Budget
INDEX
2
Budget
We have to control the tactics through the budget.
We have to put in the budget an estimate about how much money we want to spend on our tactics to obtain more percentage of “occupancy, presence on social networks…” Planning and budgeting are interrelated and are what make an operational plan possible. For the existence of the planning is necessary for being included in the budget. If we do not put the money that we are going to allocate to obtain resources, we can run out of money for those resources. Budgets provide the basis for continuous standards of control throughout the year of operations. If the actual performance does not correspond strictly to what is planned and budgeted, it causes a corrective action to be taken Examples: Allocate a budget to carry out actions that lead us to increase presence in social networks (a concrete percentage) To carry out tactics that help us increasing the occupation (a percentage)
http://finanzasypresupuestosmalvacias.blogspot.com.es/2013/03/relacion-entre-laplanificacion-y-el.html
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Budget
In business, budget can be defined as a plan for an organization's outgoing expenses and incoming revenues for a specific time period.
1.
Planning
operations
that
ensure
the
they
can
propose
various
quantitative
companies’ strategic objectives realization:
indicators.
Budgeting process stimulates managers to
4.
predict
their
discipline according to the business plan:
appearance and thereby avoid making hasty
Careful drafting of budgets ensures the
decisions in the event of certain undesirable
optimum standard to compare undertaken
situations in the future.
activity achievements, to determine deviations
all
the
problems
before
Control
of
current
activity,
ensuring
and to take measures to eliminate them. 2. Coordinating various activities of different types of subdivisions. Coordination of each
5. Evaluation of plans fulfillment by each
employee
Each
responsibility center and their managers:
subdivision of an economic entity has its own
Management performance can be appreciated
objectives and this can lead to situations in
by comparing the results with those expected
which these goals are contradictory in relation
to be achieved.
and
groups
interests:
to other responsibility centers. 6. Training managers and other employees 3. Stimulation of managers from all business
from financial services of a company: Budgets
levels to achieve predetermined goals of each
are considered to be highly beneficial to
responsibility center: it manifests that the
companies.
responsibility is centered in the managers, that
http://www.accountantnextdoor.com/budgeting-what-are-the-functions-of-budgeting/
4
Budget
http://www.fool.com/knowledge-center/5-types-of-budgets-for-businesses.aspx
5
Budget
Fixed Expenses
Variable Expenses
Once-off Expenses
Fixed Income
Variable Income
6
Budget
Element 1:
These are the
These
expenses you know your company will
aren't very important expenses and
incur every month, include expenses
often you can choose when you incur
such as rent, insurance and salaries. It
them.
have to account for expenses and it can
cover them without fail.
Element 3:
Element 2:
Element 4:
Fixed income
is the guaranteed monthly amounts you These
get from regular clients. Because you
expenses change from month to month
know you'll get this money each month,
depending on your company's position
it's more reliable.
and rate of sales. If the company sells
Element 5:
Variable
less, the expenses, such as telephone
income comes from once-off purchases
costs, could decrease because of fewer
from new clients. These are people who
sales calls. Just because these vary from
don't have contracts with you so you
month to month doesn't mean they're
might never do business with them
not important so ensure you can account
again. If your budget contains these five
for them each month.
specific elements, it will be effective every time.
7
Budget
JANUARY INCOME VARIANCE VARIANCE X PRICE ROOMS INCOMES X PRICE X PRICE FORECAST ROOMS INCOME 1.455,54 109.165,50 75,00 1.977,11 148.283,14 75,00 521,57 39.117,64 75,00 RESTAURANT FORECAST 323,40 12.300,00 38,03 315,32 11.992,50 38,03 -8,09 -307,50 38,03 BAR FORECAST 1.904,00 6.853,00 3,60 3.079,04 11.082,28 3,60 1.175,04 4.229,28 3,60 BANQUETTES FORECAST 118,80 13.068,00 110,00 119,79 13.176,90 110,00 0,99 108,90 110,00 OTHER SALES FORECAST 2.911,08 8.733,24 3,00 2.304,61 6.913,82 3,00 -606,48 -1.819,43 3,00 ROOMS FORECAST
VARIABLE COSTS ROOMS FORECAST REAL 28,00% 30.566,34 41.519,28 RESTAURANT 30,00% 3.690,00 3.597,75 BAR 25,00% 1.713,25 2.770,57 BANQUETTE 45,00% 5.880,60 5.929,61 OTHER SALES 65,00% 5.676,61 4.493,98 FEBRUARY ROOMS FORECAST 1.212,95 RESTAURANT FORECAST 269,50 BAR FORECAST 816,00 BANQUETTES FORECAST 0,00 OTHER SALES FORECAST 2.425,90
INCOME FORECAST 90.971,25
10.250,00 2.937,00
0,00
7.277,70
X PRICE 75,00 2.195,44 164.657,96 75,00
VARIANCE ROOMS 982,49
73.686,71
X PRICE 75,00
38,03 350,89
81,39
3.095,50
38,03
3,60
1.022,72
3.681,04
3,60
110,00
0,00
0,00
110,00
3,00
-548,25
-1.644,76
3,00
X PRICE ROOMS INCOMES
13.345,50 38,03
3,60 1.838,72 6.618,04
110,00 0,00
0,00
3,00 1.877,65 5.632,94
VARIANCE
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Budget
VARIABLE COSTS ROOMS
FORECAST 28,00%
REAL 25.471,95 46.104,23
30,00%
3.075,00
4.003,65
25,00%
734,25
1.654,51
45,00%
0,00
0,00
65,00%
4.730,51
3.661,41
RESTAURANT BAR BANQUETTE OTHER SALES
TYPES
TOTAL INCOMES 2.485.679,00 €
ROOMS ANNUAL ANNUAL ROOM FORECAST 24.259,00 € 1.819.425,00 € RESTAURANT ANNUAL 5.390,00 € BAR ANNUAL
ANNUAL RESTAURANT FORECAST 205.000,00 €
ANNUAL BAR FORECAST 27.200,00 € 97.900,00 €
BANQUETTE ANNUAL ANNUAL BANQUETTE FORECAST 1.980,00 € 217.800,00 € OTHER SALES ANNUAL ANNUAL OTHER SALES FORECAST 48.518,00 € 145.554,00 €
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Budget
TYPES
TOTAL INCOMES
2.269.420,00 € ROOMS ANNUAL INCOMES ROOMS 22.259,00 € 1.669.425,00 € RESTAURANT ANNUAL INCOMES RESTAURANT 4.890,00 € 185.000,00 € BAR ANNUAL INCOMES BAR 21.200,00 € 85.900,00 € BANQUETTES ANNUAL INCOMES BANQUETTES 1.980,00 € 217.800,00 € OTHER SALES ANNUAL INCOMES OTHER SALES 44.518,00 € 111.295,00 €
TOTAL FORECAST COST VARIABLE 788.034,10 €
TOTAL FORECAST VARIABLE COSTS 671.217,00 €
TOTAL FORECAST FIXED COST
TOTAL FORECAST FIXED COSTS 1.260.229,00 €
1.309.149,00 €
TOTAL VARIABLE COSTS AND FIXED COSTS FORECAST A
TOTAL VARIABLE COSTS AND FIXED COSTS FORECAST B
2.097.183,10 €
1.931.446,00 €
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Budget
1. It helps to adjust the variable costs, because if we have more income than the one we were expecting, we´ll have to modify the variable costs of that department. 2. It allows you to have the document for seeing the difference between months of the intake and determine which ones we need to adjust 3. It shows the financial situation reality and it brings the opportunity of doing adjustments when it is necessary before having fails or disregarding its financial situation. 4. It reduces the risk of breaching the financial obligations. 5. It controls the debts: That obligates you to be organized because it avoids the delay of the payment of the debts. 6. It helps you to earn money. 7. it allows you to plan the payment of the accounts and the achievement of the goals that the business proposes.
In each Hotel´s department, the most suitable is a person that manages the budget. The personnel in charge of this function will be more motivated in the achievement of goals and they will feel more committed to the development of the business. That arrangement will be prosperous for the Hotel because it will help it find the balance between reasonable gratification, reasonable costs and reasonable expenses.
11
Budget
Carrying out a checkpoint in the company Using control methods is to verify that everything is developed as was budgeted.
means setting specific times every x time to study the economic situation of the company at
The budget made in the previous points is the
a given time, for example, once a month. This
result of the planning expressed in numerical
implies a full knowledge of the state of the
terms, that is, in quantification mode. Making
company and the possibility to take measures in
this document, in addition to establishing
time, if this were necessary. Other control
checkpoint, is one of the most effective
methods for the company could be statistics,
documents available to the company.
break even analysis or audits.
12
Budget
13
Budget
We think that the budget has been done correctly, but we have been able to give certain unexpected situations, which are beyond our control, which can make even budgets lose their usefulness. Next we will try to explain the variations found in the budgeted in the months of January and February, in addition to establishing corrective measures to solve the problems that have occurred, which are detrimental to the quality of the service offered.
In our first month we have noticed that there have been losses in restaurant and other outlets, however, in February, the bar selling point has taken an unexpected rise, more than compensating for the losses of the previous month.
We think it would be more appropriate to apply corrective measures to the "Other" point, since in the two months of the year the losses amount to â‚Ź 3,464.19, the question is that we do not know exactly where in that point of Sale we have the problem, so trying to put corrective measures without knowing exactly which of the parts that compose it is flaky, it would be like trying to medicate a patient without knowing his illness.
14
Budget In the other points of sale, we have had higher than expected revenues, the most outstanding are in "Rooms" and "Bar", so we will have to apply corrective measures that allow us to maintain the quality that has allowed this radical increase of Guests at our hotel, as indicated above. We will increase the staff in floors and in reception, while in bar, we will have to increase the number of products that we ask our suppliers. In the restaurant we will take the same measures as in the bar, we will increase the number of products, but be careful not to overdo it, since in January we had losses and we do not know what can happen in the coming months.
In the rest, however, we will have to increase them, starting with the personnel that we will need in apartments, since, due to the greater occupancy, we will also need a larger number of floor managers to set the rooms apart from reinforcing the reception department, Since with a greater influx of people, we will need more people who can deal with the greater amount of work.
https://prezi.com/vrlaa-0pa60t/metodos-para-el-control-presupuestal/
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Budget
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