Preparing a Departmental Budget

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

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Different Types of Budgets Zero-based budgeting Incremental budgeting

Preparing a Budget for Housekeeping

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Capital Budget Operating Budget

Fixed Cost Variable Cost Operating Equipment

Fixed Costs and Variable Costs

Fixed costA cost or expense that will not change as a result of changes in revenue or level of business

Variable costA 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 JooronExecutive Housekeeper

Cavalry & Guards Club

arletty.jooron@cavgdsclub.co.uk

Thank You