Originally developed in the USA, the principles have been widely adopted throughout the international hotel industry.
The Uniform System is based on dividing the operating departments of the hotel into those with identifiable income, cost of sales, staff and other direct expenses (eg rooms, food & beverage), those with specific functions and staff and expenses which support the operations (eg Administration, Sales & Marketing), and costs which are directly controllable by management (eg Rent, Rates, Insurance).
Benefits of adopting the Uniform System include:
- widely used, managers, accountants and others within the hotel industry have become familiar with the terminology and formats
- budgeting, monitoring and business decision making is facilitated
- information and statistics based on Uniform System principles facilitate comparisons and trend measurements across multiple units, between companies and across the industry
- participation in independent benchmarking studies is possible
- investors, lenders and advisors involved in the industry often expect accounts and reports to have been prepared in the Uniform System format
- many leases, franchise and management agreements will refer to Uniform System terminology and accounts formats.
How can CHR Hospitality can help?
CHR Hospitality has experience of preparation of hotel management accounts in Uniform System format, and has access to expertise in issues related to compliance and interpretation. Assistance with implementation of the Uniform System and training in its use and interpretation can be provided.
CHR Hospitality systems ensure that hotel management accounts are aligned with the requirements for financial accounts needed for balance sheet, cash flow, statutory, tax and other financial reporting purposes.