Business
In this episode I give a quick overview of the Financial Statement, also known as you Profit and Loss statement or Income Statement. I review the Summary page and detail pages down the GOP line. Most General Manager are responsible for topline revenues all the way down to the GOP line. Rarely do you have any responsibility below that line. You may see these numbers on the P&L but the majority are fixed costs that never change except for FFE Reserve and Management Fees IT WILL HELP IF YOU HAVE A P&L IN FRONT OF YOU TO HELP YOU GET A VISUAL OF WHAT I’M TALKING ABOUT. DEPENDING ON YOUR COMPANIES P&L FORMAT IT MAY SEEM DIFFERENT THAN WHAT I AM EXPLAINING. A P&L OVERVIEW On the summery page of the P&L, you may see MTD and YTD totals column presented as a dollar amount, as a percent of gross sales or gross revenues Sometimes it will also have a per occupied cost as well. On the detail pages that are broken down by department, the ratio most commonly used is CPOR or…… Cost Per Occupied Room You can benchmark your current P&L against the approved budget to see how well you did with revenues and expenses to GOP but I’m not going to talk about BENCHMARKING today but that will be explained in another episode.