CHECKBOOK MODEL TRAINING

1. CHECKBOOK MODEL TRAINING

2. OVERVIEW • PROFITSWORD IMPORT • SUMMARY WORKSHEET – ADJUSTING FORECAST • DEPARTMENT WORKSHEETS – INVOICES & PO’S • ORIGINAL VS. FLEX TARGETS • PRO-RATE, ITEMIZE & PR-PLUS • GM ADJUSTMENTS • ENTERING PURCHASES • REQURIED INFORMATION • HIGHLIGHTING ITEMS • RECURRING ITEMS • RECAP WORKSHEET • SUMMARY GRAPHS

3. PROFITSWORD IMPORT • Configuring the model • Data file will be loaded to TrueShare at the end of each month by your senior accountant. • Copy all populated cells in this report starting with Company going through the last populated value in the Amount column. • Paste on the ProfitSword tab of the checkbook, cell A5. • You can also hit the Import button on the Profitsword tab, and search for the data file. Using this approach requires the file be saved to your computer from TrueShare. ProfitSword Data File

4. SUMMARY WORKSHEET • After you have loaded the forecast, you will want to go to the Summary Worksheet to set the month & adjust the forecast. • On this worksheet, you will need to set the date in cell X4. Periodically through out the month you will need to update the date to the current month in order for the report to pull the correct information. • Enter name of hotel in cell X3.

5. SUMMARY WORKSHEET • ADJUSTING FORECAST • Once you set the date the Budget or Forecast showing on line 8 will be for the month that was entered. • Below the Budget/Imported Forecast line is the current forecast line.

6. SUMMARY WORKSHEET • ADJUSTING FORECAST • Below the Budget/Forecast line is the current forecast line. • The current forecast line is where you enter and update how you believe your hotel is going to finish for the upcoming month.

7. SUMMARY WORKSHEET • ADJUSTING FORECAST • Below the Budget/Forecast line is the current forecast line. • The current forecast line is where you enter and update how you believe your hotel is going to finish for the upcoming month.

8. SUMMARY WORKSHEET • ADJUSTING FORECAST • Line 10 is the flex line. The flex line tells the model how to adjust expenses based on comparing the current forecast to the budget/forecast. • The flex is calculated by dividing the Current Forecast(line 9) by the Budget/Forecast (line 8)

9. DEPARTMENT WORKSHEETS All the department worksheets are identical. The first step is to configure the department worksheets for your hotel. This configuration deals with each general ledger account and starts in column H.

10. DEPARTMENT WORKSHEETS • ORIGINAL OR FLEX • The first question to answer about each general ledger account is whether to use the original budget or the flex budget. • The flex budget for an account will be increased or decreased based on your flex amount on the summary worksheet.

11. DEPARTMENT WORKSHEETS • ORIGINAL OR FLEX • Typically you would use the original budget on expenses that are going to stay the same no matter how low or high your business volume . A good example of a account that should use the original budget is Cable & Satellite TV.

12. DEPARTMENT WORKSHEETS • ORIGINAL OR FLEX • Flex budgets are used for expenses that increase/decrease as business volumes change. • Once you have decided if an account should use the original or flex budget, you can change the account if necessary in column L.

13. DEPARTMENT WORKSHEETS • PRO-RATE, PR-PLUS & ITEMIZE • The next question you need to answer is how the model is going to handle invoices. • There are 3 options in regards to invoices. They are pro-rate, itemize & pr-plus.

14. DEPARTMENT WORKSHEETS • PRO-RATE, ITEMIZE & PR-PLUS • Prorate takes the adjusted target and spreads it evenly over each day of the month. • Itemize enters the entire amount on one day

15. DEPARTMENT WORKSHEETS • PRO-RATE, ITEMIZE & PR-PLUS • PR-PLUS takes the adjusted target and spreads it over each day of the month. Then any invoices entered would be added on top of this amount.

16. DEPARTMENT WORKSHEETS • GM ADJUSTMENTS • GM adjustments are manual changes that are made to the budget expense by line item. • For example, if you had to make an emergency linen purchase. In order to cover the linen purchase in your check book, you may want to move money from guest transportation.

17. DEPARTMENT WORKSHEETS • GM ADJUSTMENTS • The first step in making a GM adjustment to an expense is to unlock the worksheets. • To unlock the worksheets, you need to click on the button labeled unlock. These buttons are located near cell F3. • When prompted enter the password which is “secret.”

18. DEPARTMENT WORKSHEETS • GM ADJUSTMENTS • The model will then unlock the department worksheets and send you to the budget worksheet. • Select the department worksheet that you want to adjust. • Go to the GM adjust column (M), find the account you want to adjust & enter the adjustment.

19. DEPARTMENT WORKSHEETS • GM ADJUSTMENTS • After you have completed the adjustments. Select the Lock button on any department worksheet located in cell F3.

20. DEPARTMENT WORKSHEETS • Entering Invoices & PO’s • The required information is the Account, Vendor, Date, PO# and Total Cost if the information is available. Items purchased is an optional field. • Please note that while most accounts appear in this model, cost of food & beverage do not appear and should not be tracked in the model. Utilities are also not tracked in the model. • The Account is a drop down menu that you select the applicable account number.

21. DEPARTMENT WORKSHEETS • Entering Invoices & PO’s • Date is the invoice date or date the purchase order is placed. • PO# can also be the invoice number. • Total cost is the amount of this invoice that is expensed to this account. (you will need to enter this information for each different expense account for an invoice.)

22. DEPARTMENT WORKSHEETS • Entering Invoices & PO’s • You can highlight information by clicking on the information that you wish to highlight and clicking on the highlight button in cell F3. • You can remove the highlight by clicking on the highlighted information and then clicking the highlight button again.

23. DEPARTMENT WORKSHEETS • Entering Invoices & PO’s • One use for highlighting would be to highlight the invoices that have been entered into M3. At the end of the month, you can review the checkbook and determine which invoices have not been entered( un-highlighted items). These items then could be entered or copied to an accrual entry.

24. DEPARTMENT WORKSHEETS • Recurring Items • Before starting a new month you will need to clear the department worksheets of the current month data. • To clear the data, you will need to click on the erase button located in cell F3.

25. DEPARTMENT WORKSHEETS • Recurring Items • In order to not have to manually re-enter purchases that you make every month, you can use the Recurring function in the model. • To start this process, click on the recurring button which will take you to an area that looks exactly like the area you normally use to enter invoices.

26. DEPARTMENT WORKSHEETS • Recurring Items • In this area you would enter the information that you want to appear every month. • It is not necessary to fill out all the data, for example you might want to leave the amount blank as it could change every month.

27. DEPARTMENT WORKSHEETS • Recurring Items • Once you have finished entering the recurring invoices for the month, you click on the blue arrow that is above items purchased. • The data that you have entered in the recurring invoices area will appear every month when you select the erase button.

28. RECAP WORKSHEETS • Overview • The recap worksheet is summary of the data for the current month. • To insure that this information is correct, you will need to verify that the date on line 4 is accurate. • If you need to update the date, you can do so on the Summary worksheet.

29. RECAP WORKSHEETS • TOTAL EXPENSES • At the top of the sheet is a section labeled Total Expenses, this summary includes all departments and will show the total funds available to spend for the entire hotel. • Starting on line 9, there is a summary by department that gives you summary information per account.

30. SUMMARY GRAPHS • GRAPHS • If you prefer to view the summary information there is a graph on the Summary Worksheet below the area where you enter your updated forecast.