Navigating the intricacies of a budget process can often feel like embarking on a complex journey. From financial planning and resource allocation to decision-making and prioritisation, understanding how budgets are formulated and executed is crucial for individuals and organisations alike.
Fairmas collaborated with our partner HotStats to create an infographic that sheds light on the various stages of the budget process, offering a guide and overview of its key components. Whether you’re a newcomer to budgeting or seeking to refresh your knowledge, this visual guide aims to unravel the budgetary labyrinth and empower you with insights to make informed fiscal choices.
Join us as we unravel the layers of budgeting, transforming the intricate into the intelligible.
1. Set Clear Financial Goals
Fairmas Tip: Define property needs; benefit from the rolling forecast option for realistic targets.
HotStats Tip: Gather detailed financial data: revenue, costs, and operational outlays.
2. Examine Past Performance
HotStats Tip: Dive into historical data, benchmark against industry norms, and spot trends.
Fairmas Tip: Apply “Every line needs an owner” or “zero based budgeting” principle to decipher cost-saving potentials.
3. Pinpoint Key Metrics
HotStats Tip: Beyond RevPAR, consider GOPPAR and TRevPAR.
Fairmas Tip: Compare properties; swiftly generate reports on crucial KPIs.
4. Budget Wisely: Spend & Save
Fairmas Tip: Tap scenario tools for balanced resource distribution.
HotStats Tip: Fine-tune resource use and explore fresh revenue avenues.
5. Forge a Robust Financial Strategy
HotStats Tip: Identify performance gaps, boost revenue paths and curb expenses.
Fairmas Tip: Adapt to changing conditions with flexible planning; allocate resources effectively.
6. Sync with Organisational Aims
Fairmas Tip: Speed up reviews with automated reports and consolidation.
HotStats Tip: Align resources using insights from Hotstats’ monthly Hotel Benchmarking reports.
7. Implement, Oversee and Refine
Fairmas Tip: Apply a planning and reporting schedule for monthly forecast updates.
HotStats Tip: Stay updated with monthly reports; track and tweak performance.