In the budget and financial management of the hotel's daily operation and management, we mainly use the hotel's income statement.

Key points of budget and financial management in hotel daily operation;

1. First, we should establish a budget standard for each income or expenditure item.

2. Compare the actual completion with the budget, find out the differences, and then analyze the reasons or formulate improvement measures.

3. Clarify the responsibilities of financial management. The principle is to make it clear that those who can actually control income are responsible for certain income and expenses. Specifically,

(1) The experience of each business department is responsible for the income and expenditure (operating profit) of this department.

(2) For non-operating departments, the manager is responsible for the department's expenses and work task indicators.

(3) The general manager is responsible for the total operating profit of the hotel.

(4) As for the fixed expenses of non-operation and investment, including rent, property tax, insurance premium, interest, depreciation expense, etc., because they are fixed and are not affected by operation, they are decided by investors (owners), so investors are responsible. Of course, investors are also responsible for the final profit and loss. Investors should also be responsible for how much tax they should pay.

4. In the actual financial management, responsibility accounting system should be adopted to divide the hotel departments into cost centers, profit centers and investment centers for management.

It should be noted that the accounting system is not only used to collect figures, but more importantly, it is to establish a structure so that people can understand and bear the responsibility of revenue and expenditure and profit and loss of each work. This is responsibility accounting system.

Cost center refers to departments that have no income, such as hotel administrative office, marketing department, engineering maintenance department, etc. They are only responsible for controlling the cost. However, according to responsibility accounting system, the cost is not only the responsibility of the department that incurred the cost, but also the responsibility of the department that can really control the cost. The key is to control those controllable and most important expenses.

Profit center refers to the department with both income and expenditure. The responsibility of profit center is to control both income and cost, and measure the profit rate of operating income from the comprehensive analysis of income and cost.

Investment center refers to the unit that is not only responsible for income and expenditure, but also responsible for related investments. Generally speaking, the whole hotel is an investment center. It should not only calculate its balance of payments, but also calculate its investment recovery rate and capital profit rate.

5. Profit center and cost center have different strategic objectives. The cost center pursues efficiency and often emphasizes reducing costs and saving expenses. In addition to pursuing efficiency, it is also necessary to develop profit centers in order to obtain more profits. The establishment of profit center can also motivate managers to feel that they are in charge of an independent enterprise and cultivate their ability to develop from being in charge of a small unit to being ready to be in charge of a large enterprise.