In the journey of being a hotel business owner, the question pops up commonly in your mind – Whether you’re making or losing money.
Let’s crack the code & clear off that air!
The best way to measure your hotel’s Financial Health and long-term viability is done by Profit & Loss check with the means of a reliable Hotel Accounting Software.
It’s the best indicator and golden key measurement that depicts your hotel’s bottom line.
However, evaluating the profit & loss statement manually is not an easy go, it’s the financial metric to be done so accurate. That’s possible when you opt for game changing hotel accounting services.
Reporting characteristic in your monitoring should possesses specific time period tracking, for instance, monthly, quarterly, or annually.
The equation for PROFITABILITY is REVENUE minus EXPENSES
For sure, you knew this equation, but how you calculate it does matter as discussed above.
Before we dwell into the subject, let us first understand about Profit & Loss Statement or Report in Hotel Business.
Profit And Loss Financial Statement
P & L or Income & Expense Statement is an imperative thing that gives hoteliers a control on every detail of their business’s finances, both on the cost and revenue side. Even on profits!
If you own a hotel chain, then it gets even deeper! Corporation wise Income, COGS (Cost of Goods Sold), Expenses, and Net Profit has to be seen as a P & L report.
Best Hotel Accounting Software, when precisely designed for the Hospitality Industry helps you create this financial statement with drilldown details.
Giving you a summary of revenue, cost and expenses incurred in the chart of accounts for a specified period of time, usually a fiscal quarter or a year.
The purpose of utilizing this report is to assess you with the ability to generate profits by increasing revenues and reducing costs within your hotels.
How often to access P & L Statement?
Although, the P & L analysis frequency is completely at your discretion, but what’s the best practice is recommended to be at least a month-on-month review. If possible daily or weekly…
That’s how you can experience financial success, by avoiding your business moving off beyond the control.
Also, to remember the P & L is linked with two financial statements – Balance Sheet and Cash Flow, you got to keep an eye on them to tighten & rein on the cost control.
Picking the best Hotel Accounting Software?
As you’re aware there are plethora of Hotel Bookkeeping or Back Office Accounting Software options in the market – You need a tailored solution!
Acquired an extensive experience into Hospitality Industry, Nimble Property is a best-in-class existence, hand crafted by Hoteliers themselves.
Experts of Nimble Property created exclusive reports customized & tailored for both, Limited to Full-service Hotels, giving ‘em corporation-wise insights on net profits, Incomes, COGS and Expenses based on the available information.
You can view the report by selecting specific options like corporation, view transactions range and period (From date & to date).
Without the headache of getting lost in spreadsheets, you’ll get a complete data on your hotel’s Profit & Loss in a timely manner at a glance.
It lets you know how much you are spending and how profitable you are. Also, the insightful report at Nimble helps you in controlling the upcoming operational expenses, when there’s a downfall situation of placements.
Based on it, you can come with cost cutting or adjustment strategies for better outcome. Also, you’ll get a better understanding of your property’s financial position!
So, you stay alert and control your expenses before you experience any pitfalls, ultimately boosting up your hotel’s net margin.
Profit and Loss Report, also called as Income Statement is crafted really well in Nimble Property.
Just few click away to,
- View the single or multiple properties’ total Income and Expenses incurred during a selected specific period of time.
- Summarize revenue, costs and expenses for multiple hotels selected on a consolidated report.
- Share the report amongst your investors and creditors to assess the past financial performance & predict future performance.
- Generate future cash flows through the combined P &L Account.
- Precisely understand how your each department is performing.
What’s more with Nimble?
Tailor-made Hotel Accounting software – Nimble Property provides an exceptional support in handling a host of accounting challenges with ease which involve in Daily Sales Automation, Budget & Forecasting, Bill Import & Approval, Multi-Property Management, Bank Reconciliation, STR & GSS Review, AR & AP and 60+ Hotel Specific Reports for better decision making.
LEVERAGE the Technology to EMPOWER your Hotel Business TODAY!
In order to achieve prosperous financial health, you should invest in innovation and intelligence driven Hospitality Specific Software and Hotel Accounting Services.
As it lets you generate a well-structured Profit & Loss statements, as or when required for a specified time frame.
Without any complication or juggling between spreadsheets, you can understand your overall hotel performance and operability.
Concluding it, Profile & Loss Metric is a Step to your Success!
A final word
Periodic Profit & Loss reports monitoring is really essential for your success of hotel.
They mainly highlight from where exactly your profits are flowing in and also where your expenses are going.
Close inspection of your departmental wise performance can be provided with the P & L statements.
By which, your hotel managers can seamlessly scrutinize the performance, while comparing with departmental and overall budgets on weekly, monthly and quarterly or yearly basis.
Insights on financial performance in terms of strengths and weaknesses can be find out, so you and your staff can act on them accordingly.
By making improvements, including cutting down your hotel costs, enhance under-performing areas and invest in new revenue streams for immense growth.
Hence, it’s a key tool if you are striving to make data-driven decisions on revenue and expenses at operational level