Profitability is a crucial aspect of any business. But how can we control the expenses and maximise profit in an industry? We can do this using financial statements and reports. This course will teach you how to analyse and understand the hotel’s overall financial statements. At first, it describes the hotel operations and the cost structure. Then discover the divisions and main and secondary departments before diving into the financial statements. The ‘Uniform System of Accounting for Lodging Industries’ prescribes the overall financial statements. This course outlines the fundamentals of accounting concepts like ‘accruals’, ‘allocation of expenses’ and ‘prepayments’. But how can we manage the revenue in a hotel? We discuss the key revenue terms regarding the quantity, the segmentation for revenue of the rooms division and the food and beverage branch of the hotel.

Next, this course will explain the standard templates for the hotel profit and loss statements. How can we evaluate the performance and the profitability of the hotel? We can do this using horizontal, vertical and ratio analysis. You will go through examples of horizontal, vertical and combined analyses and learn the limitations and critical concepts of ratio analysis. Next, we will examine the various operating and marketing reports before learning the classification of menu items that study profitability and popularity. Investigate the expenses and expense control reports. Explore labour cost, segregation and other components as service charges. You will also learn about productivity reports and ‘zero-base manning’. Finally, this course highlights cost management concepts.

The last part presents the five steps of Profit and Loss analysis and how to implement them. But how can you set the menu prices for the restaurant? This course will guide you through menu costing excel templates found in the resources section. You will learn to estimate the need to raise prices and the desired average spending of a guest. This course will be helpful to hotel managers who want to use the various financial statements to control expenses and maximise profit. It is also beneficial for food and beverage managers and individual restaurant owners who wish to set menu prices using data. Register today and become a financial wizard in the hotel industry.