Are Cash Outflows and Expenses the Same?
Introduction The purpose of this article is to shed light on the meaning of the terms: expense and cash outflow from an accounting perspective. More specifically, it discusses the similarities and differences of these terms within a business context. In addition, it uses examples in order to elaborate clearly this challenging issue for working professionals and students. Definitions Expense: The value of the inputs (e.g. food and beverages) that are being used for revenue-generating activities. Cash outflow: A cash payment a business makes to ... Continue Reading
Which Hospitality Business Should I Buy?
Considering Cost Structure Before Investing In A Hospitality Business Have you ever thought of the importance of the cost structure before making an investment decision? Do you know how cost structure may affect profitability? Frequently, people may prefer to acquire an existing restaurant rather than starting one from scratch since it has an established clientele. However, before you make a decision to buy a restaurant, you need to consider several factors. One of them is the restaurant’s cost structure. What Is The Cost Structure? Cost structure ... Continue Reading
How Can I Value A Hospitality Business?
Owner Benefit: A Valuation Method for Small and Medium Size Hospitality Businesses You are the owner and manager of a small restaurant, hotel, spa or other hospitality operation and you are thinking of selling your business. But, now, you are facing several dilemmas. How much should I sell my business for? Do I really know the financial benefits I receive from my business? Is it only the profits I get from it? How do I determine its fair value? Do I need to hire a ... Continue Reading