preparing a departmental budget. why do we need to prepare a budget? to determine and clearly list...

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

arletty.jooron@cavgdsclub.co.uk

Thank You