COMPREHENSIVE HOSPITALITY SOLUTIONS, LLC
Budgeting and Forecasting
Budgeting and forecasting are two of the most important ingredients for business owners to run a profitable company. The purpose of this process is to establish a financial target that will help define the company’s direction.
Hospitality and Restaurant Budgeting
Budgeting provides a prediction of revenues and expenses. The budgeting model depicts how your business might perform financially if your strategies are carried out. This will enable a good comparison between the business actual and budgeted financial data.
Business budgeting is an essential process that allows your business to attain many goals with one course of action. Goals including control, evaluation, planning, communication, and motivation. This is a vital part of the restaurant bookkeeping and consulting services we provide for the NYC-area businesses.
The budgeting process can be summarized in 4 steps:
- Set business targets
- Accumulate historical data
- Prepare business plans and strategies
- Compile into budget
The hospitality and restaurant forecasting process is different from the budgeting process. While the budget sets the targets for the company to achieve, the forecast provides the company with an idea of what is expected. Forecasting is the process of analyzing current and historical data to determine future trends.
Hospitality and Restaurant Forecasting
The hospitality and restaurant forecasting process can be summarized in 4 steps:
- Analyze past months’ results
- Revised business plans and strategies
- Prepare forecast based on revised plans and strategies
- Prepare the final forecast report for the full financial year
Budgeting and forecasting is an ongoing process that is the foundation for success. Back Office Solutions offers budgeting and forecasting solutions that give your managers the power to monitor and control operations while staying connected to the corporate planning process.