For any business, solid financial management is a core function.
Without this it’s very easy to lose perspective, accountability and the ability to react to change. Whether a new enterprise or a well-established hotel there are many benefits to investing in a financial management system that simplifies and centralises all the key tasks.
The hospitality industry is notoriously changeable and the ability to react and respond to change as it happens is one of the single most important factors to survival. The advantage to using a proven financial management system is the insight that is available. With an accurate overview of the business, combined with an appreciation of the movements in the market, future change can be prepared and planned for.
A financial management system enables bespoke reports to be created that provide data as required, whether that’s a high level overview for management or a customised report that drills down into business goals. Simple financial reporting gives everyone making decisions in the business the ability to be informed and drives a more joined up decision making process. Plus, the right system means that reporting is live – real time – as opposed to weeks or months out of date.
Working with a financial management solution makes budgeting simpler, more efficient and (importantly) more accurate. Budgets can be created for defined time periods or departments, depending on individual needs. Budgeting is a big issue for many hotels, particularly during periods of growth, and switching to a system that makes this easy can open many doors.
The right infrastructure enables seamless integration and the import and export of a wide range of data to and from other business systems, such as your hotel management solution.
Financial tracking and analysis
Hotel finances have some common themes – payroll, energy, property maintenance etc – but there is also a big difference between one business and the next. That’s where automated financial tracking makes it much simpler to capture and track expenses – no matter how unique – as well as revenue. The analysis stage is also crucial as it’s at this point there is the opportunity to identify how expenses have performed against the budget. A financial management system not only does the analysis automatically but also makes it much easier to see where expectations have been exceeded or inconsistencies exist that could threaten the survival of the business if not dealt with.
Creating an auditable environment
The combination of good accounting practices and a strong financial management system will create an environment in which it’s simple to identify, track and trace any differences between expectations and reality. This will enable more accountability for those in management positions when it comes to the financial results of the business.
No matter how good the concept, how flawless the service or how high profile the business, without sound financials at the heart of it growth can be incredibly difficult. With the speed and accuracy of a trusted financial management system it’s very simple to see where the business is at any given moment and to spot opportunities and advantages as they arise.
If you’d like to know more about how SunSystems financial management could help your business get in touch.