Hospitality financial management is an integral part of the hotel industry and its job is to ensure that the restaurant or hotel financial components are suitably managed and organized. The department takes care of short-term expenses like employee payments, returns on advertising, and food expense supervision, along with long-term accountabilities like debts and property charges.
In simple words, the task of hospitality financial management is to make sure that the hotel’s funds and resources are suitably managed. Hence, the incoming income should always balance the various outgoing expenses that include purchase of products, payment of employees, short-term equipment leasing, and other expenditures. Moreover, long-term assets are required to effectively manage the hospitality establishment, raising the need to finance long-term debts. Also, the department must combat the high cost of operating expenses like tax or rent paid on the property, which could be excessive if based in an expensive location.
The financial manager should deal with the cyclic nature of business and ensure that in the lean periods, the establishments have sufficient existing assets to cover the operational expense. They should tackle the problem of perishable nature of foodstuff to save the facility from needless expenses. Their job is to promote local tourism programs to attract crowds and increase revenues, and make marketing strategies to advertise the business.
Big hotels and establishments can appoint a singular person as finance manager and give him the responsibilities to manage business finance. In smaller hotels and restaurants, the organizational manager can be given added duties to manage business funds.
