Arts Entertainments

Types of cleaning budget

The budget setting depends on the function of the hotel or facility. A hotel or facility can be operated on a smaller or larger scale. The bigger they are, the more complex it becomes.

In a smaller-scale hotel or facility, there is usually reception, cleaning and maintenance and expenses are mainly controlled by the owner through the general manager. They were the main decision makers in preparing the annual budget with the help of an accountant or accounting firm. The budgeted amount required to operate throughout the year is based on expenses incurred in previous years and other related occasions that will affect budget preparation for the next year.

In a larger-scale hotel, expenses can be very complicated since the operation varies from the departments created for the proper functioning of the hotel. In some international hotels, each department head prepares the budget with the help of the financial controller and the general manager and then submits it to the owner or corporation for approval. Once sanctioned, each department head is responsible for ensuring that the assigned budget is monitored and controlled based on the percentage of occupancy. The General Manager receives a copy of the budget results every month-end and discusses them with the department head.

Examples of departments in a larger-scale hotel are: Administration, Reception, Cleaning, Laundry, Engineering, Food and Beverage, Kitchen, Finance, Human Resources, Recreation and any other department created to adapt to the function and proper operation of the hotel. Each of these departments has sub-departments such as Reception with Reservations and Bellboy / Concierge Service; Cleaning with Laundry, Uniform, White Clothes, Tailoring, Florist, Gardening and Landscaping, Upholstery (the latter can also be assigned to Engineering); Carpentry, Masonry, Electrical, Mechanical, Computer Engineering etc .; food and beverages with banquets and external catering; Kitchen with Pastry; Finance with Purchasing, Receiving and Storage; Recreation with Pool, Golf Course, Tennis Courts, Spa etc .; Human Resources with Training and Clinic.

Housekeeping and other hotel departments operate within two types of budget. The Operating Budget and the Capital Expenditure Budget.

1) Operating budget It is the allocation of expenses for each item / s that the department requires in order to operate smoothly. In the case of a hotel operation, cost control is based on the percentage of occupancy. The amount budgeted for the month can be variable as there are certain periods when occupancy forecasts in other areas or countries are unreliable or unpredictable.

The basic Housekeeping operating budget is as follows:

a) Staffing

b) Bed linen and towels

c) Guest supplies and amenities

d) Cleaning supplies

e) Laundry supplies

f) Machines, Tools and Equipment

g) Decoration

h) Various

i) Printing and stationery

There are budgeted items or sections in Housekeeping that are normally divided among other departments such as the following:

1) Repairs and Maintenance

This type of operating budget is generally divided between cleaning and engineering.

2) Uniform Budget

The expense uniform is prepared by the Executive Housekeeper with all the elegance, comfort, durability, styles, colors and functionality of the uniform chosen for each department. Once a specific style of uniform has been chosen, it is coordinated with the concern department and when the Executive Housekeeper gets approval, they send it to the General Manager for overall coordination of styles, colors, functionality, etc. that reflects the correct perception of the image of the entire hotel in the eyes of the guests. The last step will be to endorse them to the Financial Controller for the allocation of the budgeted amount to each department.

3) Decoration

The cleaning service is one of the hotel departments that helps and assists in the beautification of the hotel inside and outside the building. The decoration can be flower arrangements, frescoes and artificial depending on the hotel policy as there are hotels that prohibit the use of artificial flower arrangements due to fire risk, picture frames, statues, carvings, tapestries, artifacts and many others are examples of decorations. Requests for flower arrangements seemed to be the most necessary items in the hotel, whether it be for rooms, food and beverage functions, outside catering, the hotel lobby, convention centers and other areas that require flower arrangements.

4) Printing and Stationery

Front Office and Housekeeping are the two departments that share this budget.

5) Various

This type of budget can be charged between Housekeeping and any other department, depending on the type of expenses incurred.

The second type of cleaning budget is capital expenditure (CAPEX)

The capital expenditure budget is the allocation of funds for a specific project or items that will aid and aid the operation of the hotel. In the case of cleaning service, projects can be something that requires replacement or an additional cart for cleaning service, washing machine and clothes dryer, construction of a new laundry for external customers, replacement of vacuum cleaners, replacement of worn beds or furniture, which is usually done floor by floor. or by segments. Generally, the CAPEX fund is allocated in the same way that the operating budget was allocated for the next year. Therefore, on an annual basis, projects are carried out and completed, especially if the items have a specific useful life where replacement is done specifically every year. In this way, the hotel or facility is well maintained, equipped and preserved as new. It is through the CAPEX fund that the maintenance of the hotel works better and at the same time avoids the depreciation of items in large quantities where it is difficult to solve since they require a large amount to achieve.

Therefore, in order to have a smoothly running and well-maintained hotel or facility, it is important that the allocation of funds for the operational needs and maintenance of the hotel is effectively managed and controlled based on the percentage of occupancy where key department heads are briefed on how to adjust their budget accordingly. Key personnel responsible for preparing the budget should ensure that the allocated fund is spent specifically for its intended purpose. The lateral pursuit of the established objective will be a never-ending task that will not have a definite or specific achievement. Not being able to monitor the operating budget effectively will lead to the disappearance of capital expenditures.

Capital expenditure budget It is as important as Operating budget when it comes to hotel business.

Leave a Reply

Your email address will not be published. Required fields are marked *