Hospitality Industry Cost Control
Is Cost Control Important?
The simple answer is yes, cost control is the process that makes your business profitable, it allows you to see the relationship between your costs and your selling prices and profit.
Cost Control includes procedures for:
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Purchasing
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Financial Controls
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Stock Control (see our stock control page)
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Recipe Costing and Production (see our recipe costings page)
Purchasing
Poor cash flow is one of the most common reason for why companies fail, one way to manage your cash flow is by tracking your purchases. By tracking your purchases you improve you cost control, see how much you are spending and what items you have purchased.
By tracking your expenses you can see whether you are over or under your purchasing budget for the month. Armed with this knowledge you will be able to identify bad spending habits and implement better ones.
Financial Controls
Forecasting:
Forecasting allows business to anticipate demand and optimise availability and pricing, in order to achieve the best possible financial results. it involves analysing your performance data so you can predict demand and consumer behaviour, which in turn allows you to make sensible decisions regarding pricing and distribution in order to maximise your profits.
In order for forecasting to work a business needs a way of forecasting demand and customer spending habits i.e. past bookings data.
Budgeting:
Budgeting allows business to compare planned values against the actual figures, allowing business to take action if costs become to high ensuring the business is profitable. It also enables the management team ot operate the business more effectively. Hospitality business require careful expense management particularly in relation to labour cost
Profit and Loss Statement
The profit and loss statement provides you with an analysis of your revenue, cost and profit performance. They are typically carried out monthly, quarterly or on an annual basis.
Profit and loss statements:
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Highlight Capital Flows
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Understand how each departments are performing
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Provide insights into financial performace weaknesses and strengths
Our Bundles and Services
Purchasing Bundle
Our purchasing bundle allows you to track your purchases in real time.
it includes 4 templates:
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Purchasing Summary
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Supplier Price List
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Purchases by Product
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Supplier input
These templates are linked do tha the bundle does all the hard work collating your purchases by supplier and product allowing you to better control your expenses
Financial Bundle
Coming Soon
Services
We can you to help track your purchases, by data populating and maintain this bundle for you.