As a business owner, have you recently taken a step back to really see the bigger picture of your business? Or have you been so caught up in the daily grind that there’s barely enough time for you to check that strategic plans are being efficiently adapted within your business? If the latter, let me guess—you’re in the hospitality industry, correct?
Customer satisfaction is the ultimate goal for hospitality businesses and as the owner, you are in charge of spotting opportunities and analysing key daily operations that can help improve operations. I know what you’re thinking: “Another item to add to my already full plate," but rest assured you can simply analyse all your key information through quarterly management reports—easy as!
You use accounting reports to understand revenue, expenses, gross/net income and to comply with finance, fair trading and employment laws—but these are mostly numbers. Management reports provide data that can help your managers successfully run the business.
For instance, while there’s no single template for all businesses, a typical management report includes price, employment and marketing analyses. It presents clear targets and KPIs in easy-to-read charts that show you operational and financial data based on your previous wins and future goals.
You can use a management report to analyse which strategies have worked and how your management team has applied them. The report will show how your team works together to keep the business running smoothly and provide the most critical product of all: first-rate customer service.
As hospitality industries rely on suppliers and partners in their everyday operations, it’s important that you also include business interactions in your management report. This will help you determine if your operating costs are still reasonable and if your business could benefit from switching to new suppliers in the short and long term.
Tracking all these KPIs will not only help you benchmark employment satisfaction and motivation along with financial performance internally, but also assess your market and competitors effectively. It will improve communications among stakeholders and management and open doors to new ideas—because who doesn’t want some fresh innovation and inspiration?
While financial statements are best done annually for compliance, management reports should be generated more regularly so you can keep a better pulse on your business. This will help you understand the strengths and weaknesses of your daily operations and make sound decisions out of them. To avoid overkill, and to get a good oversight of your business at a set point in time, we recommend producing management reports quarterly, or aligning them with the preparation of your GST Return.
Have we got you passionate about management reporting? Are you eager to gather some deeper insights into how your business operates and if you’re reaching strategic goals? Flick us a message, or give us a buzz—the Outside Team can jump in any time you need us!
Your Outside Team, Ruby and Rocket
Mail: PO Box 24-457, Wellington 6142
Phone: 04 889 2975