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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.

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Presentation on theme: "Preparing a Departmental Budget. Why Do We Need to Prepare a Budget?  To determine and clearly list our objectives  To provide us with a."— Presentation transcript:

1 Preparing a Departmental Budget

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8 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

9 House Keeping…. “…. Is The Backbone Of An Organization.”

10 Preparing a Budget for Housekeeping 10  Different Types of Budgets  Zero-based budgeting  Incremental budgeting

11 Preparing a Budget for Housekeeping 11  Capital Budget  Operating Budget  Fixed Cost  Variable Cost  Operating Equipment

12 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

13 Fixed Costs and Variable Costs Payroll  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.

14 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?

15 The Impact of Inventory on Cash The cost of:  The item  Storing the item  Money

16 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!

17 More Information Templates of the Slides are available from the UK HouseKeepers Association. Contact: Arletty Jooron Executive Housekeeper Cavalry & Guards Club

18 Thank You


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