Financial Reporting Review

Why is it that many hotel managers insist on managing your business by looking in the rear view mirror?  Mankarios Partnership believes that profits will be maximized by looking forward and designing a balance of reports and controls that effectively captures the profit in future revenues. 

The Budget and Forecasting Process

Aggressive but achievable targets should be set, respectful of the existing and expected market conditions but challenging to management. Revenue capture, fixed expenses and variable expenses, along with the variable drivers need to be identified and agreed upon. This model is then used to not only monitor the effectiveness of past performance but also the expected profitability of future revenue. 

Variance Reporting

Once the operating standards have been agreed to, reports can focus on the exceptions, allowing Mankarios Partnership to focus on problem areas. As long as the top line remains within certain parameters, agreed fixed staffing and expense levels need not be revisited every month. We always look behind the numbers to better understand results.

Labor Productivity

The most expensive component of a hotel cost structure is labor. While labor rates are driven by the market, productivity is driven by effective daily management. Mankarios Partnership ensures that systems are in place to assist manager in this task as well as evaluate their effectiveness. 

Balance Sheet Analysis

Monthly profitability reporting is only accurate and meaningful if accompanied by an accurate and meaningful balance sheet. Mankarios Partnership's experience allows for a thorough review of receivable, inventories, accruals and other components to ensure that reported profitability is accurate.