Monthly management reporting helps hospitality businesses make strategic decisions. Customised management reporting enables owners and managers to understand operations and make informed decisions for the improvement of their venue.
What is a management report?
Management reports go beyond finance, they help managers make better decisions by highlighting everyday operational strengths and weaknesses. These internal reports inform stakeholders about a hospitality venue’s operations and cover a range of elements such as staff, suppliers, partnerships, processes, and management. Each report can be tailored to a venue’s specific needs and goals.
Monthly management reports — why?
Financial reports are usually best suited to an annual timeframe, to meet legislative compliance. However, management reports should be more frequent. Timely reporting allows stakeholders to quickly address operational concerns like low staff numbers or capitalise on new venue or revenue opportunities.
How often hospitality venues should produce management reports depends on their size and processes. Monthly reviews provide actionable reporting without wasting time or money. It enables the venue to identify issues in a prompt manner and adjust for any seasonal or supply based issues.
They can help you identify issues such as:
- Whether product pricing is appropriate, after analysing adjusted net income.
- If the venue has enough employees to meet its strategic plans, and if so, what kinds of skills do new employees require and how much should they be paid.
- How effective ongoing marketing campaigns are, and whether the budget is appropriate to meet key venue objectives.
Three advantages of monthly management reports
Using monthly management reporting has many benefits, here are the top three.
1) Benchmarking performance – a monthly review of business management functions allows you to track goals that may be as important as financial performance, but don’t have the hard data parameters for easy comparison. Using a monthly management report, executives have evidence of progress (or lack thereof) over time.
2) Assessing the market – the hospitality industry is relatively unique in that venues often offer identical products. For example, hotels and pubs serve the same drinks (usually from the same suppliers) and very similar food options. That means hospitality businesses often compete on the effectiveness of work functions. A management report gives stakeholders the metrics needed to see the business’ natural evolution. This data can be used to compare what your competitors are doing and realign your strategy accordingly.
3) Enhanced internal communication – reports produced exclusively for internal use help to improve communication from business owners to strategic partners, investors, and management teams. It’s far simpler to execute the details of a hospitality business’ strategic plan with everyone on the same page. This alignment also helps to increase visibility across different functions within your hospitality business, ensuring all employees understand their role in supporting the venue’s core goals.
Monthly hospitality management reports are the
cornerstone of better decision making
Comprehensive monthly reporting is the cornerstone of better decision making. Impartial assessment of your hospitality business operations can be difficult. Partnering with industry experts can help you obtain independent and unbiased insights from your reporting data. Providing you with the in-depth analysis you need to help you achieve your business goals.
Pitcher Partners Newcastle and Hunter’s business advisory services collaborate with you to analyse your strengths and weaknesses. This helps provide you with the peace of mind that while you are focusing on what you do best, you are also taking advantage of opportunities as they appear and quashing issues as the arise. Pitcher Partners Newcastle & Hunter offers a 30-minute complimentary hospitality business health check to give you an overall view of your hotel’s financial health.
Contact our hospitality business services specialists today to learn how we can help you create actionable monthly management reports.
