After a year of financial hardship, Christmas 2020 was billed as the season of opportunity for hospitality. But the introduction of tier systems and festive period restrictions caused major setbacks.
This year, however, customers are set to make up for lost time – a great chance for businesses to cash in and progress with pandemic recovery. Yet it won’t be easy. Staff shortages, supply chain issues and inflation will certainly make for a volatile few months.
To decipher the most effective way to benefit from the period, your finances need to be in the right place. And this blog has some advice on just that…
With business set to boom in the coming months, your venue will be busier. Orders are set to roll in and it will be all hands to the pump. This means hiring the right number of staff and stocking up on the inventory you need – keeping a close eye on your balance sheet as you go.
Whilst that might sound like just any other normal Christmas, other looming complications are at play. Firstly, there are the staff shortages caused by pandemic-induced career moves. Brexit-related supply chain issues and inflated prices have also made it harder to get the right produce at an affordable price.
For many, this has resulted in depleted workforces, limited menus, and an underwhelming profit margin.
Clarity in your accounts
In these conditions, financial planning and predictions are difficult. Venues must chop, change and adapt their strategy to the state of play.
Of course, this unpredictability could lead some businesses to gamble on expenditure in the run-up to Christmas. How many extra staff do you need to hire? Can you afford to take them on, and will you be able to keep them into 2022? Can you access and/or afford the materials needed to serve the masses over the busy period?
Each hospitality venue will experience – and react to – the challenges differently in the coming months. Some may opt to plug the gaps with contingent workers. Others will forge deeper relationships with local producers. But one thing applies to all: with so many moving parts at the busiest time of the year, your accounts need to be laid out with clarity and managed to a tee.
Your profit and loss account, balance sheet and cash flow statement need to be organised and evaluated in order to maximise the season. All the while, you’ll need to factor in the staffing, supply chain and inflation issues we mentioned – and, as ever, leave a little room for any other unexpected events.
Navigate any situation with Nabarro Poole
Naturally, this is a lot to handle whilst trying to run a venue. And that’s why a professional management accounts service is invaluable.
At Nabarro Poole, we offer expert monthly and quarterly management accounts as well as business advice. We take stock of your situation before it plays out, providing you with the financial clarity and peace of mind to move forward with confidence. In addition, we offer budgeting, forecasting and related services to help your hospitality business get to where it needs to be.
Find out more about how we can help you capitalise on Christmas and beyond – contact us today.