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All hotels need a person to work as the financial manager of the hotel, there can be a danger along with a liability if your General Manager must be the individual that handles all facets with the operation.
Controllers are usually usually the one to blame for short and long term planning, and also daily operations from the accounting department. In larger organizations, s/he interacts with a few regularity with the brand or management company Vice President(s) and Corporate Controller. They may take care of accounting transactions or control practices not specifically addressed within the acceptable company accounting policies and procedures manual or which requires interpretation.
In smaller hotels, the role of Hotel Controller might be handled with a 3rd party who may or may not be at the physical building every day. Many ownership groups utilize a cluster approach on this function, and also have only simple financial activities with the hotel level wonderful reconciliations and filings done by the owner's office or an accountant. Management companies often successfully make use of this approach.
With that being an introduction, these 'Bakers Dozen' of Strategies for Hotel Controllers can be viewed as in both approach.
1. Take the lead on establishing and administering all financial systems and internal controls. This includes an approved and handle arrange for overall financial constraints for charge of operations. In the case of high volume food and beverage, gaming, retail or any other revenue centers, this really is important to earnings management. Most hotels use approved industry standard accounting systems and formats.
2. Create the guidelines and expectations to the preparation and updates of most operational budgets, forecasts, operating results, financial statements. While the controller must not physically prepare all documents, s/he must provide guidance, forms and overall direction. This includes profit projections and planning, sales forecasts, expense budgets, capital requirement/needs, cost standards along with the required approvals for implementing the decided upon plans.
3. Identify the annual hotel's capital plan and establish time lines and protocols for implementation. Capital needs are identified through many sources, including planned renovations, alterations in competition, market variables, brand requirements, legal obligations and ownership preferences. It is the ultimate responsibility with the hotel controller to estimate returns and offer recommendations to ownership and senior management.
4. Implement firm procedures for that preparation of operational statements returns in compliance with government regulations, company, franchise and ownership requirements. There are many entities requiring detailed and consistent reporting.
5. Set up and administer all government reporting and tax filing activities to assure accurate, timely info is provided in compliance with laws and regulations. This includes local, state/provincial and federal agencies.
6. Formulate and manage local accounting policies that coordinate with ownership's or brand systems and procedures. We all recognize that data and reports might be stated in creative ways plus it falls towards the controller to maintain comparisons of performance to budgets, forecasts and updates accurate and consistent. Clear and concise recaps with the fiscal reports that interpret operational link between operations to any or all degrees of management and ownership (where applicable) are essential
7. Operate just like you were a financial consultant on your hotel(s). Consultants find out to be sure time sensitive reports and knowledge are given to optimize revenues and profits. Done in a proactive and ongoing way, this will greatly assist operations.
8. Monitor compliance with hotel and accounting policies and procedures, legal requirements and contractual obligations . These could include obligations within management agreement or brand contracts. A system of internal controls, auditing and security procedures ought to be available to make sure disparities or variations are brought to the attention from the General Manager and/or appropriate ownership or management representative to defend the hotel's assets.
9. Manage the accounting department and also other areas as appropriate. Some hotel controllers oversee Security/Safety staffs and some are to blame for Human Resources. This is a local decision though the goal is to maximise resources and/or effectiveness, not to save a few bucks through the elimination of a management position.
10. Supervise set up . and repair off accounting personal computers and equipment to secure optimum performance. The Controller should also be the main one to typically approve all contracts, with all the co-authorization of some other senior manager.
11. Maintain a fiduciary accountability to the company and management. Many large organizations have Controllers reporting towards the hotel general manager, however with a dotted line to a corporate officer and other responsible person. This is a system of constraints.
12. As a member in the hotel executive team, share the professional expectations made available to you ownership and/or management clearly with all of members in the staff. Newcomers to the industry sometimes imagine huge profits whenever they compare their hourly wage using the rooms' rates paid by guests. Those of us who have been within the industry in excess of just a few years recognize that profits and losses will end up in cycles, and that you will need to share the realities with the expense of working in any respect levels. All staff should comprehend the total costs of ownership, including support staff for example security, engineering and purchases, franchise or royalty fees, management company fees, the concepts of debt service and more. Make those expectations understood, explain the worth and rationale to everyone staff and be certain these expectations might be measured fairly.
13. Increase the commitment to training whenever and whenever we can throughout the resort. Many controllers inside past functioned in addition to the operating staff. The successful controller with the future will maintain a required equilibrium while using departments they could possibly be monitoring, however they will also learn how to:
? More regularly interact using the sales and front office management to obtain accurate forecast of short and long term trends
? Better anticipate capital needs and also the ROI necessary to justify them
? Assist the total team by better communication with ownership, management, brand offices and government departments as appropriate
