Today's Hotelier - March 2018 - 46

LEADERSHIP
FINANCIAL LEADERSHIP

Financial statement analysis
and your hotel career
5 steps to get on top of your numbers and be a more effective leader.
by DAVID LUND

I

F YOU GOOGLE THE WORDS
"financial statement analysis,"
you will get a long list of definitions like this one by Wikipedia:
"Financial statement analysis
(or financial analysis) is the process of reviewing and analyzing a company's financial statements to make better
economic decisions. These statements
include the income statement, balance
sheet, statement of cash flows, and a
statement of changes in equity. Financial
statement analysis is a method or process
involving specific techniques for evaluating risks, performance, financial health
and future prospects of an organization."
What it will mean to you as a leader
in the hospitality business is exactly the
same and then some.

4 6  | MARCH 2018 | TODAYSHOTELIER.COM

"What information can I get from my
monthly profit and loss (P&L) to understand my business and make better
decisions?" and "What's going on in my
business?" The latter is the better, more
applicable, piece for an operations manager who has a healthy sense of curiosity and a leader who wants to make a
difference.
Anyone can look at the statement
and see that one number is higher than
another. Anyone can see the variance
between the budget and actual for an
expense line or departmental result.
Most managers can see the discrepancy
between this year's result and last year's.
It also does not take an accountant to see
the variance between the actual and forecast results and do something about it.

Seeing the variance is one thing. Doing
something about it is quite another. Most
leaders will do nothing about it unless
they are specifically told to do so. Most
leaders will not naturally go there. Why
is this the case?
Leaders typically see that variance
as someone else's responsibility, perhaps thinking that accounting will
take care of it.
Leaders are too busy running their
hotel to bother with the numbers.
These attitudes may cause problems
because the messes do not fix themselves. The messes will only ever be
corrected if there is a joint effort. The
problems reflected in the variances on
the financials run deep. Is it the budget
or forecast that is inaccurate? Is it the


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Table of Contents for the Digital Edition of Today's Hotelier - March 2018

Letter From the Chairman
Letter From the President & CEO
#AAHOACON18 Spotlight
Government Affairs & Advocacy
The C-Suite
Common Ground
Elevate Yourself to a Higher Role in the Industry
Next-Level Housekeeping via Technology
Mentoring Matters
Small Business
Finance
Marketing
Technology
Compliance & Legal
Leadership
Guest Experience
Aahoa Founding Members
Classifieds
Advertiser Index
Back of the House
Today's Hotelier - March 2018 - Intro
Today's Hotelier - March 2018 - cover1
Today's Hotelier - March 2018 - cover2
Today's Hotelier - March 2018 - 3
Today's Hotelier - March 2018 - 4
Today's Hotelier - March 2018 - 5
Today's Hotelier - March 2018 - 6
Today's Hotelier - March 2018 - 7
Today's Hotelier - March 2018 - 8
Today's Hotelier - March 2018 - 9
Today's Hotelier - March 2018 - Letter From the Chairman
Today's Hotelier - March 2018 - 11
Today's Hotelier - March 2018 - Letter From the President & CEO
Today's Hotelier - March 2018 - 13
Today's Hotelier - March 2018 - #AAHOACON18 Spotlight
Today's Hotelier - March 2018 - 15
Today's Hotelier - March 2018 - 16
Today's Hotelier - March 2018 - 17
Today's Hotelier - March 2018 - Government Affairs & Advocacy
Today's Hotelier - March 2018 - 19
Today's Hotelier - March 2018 - The C-Suite
Today's Hotelier - March 2018 - 21
Today's Hotelier - March 2018 - Common Ground
Today's Hotelier - March 2018 - 23
Today's Hotelier - March 2018 - Elevate Yourself to a Higher Role in the Industry
Today's Hotelier - March 2018 - 25
Today's Hotelier - March 2018 - 26
Today's Hotelier - March 2018 - 27
Today's Hotelier - March 2018 - Next-Level Housekeeping via Technology
Today's Hotelier - March 2018 - 29
Today's Hotelier - March 2018 - 30
Today's Hotelier - March 2018 - 31
Today's Hotelier - March 2018 - Mentoring Matters
Today's Hotelier - March 2018 - 33
Today's Hotelier - March 2018 - 34
Today's Hotelier - March 2018 - 35
Today's Hotelier - March 2018 - Small Business
Today's Hotelier - March 2018 - 37
Today's Hotelier - March 2018 - Finance
Today's Hotelier - March 2018 - 39
Today's Hotelier - March 2018 - Marketing
Today's Hotelier - March 2018 - 41
Today's Hotelier - March 2018 - Technology
Today's Hotelier - March 2018 - 43
Today's Hotelier - March 2018 - Compliance & Legal
Today's Hotelier - March 2018 - 45
Today's Hotelier - March 2018 - Leadership
Today's Hotelier - March 2018 - 47
Today's Hotelier - March 2018 - 48
Today's Hotelier - March 2018 - 49
Today's Hotelier - March 2018 - Guest Experience
Today's Hotelier - March 2018 - 51
Today's Hotelier - March 2018 - 52
Today's Hotelier - March 2018 - 53
Today's Hotelier - March 2018 - Aahoa Founding Members
Today's Hotelier - March 2018 - 55
Today's Hotelier - March 2018 - Classifieds
Today's Hotelier - March 2018 - 57
Today's Hotelier - March 2018 - 58
Today's Hotelier - March 2018 - 59
Today's Hotelier - March 2018 - 60
Today's Hotelier - March 2018 - 61
Today's Hotelier - March 2018 - 62
Today's Hotelier - March 2018 - Advertiser Index
Today's Hotelier - March 2018 - 64
Today's Hotelier - March 2018 - Back of the House
Today's Hotelier - March 2018 - 66
Today's Hotelier - March 2018 - cover3
Today's Hotelier - March 2018 - cover4
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