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When your hotel or business is generating a lot of revenue, especially if it is more than your budget, it is easy to overlook a few extra expenses. In some cases, the extra expenditures may be incidental or quite large. Regardless of the costs, when the revenue is there, these expenditures may be “hidden” from ownership or leadership if the bottom line is also achieving budget or better. As the saying goes, “Revenue hides all sins!”

There is another saying that offsets this premise – “The devil is in the details.” Knowing where to look for the devil is another issue altogether. In any detailed profit and loss statement, there are hundreds of line-items with potentially dozens of invoices posted to each. Reviewing every single one would be painstaking and timely. However, having the right tool to help you scour the P&L for variances would give you a tremendous advantage in saving both time and money for your organization.

Revenue will always be important, and most organizations have procedures in place to analyze data such as revenue streams, market segments and revenue sources in a variety of ways. Yet when it comes to labor and line-item expenses, most organizations fall short. This is where a tool like ProfitSage can help.

ProfitSage is currently used by more than 85 different companies, representing more than 3,000 different business units within the hotel, senior living and travel industries worldwide. The beauty of ProfitSage lies with its simplicity. It is a cloud-based system that allows users to access the data for their organization from any device. It provides high-level summary data in a dashboard setting and provides hundreds of detailed reports which are easy to understand and analyze at a glance.

Using a tool like ProfitSage can help you see trends in all levels of the P&L, including revenue, labor and line-item expense. You can follow key performance indicators (KPI) at a glance to spot any abnormalities or trends. Since the data is available in real-time, you can also make appropriate changes early in your financial cycle in order to have a positive impact at the end of a month.

One company told me they were struggling with forecasting results. Their company-wide variance from the start to the end of the month was averaging 18%. With a little training on ProfitSage, they were able to reduce their variance from 18% down to 4%. One can only imagine that the monthly calls with company ownership became much more collegial as a result!

So, to sum up these points, always remember to look beyond revenue. Instead, be sure to analyze EVERYTHING using the right tools and with the purpose of being proactive instead of reactive!

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ProfitSword to Release Major Enhancements to Award-Winning Business Intelligence Technology Platform at HITEC Orlando 2022

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