Budget planning for hotel house-keeping
Budget is one of the main planning activities for an executive house-keeper. It is the process by which based on actual performance of establishment in the past estimates of expenditure, & receipts are made & adjusted for forecasting future outcome.
A budget may be defined as plan which projects both the revenue the hotel anticipates during the period covered by the budget & the expenses require to generate the anticipated revenue.
Types of budget –
Capital budget –
This makes the provision of all the capital expenditure , It takes into the account all items which are guaranteed to have a life span of number of years. It is very important to keep records, of purchase & repairs as a form of control. The items which are provided for this type are as follows
- Large equipment & machinates
- Fixture & fittings
- Linen & towels
Operative budget –
It makes the provision for all those items, which are needed for day to day operation in the department.
- Cleaning agent
- Small items of cleaning equipment’s like rubber gloves, door steps bucket, duster cloth etc.
- Staff & guest supplies
- Contract services.
Preparation of budget
A budget should not be prepared at the last minute. Ideally the house- keeper should have a list place in a convenient spot, in the office, & makes notes through out the year, for improvement. Standared forms are issued to each department head for completion & yearly deadline date is set. Discussion should have previously taken, place, between the general manager, & the other department heads in order that they are aware of future company objectives which may be reflected.
Past records & previous budget may be used as a basis for the new one, taking into the account of inflation percentage.. The house- keeper must also consider any change in the companies purchasing policy. He should also be aware of new technology & better product which are appeared in the market.
When the budget forms are completed & comprehensive price obtained, they are usually forwarded to the financial controller, in order that the costing may be placed. This is usually the time when economy are made, & the house-keeper has to state requirement in order, that any cut backs are made.., the departmental head still end up with the, sufficient funds to meet the need
Once it is has been agreed upon, the house-keeper may then, proceed to make purchase, Some people prefer to do their buying immediately. To take advantage of the lower price, & to ensure all the necessary items are brought in the hope that there may be little money, left over for extra for extra relocation of funds at the end of the year.