ACCOMMODATION + HOSPITALITY
ACCOMMODATION + HOSPITALITY
- Rooms Statistics Reporting
- Detailed Daily Revenue Reports by Dept
- End of Month P&L by Department
- COS % Analysis
- Payroll % Analysis Tools
- Customised Analysis
- Cashflow Management
- Full Annual Budget Preparation
ACCOMMODATION + HOSPITALITY
- Rooms Statistics Reporting
- Detailed Daily Revenue Reports by Dept
- End of Month P&L by Department
- COS % Analysis
- Payroll % Analysis Tools
- Customised Analysis
- Cashflow Management
- Full Annual Budget Preparation
ACCOMMODATION + HOSPITALITY
DOWN TO EARTH
BUSINESS & FINANCE HUB
BAS Agent # 26217393 P: 0467 527 686 E: management@downtoearthhub.com.au, Mission Beach, QLD
Financial/Cashflow Management
Additional to standard business accounting requirements like bank reconciliations, profit & loss statements, balance sheets and BAS preparation, construction requires far more detailed financial management. Due to the volume of work being done, you need to scrutinise your expenditure vs budget and be able to keep your finger on the pulse regularly, knowing that the information you are looking at is accurate and current. This is no mean feat and requires constant analysis.
Do you know how to get an accurate financial snapshot of your current job financials? Do you keep track of what you have purchased?
Points of Power
Estimate
Quote
Purchase
+
Invoiced
=
Budget
vs
Actual
=
Variance
Profit or Loss
Points of Power
Your points of power are at estimating and purchasing. A lot of people do financial evaluations once the invoices are all in the system and often they don't know for sure whether they have all been received. You need to feel confident about what has been estimated and purchased, rather than just hoping another invoice doesn't show up in the post and take you from a proft to a significant loss.
Financial Integrity
It is one thing to have your job budget vs actual report in place but then you also have to ensure at any given moment that the information you are looking at has integrity. If you look at your report this afternoon and see a $27,000 profit on the overall job, have you taken into account all the oustanding purchases, or is a bill for $32,000 going to come in tomorrow morning that completely changes your position?
Also, do you have a system in place to help you make a definitive assessment when you are half way through the job? Or do you have to wait until you've completed the project to know whether you met your budget. Have you checked all your costs have been coded to your job and cost codes accurately, Have your variations been coded accurately? You need some way to make sure the figures you are looking at are telling you the truth, otherwise it's just a guessing game.
Cashflow is King
Business can get very tough if the money coming in isn't covering the money going out. If you aren't prepared, even if you are making good money, you could still find yourself half way through a job and tens of thousands of dollars down from a lack of planning. Then, add another 5-10 jobs and you are into the hundreds of thousands. Do you ensure your stage payments are in line with your estimate or do you just base it on the standard percentage breakdown? Do you know at any given moment how much money you are carrying on a job? Do you have a system that helps you to manage your cashflow? Here i go again with my 'this is vital' line... but seriously, vital.
Capturing the flow