Project Expense Feature Makes PIPs SimpleMay 8, 2017
As a hotel owner, the time comes when you need to upgrade, renovate, and build anew. Runaway costs and accounting challenges can hamper any improvement project, particularly long-term projects involving rebranding and large-scale design. The Inn-Flow Project Expense Feature will be your accounting roadmap through your next Property Improvement Plan (PIP).
Thoroughly manage projects within your accounting software and ensure you are properly budgeting for projects and not overpaying vendors.
“The key to smart spending (in PIPs) is to evaluate all of the issues affecting the physical aspects of the hotel to make sure that the available dollars are used in the correct manner. We know from experience that the more planning you do, the better the end result will be.”
– Jonathan Nehmer + Associates, Inc., global architecture, project management, and interior design firm
Inn-Flow’s project expense feature helps you control your construction expenses in four ways:
- Project Budgets: By specifying budgets for each project and following expenses closely, you limit the possibility of project costs getting out of hand. Decide up front which hotel’s chart of accounts (COA) are included in each project and map out your budget.
- Vendor Contracts: Articulate the vendors who will fulfill COAs and include amounts according to your contracts. By creating contractor agreements and tracking transactions, including change orders, from within your database, you now have the tools to monitor the entire project budget and expenses. All change orders and any physical documents related to the project can easily be uploaded to your projects, so everything is conveniently held in a single location.
“The best way for owners to prevent spending excesses is to get a good general contractor involved in the project early. Contractors will watch the purse strings and timeline and get whatever professionals involved that they need. You want to maintain the design, watch the budget, and do whatever you can to increase the property’s sustainability.”
– Cicero Development Inc, large-scale renovation company serving every hotel brand in the hospitality industry
- Linking Payments to Projects: Linking payments to budgets and contractor agreements is simple because you are using your existing invoice entry workflow to link invoices to projects. With your payments and vendor contracts linked, you can ensure payment accuracy.
- Analyzing Payments Against Contracts and Budgets: Run reports to show how expenses line up with your contractor agreements and project budget. Make sure everything was inputted properly, and decide if you are spending too much or if you are right on track at this point in the project. Additionally, use the reports as contracts for vendors and facilitate construction draw requests to the bank.
Budgets, vendor contracts, payments, reports all in one place. Managing your projects couldn’t be simpler. Using Inn-Flow’s project expense feature, everything is integrated and accessible from your accounting module.