Financial management in the hospitality industry

Not many people would think of the strong link that exists between Hospitality and Finance. These industries are often considered as opposites says Colin Gittens of Angel Recruitment.

Financial management lays the foundation of a successful business. Likewise, the most successful hotels and venues rely on fundamental financial management principles to enable them to manage their property profitably.

Best practices of financial management in the hospitality industry include: creating an annual budget; building a detailed financial tracking model; having on-going audits and creating a reporting structure that helps managers keep tab on P&L information.

Once Covid-19 kicked in, we realised how many credible hospitality clients have suffered due to finances of the business. Finally, we can see light at the end of the tunnel the key advice we can offer to our partners is to look at finding experienced and trusted finance professionals. Remember: financial success also depends on accountability – making employees and managers responsible for achieving financial goals in their respective functional area, says Colin Gittens Head of Finance division at Angel Recruitment.

We should also remember that that hospitality is people business. The importance of human service in this field makes it look like numerical data cannot be part of the equation. In fact, like any other industry, hospitality needs accountants and financial analysts who will gather, analyse and provide data that will enable the management team to optimise the product and make the right decisions.

Colin also notices that more then 80% of most inspiring professionals in the Hospitality industry do not feel confident talking about the financial sides of the business hence they tend to ignore it and hope for the best. Things don’t have to be so complicated. You don’t even need to have an in-house finance department. If you need help on recruiting financial specialists or support, choose a flexible managed payroll service solution like ANGEL PAYROLL.