You are on page 1of 62

Click to edit Master subtitle style

7/24/12

The FINANCE DEPARTMENT

Click to edit Master subtitle style

................is the backbone of 7/24/12 hotel operations.

It handles the inflow and outflow of funds and records all transactions.

Click to edit Master subtitle style

Its broad functions are to safeguard the interests of the company (owners) and the cash. 7/24/12

Organizational Chart of the Finance Department


PRESIDENT

FINANCIAL CONTROLLER

CHIEF ACCONTANT

GENERAL CASHIER

PURCHASING MANGER

CORPORATE AUDITOR

Click to edit Master subtitle style


F&B CA INCM ADTR PAY MSTR FO CASH F&B CASH PURC OFCR PROP CSTD SR AUDIT
NITE AUDIT F&B AUDIT

ACNT RCVB

ACNT PAY

7/24/12

STRM CLRK

SHIF T ADTR

JR ADTR

AUD ASST

He/She is a key department head and a member of both the Management team and Executive Committee of a hotel. The Financial Controller has administrative and functional responsibilities geared towards helping the hotel achieve its business plan objectives in Rooms and F&B, while maintaining internal controls and accounting procedures at a high level. Click to edit Master subtitle style

The Financial Controller

7/24/12

Financial Controllers administrative responsibilities are to:


1. 2. 3.

4.

5.

Provide management with accounting information. Coordinate the preparation of hotels annual business plan. Provide budget information, which helps determine operational targets and decisions. Act as a financial consultant and assist hotel management with the proper computation and periodic forecasts. Initiative investigations in all aspects of hotel operations in the interest of maximizing profits and improving internal control. Click to edit Master subtitle style

7/24/12

Financial Controllers administrative responsibilities are to:


6. 7.

8.

9.

10.

Analyze hotel performance versus budget/ forecast and give counsel to management. Monitor operational and capital expenditures in conjunction with approved budget. Monitor hotels insurance policies and ensures that the required coverage's are in effect. Monitor hotels necessary licences and renewals in accordance with local laws. Click to edit Master subtitle style Review and recommend all legal contracts and attend to all legal matters in the hotels operations.

7/24/12

Accounting Department
The Accounting Department records and maintain in safekeeping the documents evidencing all transactions of the hotel which affect its assets, liabilities and financial position.
7/24/12

Accounting Department The department uses

7/24/12

standard accounting practice and the nomenclature prescribed by the Hotel and Restaurant Association of the Philippines (HRAP), the Department of Tourism (DOT) and the Bureau of Internal Revenue (BIR). It maintains the proper journals, ledgers and other books of account and records of the

Accounting Department

From these records, the department prepares the balance sheet and the profit and loss statements. It also generates a report on the hotels cash position and other reports that reflect hotel operations and its financial situation.

With the assistance of the profit and 7/24/12 cost centers of the hotel, the

The Accounting Staff Chief


The Chief Accountant should be a graduate of Accounting, preferably a CPA with a least five years experience in operations accounting and financial accounting. Some experience in auditing would be ideal.

Accountant

7/24/12

For operational accounting, he or she must know the ins and outs of transactions involving day-to-day operations of a hotel. He or she should be able to follow each transaction from start to finish, and must keep accurate records of each step transaction.
7/24/12

For auditing, he or she must have a working knowledge of hotel operations and a thorough grounding in financial documentation to be able to check and verify the figures.
7/24/12

While a Chief Financial Controller has to be able to see the big picture in order to set directions for the Accounting Department, the Chief Accountant that must be very keen on details. It must be second nature for Chief Accountant to check figures. He or she must be able to check the small items on invoices, should know when to

7/24/12

Income Auditor
The Income Auditor audits all invoices for the day and determines whether the charges to the customers were correct and whether all payments were posted correctly and properly Click to edit Master subtitle style recorder. The Income Auditor looks into room billings and F&B billings, paying particular attention to high folio balances.

7/24/12

He or she also checks whether there were any deviations from standard policies and procedures and reports any discrepancies in room rates and room sold to the Chief Accountant or Financial Controller.
Additionally, the Income Auditor verifies the accuracy, propriety and completeness of the reports produced by the Micros Fidelio Click to edit Master subtitle style System before these are forwarded to the Back Office.

7/24/12

Account Payable Clerk


The Account Payable Clerks ensures proper control of all payments transactions and maintains ledgers for accounts payable trade and other related liabilities. He or she is in charge of preparing payment checks and releasing the checks to the suppliers. He or she

7/24/12

Accounts Receivable Clerks


The Accounts Receivable Clerks is in charge of preparing accounts receivables for billing, follow up collections, prepares the aging of accounts receivable, process credit lines and may act as the hotels representative in credit meetings. He or she

7/24/12

Paymaster
The Paymaster handles timekeeping, payroll, withholding taxes, SSS and Pag-ibig deductions and timely submission of all reporting requirements to government agencies. The Paymaster reports to the Chief Accountant

7/24/12

F&B Chief Accountant


Because F&B operations have a faster turnover than the Rooms Division, some hotels have separate accounting units for their F&B activities. The F&B Chief Accountant reports to Chief

7/24/12

Internal Control
The Accounting Department implements internal controls to put a lid on costs to help ensure the profitability of the hotel. Thus, everything that goes in and out of the hotel has to accounted for.

7/24/12

CASH DEPARTMENT
The Cash Department handles all cash disbursements and all transactions involving payments at the Front Desk, the F&B Department and other revenue outlets of the hotel. These Transactions include receiving guests payments on their accounts, changing foreign currency to pesos, making change for large dominations, making cash 7/24/12 disbursement against petty cash

The department also updates the bill of each guest with signing privileges. It maintains up-to-date records of the accountabilities of each hotel, restaurant and bar guest.
7/24/12

7/24/12

Thus, the department has responsibility of recording by means of Micros Fidelio System the cash receipts and receivables from operations of the hotel . In maintaining an up-to-date Folio, the department relies on information from the Front Desk, Housekeeping and the F&B Department of charges incurred by the guest. The Cash Department also checks

Cash Department Staff


General Cashier The General Cashier is responsible for cash funds, petty cash disbursement, Cashiers remittances and collections. He or she reports to President and Financial Controller.
7/24/12

Front Office Cashier The Front Office Cashier deals with all manner of payments and foreign exchange transactions at the Front Desk. He or she also updates all guest charges and prepares necessary daily reports.

7/24/12

F&B Cashier Handles all transactions in the F&B outlet to which he or she is assigned

7/24/12

Purchasing Department
The Purchasing Department procures the supply items, equipment and services required for the efficient operations of the hotel. In carrying out its procurement functions, the department endeavors to make purchases of the best quality, of the right quantity, at the right time and the right price.
7/24/12

7/24/12

In its inventory control function, the department maintains such policies and procedures that ensure the proper receipts, storage, issuances and record keeping of supply items kept in stock. Between these two functions, the department oversees the process involved from the time an item is requested to the time it is ultimately used. The department is responsible for ensuring that shortage of supply

Purchasing Manager
The Purchasing Manager is in charge of general stores procurement and direct issue procurement and oversees the operations of the Storeroom.

7/24/12

Purchasing Managers duties are to:


1.

Ensure the availability in stock of items needed for the hotels operations. Receive approved requisition. Canvass suppliers for the best quality at the best price in the quantity needed and on the date 7/24/12 required.

2.

3.

Purchasing Managers duties are to:


4.

Prepare a Purchase Order Forms for approval. When approval is received, purchase the items needed. Oversees the receiving and checking of 7/24/12 supplies delivery.

5.

6.

Purchasing Managers duties are to:


7.

Negotiate for terms (30,60 or 90 days) with the approved suppliers and maintain good relations with them. Ensures that the items are stored properly.
7/24/12

8.

Purchasing Managers duties are to:


9.

Inform the departments that the requisitioned items has been delivered Maintain records of purchases, deliveries, stocks and release. Establish minimum stock levels and economical order 7/24/12

10.

11.

F&B Purchaser
In some establishments with several F&B outlets, the task of purchasing, receiving and storing of food items and F&B supplies may b assigned to an F&B Purchaser, who would do for the F&B Department what the Purchasing Manager does for the rest of the hotel.
7/24/12

F&B Purchaser
The F&B Purchaser is a key person in a successful F&B operations because he or she is responsible for ensuring that quality products are purchased at the right amount and the right place all-year round.

7/24/12

F&B Purchaser
The job entails more than grocery list shopping for meat, fish, poultry, dairy products, dry goods, and beverages and vegetable. The F&B Purchaser has to know whats available, what's cheap and in season, how much it costs at various times of the year, how long it takes to transport the goods and what also the shelf life of each item is.
7/24/12

F&B Purchaser
He or she must know suppliers, must be able to lock in the prices and must also obtain credit lines for the hotel. Additionally, he or she must ensure the availability of the products without overstocking.

7/24/12

F&B Purchaser
Establishing par stock is not enough; knowing what products are moving is essential. Therefore, the F&B Purchaser has to work closely with Executive Chef. In smaller hotels, the F&B Purchasing Officer is also the F&B Receiving Clerk and is often an Accountant as well. This person is 7/24/12

Storeroom Clerk
The Storeroom Clerk is responsible for receiving, storing and issuing stockroom items needed for the operations of the hotel. He or she is responsible for maintaining accurate records of these items and for keeping the Storeroom clean and free of pests and vermin.
7/24/12

Property Custodian
The Property Custodian is responsible and accountable for all properties of the hotel and the restaurants, including all types of equipment, furniture, fixtures, kitchen and restaurant operations equipment, and other fixed assets. The Property Custodian will receive, classify, inspect, store, account for, and issue all these properties. He or she shall 7/24/12 also maintain and restore all properties

The Auditing Department


The Auditing Department checks and varies the correctness of accounting records and reports, as well as the companys system of internal control. It uses standard and generally accepted auditing, and accounting procedures including those prescribed by the HRAP, the DOT and the BIR. The department also implements the necessary procedures in uncovering 7/24/12 and investigating fraud.

The Auditing Department


The department also verifies the hotels daily cash transactions, takes physically inventory and appraises the hotels assets, and examines the reports on the condemned materials. In addition, Auditing Department may be engaged in the hotels cost control operations.

7/24/12

As has often been said, accounting is history. Accountants and auditors are like forensic experts unravelling a mystery. A paper trail helps them to see what transpired with every transaction that was recorded.
7/24/12

The Auditing Department


Corporate Audit, however, is not only means of ensuring compliance. It is also a management tool which supplies management personnel at all levels with information to control the operations for which they are 7/24/12 responsible.

The Auditing Corporate Staff


Auditor

The Corporate Auditor qualities the examination and evaluation of the adequacy and effectiveness of the hotels system of internal control, and the quality of performance in carrying out assigned responsibilities. The Corporate Auditor reports to the 7/24/12 company President and

Senior Auditor
The Senior Auditor prepares working papers and documents to examine and evaluate the adequacy and effectiveness of the hotels system of internal control, and the quality of performance in carrying out assigned responsibilities through financial, operations, compliance and performance audit engagements. He or she reports to Corporate Auditor 7/24/12 and supervises the Junior Auditor, the

Night Auditor
The Night Auditor is responsible for posting all guest charges and balancing departmental charges and guest bills. Sometimes Night Auditor also act as a Cashier.
7/24/12

Shift Auditor
Like Senior Auditor, the Shift Auditor prepares working papers and documents to examine and evaluate the adequacy and effectiveness of the hotels system of internal control, and the quality of performance in carrying out assigned responsibilities through financial, operations, compliance and performance audit engagements.
7/24/12

Junior Audit and Audit Assistant


The Junior Audit and Audit Assistant prepare the papers and documents that facilities the examination and evaluate of the hotels system of internal control. They also check compliance with policies, plans, procedures, etc.
7/24/12

F&B Auditor
The F&B Auditor tracks F&B transactions and verifies that all the sales were posted properly. From time to time, he or she conducts audit and reconciles purchases and sales.
7/24/12

Three Types of Audit


1. .

Financial Audit Involves the evaluation of effectiveness of internal controls and reliability of accounting records to identify control problems that affect the accuracy and reliability of the Financial Statement.

7/24/12

2. .

Operations Audit Involves the study of accounting/financial, marketing, purchasing and other operations to identify problems in performance of management functions in planning, organizing, directing, and controlling operations; identify opportunities for improving performance in all areas; and make recommendations to solve problems or make use of opportunities.

7/24/12

3. .

Compliance Audit Involves evaluating accounting operations and financial aspects of other operations to identify control problems that weaken the protection of assets and reduce compliance with prescribed policies and procedures.
7/24/12

Budgeting and Forecasting: Current Practice in the Click to edit Master subtitle style Lodging Industry

7/24/12

Budget
Budgeting sometimes might be called a profit plan that addresses all revenue sources and expenditure items. Moreover, a budget represents standards against which management can evaluate the actual results of the operations (i.e. Control Procedure). Lastly, budgets are prepared to cope with the uncertainty factor, and to utilize effectively the limited resources or factors of production a company 7/24/12

Budgets are usually prepared on an annual basis then divided into semiannual, quarterly, and/or monthly plans. The main reason for that is to give management more check-points to stop at, compare the actual with the planned figures and take necessary actions when needed which might mean even revising the budget.
7/24/12

Budget planning starts with the establishment of budget cycle, which can be the calendar year or financial year. Normally, the budget planning starts from the top management outlining the general expense categories and rough estimates that the management wishes to allocate for each category. When the top management produces a detailed cost estimates for every expense items and passes on to line-management for verification and confirmation, the process becomes the 7/24/12

Item budgeting is another important activity in operations budgeting. Every cost item needs to be identified and the cost needs to be estimated. This is particularly important when budgeting for the operating expenses such as wage, linen, frills, and other materials used in 7/24/12 the production of good

Capital budgeting is also an important activity but carried by the finance manager. Purchase of new equipment, restoration or extension of facilities requires capital budgeting, which is often accompanied by a feasibility study. The following exercise provides an opportunity to understand the simple budgeting process using percentage change in the historic expenses. Interestingly, the percentage expenses (as a percentage 7/24/12 of revenue) are considered to be

Forecasting

Forecasting is a technique to estimate, based on historical figures, expectations, trends, and/or experience, a certain value of an uncontrollable variable for a certain future period of time.

7/24/12

Forecasting

Moreover, forecasting cannot be as simple as coming up with a figure, solely by considering only historical data, without adjusting to other variables like competition, image and risk of the country, interest rates, inflation, exchange rates, and other economical factors! Therefore, a person who forecasts shall adjust the 7/24/12

You might also like