounts receivable through the credit policy. At the same time, it should analyze and check the recovery of the accounts receivable, investigate the tightness of the hotel's credit policy, and check the recovery and management of the accounts receivable. This assesses the work performance of the relevant departments.

Fourth (Section) Hotel Profit

[-]. The concept of profit and its composition
Hotel profit refers to the hotel's operating results during a certain accounting period, including the hotel's operating profit, total profit and net profit.

1. Operating profit
Operating profit refers to the amount of main business income minus operating business costs, main business taxes and surcharges, plus other business profits, minus operating expenses, management expenses and financial expenses, that is:

Operating profit = main business income - main business cost - main business taxes and surcharges + other business profits - operating expenses - financial expenses - management expenses

(End of this chapter)