14 Finance and Accounting Best Practices to Improve Your Operations

NCCU Author/Contributor (non-NCCU co-authors, if there are any, appear on document)
Ed Rehkopf, Donor to Hospitality and Tourism Administration (Creator)
North Carolina Central University (NCCU )
Web Site: www.nccu.edu/academics/library/

Abstract: General managers should always conduct monthly reviews of operating statements withdepartment heads.In order to ensure that the club meets the financial objectives of its annual operating budget, it isimperative that all department heads monitor their monthly performance closely and beprepared to answer questions about their department’s performance and give reasons for anysignificant variance from budgeted amounts.On a monthly basis after the final statement is prepared and distributed, the controller shouldset up a schedule of meetings for department heads to meet with the general manager andcontroller to review their department’s performance. When attending this meeting departmentheads must be prepared to present plans to remedy significant or ongoing shortfalls in revenueor overages in expense categories.The general manager’s ongoing interest in meeting performance expectations and therequirement that department heads explain, and remedy significant variances or adverse trendssends a strong message regarding the importance of meeting budget. Establishing such amonthly review of operating performance is a management discipline well worth implementing(see PCPM, Insights and Ideas, Performance Management- An Essential Discipline for Successfor more detail).

Additional Information

Language: English
Date: 2021

Email this document to