Do you consider yourself organized with your property accounts? Or do you feel it is a mess to be able to pay everything on time?
Learning how to organize your property’s cash flow can be a challenge.
Realizing the difficulty of property owners in keeping their heads in place to pay all the seemingly endless bills, we have made this material so you can better understand how to organize your property’s cash flow!
What is cash flow?
Before knowing how to organize your property’s cash flow, we need to know what cash flow is!
Your cash flow is basically all the money coming in and out of your property. Does that mean everything? Yes! Cash flow is for you to have control of exactly all your expenses and everything you receive.
Now that you know what a cash flow is, the time has come to know how to get organized so you don’t lose sight of it.
Tips for organizing your property cash flow:
Choose a start and end day period to track your accounts
It does not have to be from the 1st to the 30th of each month – but it is important to maintain a periodicity to compare your cash flow month to month.
Read more: Keep up with bills with a Financial Calendar
Write down absolutely everything
To be able to organize your cash flow you need to make a habit of taking notes! Everything that goes in and out. If it has a $ on the front, write it down!
From the beer the guest has purchased to the bill to be paid to the supplier. Do it the way you feel most comfortable, online spreadsheet, paper or some software.
It’s very important to know what you have to pay, and the amount you have to do some maintenance or investments.
To make your life easier, try several ways to organize your cash flows, to find the one you like! Start by separating your fixed expenses and write down.
Never leave it for later. Among the 4 most common mistakes in managing a hostel, bed and breakfast, hotel or camping site is the lack of record of operations within your property. If you leave it for later, you end up forgetting or writing down an approximate value and not the actual one.
See your performance to learn how to improve
After recording all the notes made during the period you have chosen, you need to perform an analysis to see if you are having a failure, sometimes the billing looks good but you find out that it is not so! At the end of your review, you can also find out if you can make discounts or promotions on your property and know when is the best time to act!
Read more: Understand and Take Advantage of RevPar and Other Expected Revenue Indicators
Create a financial cushion
Do you know how much money your hostel, b&b, camping or hotel is getting?
One way to help with this is to first know how to analyze your occupancy rate and to know when is the best time to take advantage and make a financial reserve and be able to ensure that all bills will be paid even in low season! Those who use hqbeds have several reports available to understand their occupancy rate.
Read more: How to analyze your occupancy rate
Read more: Occupancy Rate: Essential Reports to Understand Your Business’s Market Performance
Consider using a software to work less and avoid errors
If you have difficulty working with many numbers you will begin to understand the importance of management software to have greater agility, organization and reliable data in a way that makes your life easier.
Have you thought about controlling everything right on your computer, tablet or smartphone? Get a free trial and feel what’s like to control your cash flow with one click!