Budget software task overview

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To get to Budget Mode

  1. When in Forecast Mode, on the Main CIA screen, choose Property Utilities
  2. Click the button that says “Start working on Budget 20xx”

 

Week 1

All tasks listed in this section can begin as soon as the budget modules become available, or sooner in the case of those steps that require the gathering of external data (i.e. Wage surveys).

Room Revenue – DREV

  1. Load and verify historical rooms, rates, and revenues by segment
  2. Load and verify On Books group rooms, rates, and revenues
  3. Load impact statements defining major changes effecting room nights and rates. These changes will be applied to current year totals, creating a first pass budget.
  4. Determine for each Group segment whether “On Books” values or Historical Totals is a better default value for the budget year. (This selection is indicated when the Positive impacts are saved).
  5. With a first pass budget created print the Revenue Presentation report to review the current level of business in each segment. Use the Revenue Presentation Report, On Books Report, and Day by Day Recap report to view totals.
  6. Detail Group “To Be Booked” (anticipated) business by day by segment. This can be done by either entering new group segment totals into the Daily screen, or “To Be” booked values into the On Books screen.
  7. With the Group segments budgeted to desired levels, reprint the Presentation, On Books, and other reports to begin examining what changes are needed to the Transient Segments.
  8. If major changes are needed to the Transient Segments, try using the Patterns screen, to create three distinct levels of business that can be pasted into each week of the year as necessary. (If only minor changes are needed, proceed to step 10)
  9. Once patterns are created, switch to the daily screen, where you can select for each transient segment the appropriate level of business for each week (High, Average, or Low). Once the default values from the pattern are entered, you can manually change any days that need further refining.
  10. When transient segments reach the point where only minor changes are needed, go through each week refining the budget by entering specific room nights and rates where necessary.
  11. When all desired changes are made, reprint reports to determine if budget is at necessary levels. If budget meets expectations, proceed with remainder of budget process.
  12. If additional changes are needed, you may be able to make the necessary modifications using the Monthly screen. This screen allows for discreet changes in room nights and any change to rate structure.

DREV should be completed during the first week of the budget process, as several other steps throughout the process are dependent on the rooms’ budget.

FBREV

All tasks listed below can be completed while the rooms’ budget is being worked on.

  1. Load and verify historical covers, average checks, and revenues by outlet by meal period
  2. Load and verify On Books covers, average checks, and revenues by meal period. (Complete the detailing of all Catering bookings for the budget year)
  3. It is possible to enter Capture percentage, Per occupied room amounts, and cover and average check amounts into each outlet before the rooms budget is complete, but resulting revenue totals should be ignored until the rooms budget is completed.

LABOR

  1. Current and Proposed wage surveys, Wage and Benefit surveys, and the list of employees that exceed the wage scale can be entered at any time through out the budget process, as they do not directly effect the calculation of budgeted labor cost.
  2. Once the current and proposed wage sections are complete, the Copy button can be used to enter default values into the monthly screen. The dates indicated in the wage scales will be used to determine the Regular pay rate for each month, the overtime will automatically calculate as 1.5 times the regular rate of pay.  Contract rates will have to be keyed into the form.  You can overwrite any amount by merely typing in the desired field.
  3. Standards can be entered into the Labor program at any point, however labor cost will not be calculated until the revenue modules (DREV and FBREV) are complete, and the monthly wages screen is complete.

Buddy

  1. Historical totals can be loaded and verified against the P&L at any time.
  2. Users can enter the format and factor for any expense or other revenue lines at any time, however totals should not be considered correct until such time as the revenue modules, labor program, and ASAP (Sales and Marketing and total operating expense only) are completed.
  3. Explanations can be written at anytime provided that annual amounts are not going to be referenced in the text.

ASAP

  1. Templates for Action Types should be created, including default support tasks and account numbers.
  2. Action plans, their details and costs can be completed at anytime, as they are not related directly to any other module in the process. Some consideration should be given to the focus of growth in certain segments or areas of the hotel.

 

Week 2

These tasks are dependent upon rooms’ statistics and revenue being complete

FBREV

The steps described below are performed once in Step 5 to complete the forecast of the current year, and then again in Step 6 for the budget year.

 

  1. With history and on books values loaded and verified, and the completed rooms budget loaded from DREV, the Catering revenue forecast and budget can now be completed.
  2. Proceed to step 5 of FBREV and begin the process of forecasting the remainder of the year as follows:
  3. The Group Room food covers can be entered either as a capture percentage or whole cover number. In either case, the value should be initially entered into the Monthly screen.
  4. Switch to the daily screen and refine any specific dates that appear to need adjusting, for Group Room related only.
  5. If a number of dates required adjustment in step 3, continue to complete all other months using only the daily screen. If only a few dates required adjustment, complete the monthly screen for all remaining budget months, and then make a second pass through the daily screens to catch any minor adjustments needed.
  6. With the Group Room Related banquets forecast complete, enter the To Be Booked covers and average check amounts for the Local / Social Catering. Again use one month as a test to see if the spread of data entered into the Monthly screen will work, or whether entries need to be done on a daily basis.
  7. Proceed with the completion of the Local / Social banquet food revenue screens for each month.
  8. With Banquet food revenue completed, proceed to the screens for Banquet beverage and miscellaneous revenues and complete the finalization of budget numbers for those sections.
  9. While Banquet Beverage and Miscellaneous revenues are completed. The process of forecasting food revenue for other outlets can be completed.
  10. Capture percentages, covers per day, specific covers (for holidays, etc.), and average checks can be loaded into the monthly screen as defaults.
  11. With the monthly screens complete, make a second pass through the outlet looking at the daily screen. Note any date that has unusual capture % numbers on the right hand side of the screen.  Use the Group Details and All Outlets buttons to look at more detail about the dates in question.  Adjust the capture percentages, cover counts, or average checks for the outlet as necessary.
  12. Complete the process described in steps 10 and 11 for each outlet, before proceeding to the beverage budgets. Print the Verification report and ensure that you are satisfied with the food and banquet forecasts.
  13. Return to each outlet and forecast the desired beverage revenue, either as a dollar amount or based on the indicated factor.
  14. Reprint the verification and other reports to review the total forecasted revenues.

LABOR

With the wage screens and rooms budget complete:

 

  1. The Position by Average Rate, Proposed Wage Report, Individuals Over the Maximum Rate, Competitive Wage Survey, and Competitive Benefits Survey reports can all be printed.
  2. Any jobs based on fixed weekly schedules (i.e. Administrative Assistants, Engineering Positions, etc.) can be budgeted by entering the desired weekly schedules.
  3. All positions whose payroll is based on Occupied Rooms can also be budgeted. Standards using hours per Occupied room or levels based on occupied rooms can be calculated.
  4. Standards can be entered for positions based on Food and Beverage factors or total revenues, but totals will not be calculated.

Buddy

With historical totals verified, and the rooms budget complete:

 

  1. Rooms’ department expenses can be completed.
  2. Any account based solely on occupied rooms, or room revenue, can be completed. (I.e. Reservations Fees, certain maintenance accounts, etc.
  3. Users can continue to enter the format and factor for expenses or other revenue lines, not directly tied to rooms’ statistics or revenue, but should not review totals until other modules are complete.
  4. Users can continue to complete explanation screens.
  5. Any report for the Rooms Department can be printed.

ASAP

  1. Action plans, their details and costs should be completed and any additional cost (not related to specific actions) should be entered into the additional expense screen.
  2. Once data entry is completed, the Project Budget Detail, Budget Expense by Account, and Total Budget Expense by Account reports should be reviewed.
  3. Adjustments should be made to cost as necessary.

 

Weeks 3 – 4

These tasks are dependent upon both rooms and f&b statistics and revenues being complete:

LABOR

 

  1. Budget figures for F&B positions can now be calculated and reviewed. Standards using hours per covers or levels based on covers or food and beverage revenues can be calculated.
  2. Standards can be entered for positions based on Food and Beverage factors or total revenues, but totals will not be calculated.
  3. Once standards for all hourly positions are entered, all reports can be printed and reviewed,
  4. Make adjustments to standards as necessary.

 

Buddy

 

  1. Food and Beverage division expenses can be completed.
  2. All accounts can be completed.
  3. All necessary explanation screens should now be completed.
  4. All reports should be printed and reviewed.
  5. Any necessary changes should be made.

ASAP

  1. Verify that final values from the Action Plans should be loaded into Buddy.

BPLAN

  1. All required DREV and FBREV values should load to the Plan when the program is accessed.
  2. From the File menu select “Print All” to print the entire plan.
  3. Manually review the pages of the plan and the values loaded from the other programs.
  4. Gather the information needed to complete the various pages.
  5. Once Buddy is complete, re-access the Plan to import final budget data.
  6. Once all pages are completely filled out, print the plan.