Using P&L Analysis to Improve Profit
We were honored to provide the FREE WORTH Academy where we guide Owners to understand the USALI Hotel Standard for Accounting and Reporting. In the presentation, we discussed that with full USALI compliance, Owners could gain the benefits of comparability to other hotels and industry studies using a small portion of the USALI accounts and guidelines.
As part of the FREE WORTH Academy, we offered the several guidelines and samples to help move towards USALI compliance.
You can access those aides, listed below, by creating a free account and logging into our portal.
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While it’s easier than you may think to become USALI Comparable and gain the benefits for being comparable, it is not “simple”. In addition to the downloads, we are happy to schedule a short call to talk about your goals and offering any assistance we can.
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There is an order that we recommend you do things in to get the most benefit in the easiest fashion:
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Change your chart of accounts to be USALI-comparable
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Create a monthly report that follows the USALI Summary Report Format
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Convert your history, or generate the new report for at least 6 months, then do a Profit Comparison
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Use the comparable P&L format for at least 12 months (or convert your history) before trying to use Analytics.
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Request a What If Profit projection, allowing us to create a Daily GOP point to measure against.
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Free Guides and Examples
Suggested Charts of Accounts for Midscale, Economy, and Minimal Comparable
3 lists of accounts in a single Excel file, each following USALI guidelines. These charts are presented as a starting point, from which you can add or delete accounts to meet your needs. The three charts use 138, 99, and 46 accounts.
We are happy to answer questions and provide advice on getting a chart that is right for your situation and still USALI comparable.
A PowerPoint explaining how to have a Comparable P&L
An explanation of the 3 components of being USALI Comparable. Start with an explanation of what you really need to know about Accounts. Gain a better understanding of why “Report Format” is really the key to being comparable. Then finish with learning about how coding your revenues and invoices can make a big impact on your comparability.
A sample P&L Format in Excel
An Excel sample of what a Monthly Operating Statement (often called the P&L) should look like.
This is the format you are looking for in creating your report. NOTE: This is a sample format only. It does not contain any formulas and is not intended to use as YOUR report.
We can help you develop a report for actual use if you would like.
Beyond the Basics
Hotel Operating Profit Evaluation
Compare your hotel’s Profit to hotels of similar size, profile, and revenue to see if you may be able to improve your income. Using our HOPE website, enter your numbers and download your comparison report.
Want help reviewing the results and getting some thoughts on improvements? We’re an email away.
What If Profit
Our newest project, the WIP, uses a minimal amount of input to calculate how many rooms you need to sell to produce profit (avoiding losses) and determine the amount of sales you’ll need to be at the Profit (Income) level you’re looking for as an owner.
Evaluation of your Current Accounting Report Format
Send us your Chart of Accounts and Accounting Reports, and we’ll customize a set of steps and recommendations to get you from where you are to USALI Comparability.
Evaluation of your accounting and operations processes
In our free consultation, we’ll walk through a series of questions designed to help us better understand your operations and reporting. Then we’ll send you a written set of recommendations you can use to enhance your Profit Management.
A P&L Review of your Profitability
Once you’re USALI compliant, we offer a one-time review of your P&L results to help you find areas of concern, and train owners on how to do a P&L review for themselves.
