Understand Your Business Financial Scorecard in 2021

By Kaitlin Dunn, Writer, Hospitality Sales & Marketing Association International (HSMAI)

As part of Recovery Connections — a key feature of HSMAI’s Road to Recovery program — HSMAI is offering On-Demand Learning, a library of short recordings and how-to videos for hospitality sales, marketing, and revenue optimization professionals. That includes “Develop Your Business Acumen: Targeting Business Priorities,” which is ideal for any hotel professionals who want to start the new year by learning more about business acumen or working toward the CHBA certification.

Here is a key takeaway from the video:

Combine your three separate financial statements to get your business financial scorecard. You’ve got your income statement, balance sheet, and cash-flow statement. Each one provides different information. The income statement tells you how much money came in, what your expenses were, and what profit remains. The balance sheet shows the total value of the business and assets and how that value is divided between what the business owes to others and the net share that belongs to the owner. The cashflow statement shows how much cash you have on hand, including where it came from, where it was spent, and how much is left over.

Together, these statements give you the business financial scorecard, showing what happened in the past and where your business stands in the present. When you use this to target business challenges and opportunities, these statements become future-oriented, pointing out the next priorities for improving business results.

Recovery Connections is a weekly program with sales, marketing, and revenue optimization tracks that mix best-practices presentations with interactive small-group discussions. Sign up to watch past sessions, access On-Demand Learning — and register for future sessions.

The CHBA (Certified in Hospitality Business Acumen) designation program provides professional training in hospitality business acumen. Learn more — and register to take the course.

Categories: Sales
Insight Type: Articles