The most important document that everyone in the hotel business must use, the profit and loss statement. The P&L is every hotel managers worst nightmare because of the amount of time spent looking at it and compiling it, but mastering it reaps its weight in gold. The Profit and Loss statement is used for each department to measure their financial performance. It compares the current month’s progress to the current monthly budget, the previous month
Revenue – Expenses = Net Profit
There are plenty of ways of compiling your Profit and Loss statement. It is basically
1. Revenue – Cost of Good = Gross Profit
2. Gross profit – Fixed Expenses = Operating Income
3. Operating Income +/- Non-Operating Expenses = Pre-Tax Income
4. Pre-Tax Income – Income Taxes = Net Profit
There are some very some very good online places where you can get some very functional templates. Check out the ones at Microsoft or Vertex42. If you have anything you’re wondering about, let us know in the comments down below.