Pre-Opening Budget v Cashflow model


Joined
Jun 11, 2017
Messages
1
Reaction score
0
Country
United Arab Emirates
Hi,
My company has recently taken on the management / operations of a small hotel on behalf of the owner.
The hotel is currently closed for renovations and will re-open in a few months.
I have been asked to prepare a Cashflow model for the owners, and also to track the pre-opening expenses versus the Pre-Opening Budget that has been approved by the owners.
There are some ongoing operational costs being incurred at the hotel (staff payroll, staff meals, maintenance, utilities etc.)
Then outside of this are the Pre-Opening Budget expenses such as new IT infrastructure, Sales & Marketing activities etc.

My question to you is, should I be trying to 'match' the Cash outflows with the Pre-Opening Budget tracker?

For example, how should I reflect the VAT on purchases, where the gross amount is included in the cash outflows, but only the net amount should be included in the POB?

Also, what about non-cash items such as accruals & prepayments, inventory movements etc.? These items will be recognized in the POB but not the cashflow model, right?

Appreciate your thoughts on this as I am getting confused!

Thanks.
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Accounting Modeling 1
Budgets & Cashflow 3
Modified Altamn's model 4
budget income in cashflow 0
UK Modelling a Convertible Loan 1
Canada 52 Week Cashflow Projection 2
USA Pre-LLC expenses 2
UK Supplier Rebate modelling (Excel) 0

Top