Hotel Budget & Cost Control

Purpose

To control costs against the approved budget and act on variances early.

Scope

Applies to all departments and their operating costs.

Responsibility

Finance Manager reports; HODs own their budgets; General Manager reviews.

Detailed procedure

1. Issue the approved budget to every Head of Department.
2. Record actual costs in the accounts each month.
3. Compare actual results with the budget and calculate variances.
4. Ask HODs to explain variances above the agreed threshold.
5. Agree corrective actions and owners at the monthly review meeting.
6. Track the actions to completion and report to the General Manager.

Standards and guidelines

• Variance reports are issued by the fifth working day.
• Purchases above budget need approval.
• Actions have an owner and a deadline.

Required records and documentation

• Approved budget
• Monthly variance report
• Action tracker

Related images

Document control