Cleaning is one of the hotel departments that has the highest amount of expenses and consumables. Items such as toiletries such as shampoo, conditioner, body lotion or moisturizer, eau de toilette, face and body soap; bath towel, hand towel, face towel, bath mat, bathrobe, rubber mat; bed sheet, pillow, pillowcase, cushion, neck pillow, mattress pad, blanket, comforter / duvet insert, bed cover; toilet paper, facial tissues; coffee pot, coffee bag, sugar condiments; ironing board, iron; alarm clock; kitchen utensils, crockery and cutlery; give away a toothbrush and toothpaste; Printing materials, stationery, envelope, notepad, pen, folder, phone book, Bible, or the Holy Quran can have a substantial impact on hotel overheads.
These are variable assets that when consumed, damaged, lost or deficient, are discarded or withdrawn from circulation. Once withdrawn from circulation or consumed, the same quantities must be replenished or replaced with an additional margin to maintain the high standard or quality of service in the hotel.
Fixed assets such as furniture and room accessories such as beds, refrigerators, televisions, mirrors, sofas, armchairs, recliners, tables, telephones, lamps, headboards, air conditioning / heating equipment, etc. it can be very expensive when damaged or substandard. These items are generally included in the capital expenditure budget, especially when a renovation is required. But if it is only one or two pieces, this amount can be allocated in the operating budget.
For the machine and equipment, the housekeeper’s cart and vacuum cleaners are the most important tool used in the general cleaning and maintenance of hotel rooms and public areas. Machines such as carpet shampoo and water extraction machine, carpet shampoo rotary machine, floor scrubber and polisher, wet and dry vacuum cleaner. hydraulic lifting, etc. They are additional heavy duty machines that help with the general cleaning requirements of the hotel. These are also included in the capital expenditure budget.
For the laundry area, there will be a laundry machine, washer, dryer, dry cleaning machine, laundry folding / calendar machine, tables, trolleys, laundry sorter boxes, movable clothes hanging rails, guest laundry printer , etc. are capital expenditure items, whereas detergent, bleach, stain remover, dry cleaning liquid, ph level water treatment solution, etc. goes to the operating budget.
By listing all the detailed elements involved in preparing the budget, it will give you an idea of how intricate the cleaning budget preparation is.
With the many items listed above, consumable or fast-moving items are the most important items in budgeting. Consumable items are included in the operating budget. Fixed asset items are included in the capital expenditure or CAPEX budget.
The Operating Budget is prepared annually and presented to the Finance Director for further study and to finalize the total amount in coordination with the head of the department. The operating budget is always based on the expected occupancy percentage for the next year. For instance:
Item: toilet paper roll at $ 0.50 / roll
2008 consumption at 50% occupancy = 50,000 to $ 0.50 = $ 25,000.00
The percentage of occupancy forecast for 2009 is 75%
75% – 50% = 25% (25% of 50,000 = 12,500)
(50% + 25% = 75%) = ($ 25,000.00 + $ 12,500.00 = @ 37,500.00)
The remaining items are calculated in the same way until all the necessary items are included in next year’s budget.
The capital expenditure budget is for specific items or projects that need to be replaced, made and built to improve guest service or the hotel itself. For instance:
The hotel management, with the approval of the hotel owner, wishes to extend the Laundry service to guests who are not hotel guests or external clients. The project will be a “Laundry Shop” therefore a quote from the contractor will be required for the cost of building the Laundry Shop, the extra guest / customer laundry bag, the laundry and dry cleaning list, and hand additional work for customer service, etc. To summarize the amount of Laundry Construction = $ 35,000.00; Additional laundry bags and lists = $ 5,000.00 and additional labor = $ 9,000.00 annually.
The $ 35,000.00 will be included in capital expenditures, while additional laundry bags / lists and labor will be added to the personnel and operating budget.
Therefore, the operating budget is for consumable items and the Capital Expenditure is for special projects or items that are expensive. There are also certain items shared by reception and housekeeping. Charges on these items are being divided between the two departments. When it comes to Maintenance, the Engineering Department charges the Cleaning Department for any services provided, such as machine maintenance, in which they have to supply machine parts and labor, so these are coordinated with Engineering . It is important that cleaning machines are handled with care to avoid such charges.
Tracking the operating budget is the most crucial part in running the business. With modern technology and computer software, total expenses updated daily against the budgeted amount are possible and easy to track so as not to exceed the budgeted amount. Every end of the month, the Accounting Department distributes copies of last month’s budget result to the General Manager and Heads of Department for them to review and analyze where their budget is aligned and where it is not. The General Manager will demand a reasonable report from the department head who has exceeded his budget, since he is responsible to the corporation and also to the hotel owner.
