Front Office Management Budget

5663 Words Mar 9th, 2011 23 Pages
1.0 INTRODUCION
1.1 What Are Budgets?
(By Lydia Wanjiru)
They are predictions of future income and expenses and cash flow. They also predict future performance with financial forecasts and projections and with financial models.
The process of creating a weekly departmental schedule can be time consuming. It’s difficult to juggle various financial guidelines as well as ensure optimum staffing levels to properly serve guests without a budget. The front office ‘transaction’ is simply the time it takes to check a conference guest in and/ or out of the hotel.
A budget is a financial document used to project future income and expenses. The budgeting process may be carried out by individuals or companies to estimate whether the person/ company
…show more content…
A finished budget, usually requiring considerable effort, is a plan for the short-term future, typically one year. While traditionally the Finance department compiles the company's budget, modern software allows hundreds or even thousands of people in various departments (front office, operations, human resources, IT, etc.) to list their expected revenues and expenses in the final budget.
According to Andrews Front office management( 2007), today most businesses, especially small businesses follow an earn-and-spend as-you-go strategy, which clearly lack financial discipline. Most businesses do not keep their focus on accounting or profit or loss; they just are run by the feeling either they are profiting or losing. A good budget covering most company activities can take your business to new direction.
According to Wikipedia encyclopedia( 2010), a financial operating budget outlines all of a given company's income in terms of sales and investments, along with its spending, whether flexible or variable expenses. The operating budget outlines all of the fees and categories the business needs to operate and provide products and services to customers. There are numerous benefits to creating, updating and maintaining a financial operating budget for your business
According to eHow.com, if your business is growing, you may not always be able to be hands-on with every part of it. You may have to split your budget up between different areas such as sales,