Expense Controls
Labor
Review schedules and staffing levels compared to business demands, and make adjustments and improvements to reduce labor costs where possible.
Energy Consumption
Review conservation efforts and execute procedures and improvements to reduce consumption.
Purchasing
Evaluate the ordering of operating supplies, shop vendors for competitive pricing, onboard the hotel into the company and franchisor procurement programs, and enact an effective process for reconciling and approving invoices.
Housekeeping
Review labor cost management, conduct room inspections, analyze the use of cleaning chemicals, evaluate choice of linen and terry, and determine par inventory levels.
Preventative Maintenance
Evaluate PM programs for all HVAC, refrigeration, kitchen, and life safety equipment (extinguishers, sprinklers, alarms, etc.) in order to implement upgrades as needed.
Room Care Program
Review existing Room Care program, if any, to recommend program improvements that assure regularity of room care and condition quality.
Property
Evaluate the quality of the current groundskeeping, including all exterior/interior signage and lighting, to recommend curb appeal improvements.
Financial Reporting and Budgeting
Hospitality Investment Services utilizes a standard Chart of Accounts as the primary systemsused to record the hotel’s financials and produce accurate reporting. Frazee, Ivy, Davis, PLC, Memphis, TN is engaged to provide professional CPA and accounting services along with the property’s Management Team. Each onsite manager works directly with members of the corporate team and independent accounting firm to ensure that the following are diligently performed:
· Weekly account payables
· Petty cash reimbursements
· Payroll processing
· Monthly Profit & Loss (P&L) Statement and Balance Sheet production
· Capital expenditure budget
· Cash flow statement
· Asset management and depreciation schedules
· Tax return preparation
Once month-end procedures, including bank reconciliations, are complete, the final balance sheet and P&L are issued from the independent CPA. This process assures appropriate checks-and-balances with daily income and deposit verifications.
On a daily and weekly basis, the management team reviews the month-to-date results to detect any potential variances as early as possible and make operational adjustments as needed.
The monthly reporting provided to the owner(s) includes the balance sheet, P&L, and updated cash flow analysis. Quarterly, the Hospitality Investment Services leadership team provides a "package" that contains both qualitative and quantitative analysis of data about the hotel’s operating results.
Hotel Accounting Procedures
Daily Income Verification & Reconciliation
Review "Daily Stats" information that is provided by the property
Review our team's "Daily Operating Report" (DOR) submitted by the property
Daily Income Verification & Reconciliation
Review our team's "Daily Operating Report" (DOR) submittedby the property
Verify that cash deposits and credit card transactions have been processed and reconciled
Roll daily report into the General Ledger
On a weekly basis, cash position reports and accounts payable reports are distributed and reviewed
Monthly Financial Reporting
Bank reconciliations
Account analysis: review and make required adjustments
Evaluate receivable balances for proper and accurate billing and collection
Issue monthly Balance Sheet and Statement of Income and Expenses
Quarterly, financial statements are packaged with comprehensive management reports and distributed to clients
Weekly Check Runs
Receive invoices both electronically and by mail from the property for payment
Receive weekly packet from the property with invoices
Process checks for payment and mailing
Petty Cash Reimbursements
Receive check copies and receipts for Petty Cash checks from the property for weekly reimbursements.
Match receipts to checks and evaluate the validity of the expense(s)
Payroll Processing
Process bi-weekly payroll via time clock entry at the property
Deliver direct deposit payments to the employees with detailed payroll reports
Integrate payroll entries with month-end accruals
Report quarterly and year-end payroll taxes
Miscellaneous
Record the information gathered for annual tax return preparation
Record retention of all accounting related transactions
Track information and preparation of 1099s
Record and track assets, and provide depreciation schedules
Produce annual tax forms (i.e. K1s)