The Cp³ Accounting System
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The CP³ Accounting System
Sabra Warden
HTT/230
January 14, 2016
Erik Thompson
The CP³ accounting system is a management tool that has become increasingly popular with hotel management companies throughout the years. It consists of components such as a monthly commitment budget, a purchase order system, a daily payroll system, and a daily profit and loss statement (University of Phoenix, n.d.).
There are several advantages that the CP³ accounting system offers. For instance, the general manager and department heads can be in complete control of the timing and quantum of expenses that appear on their profit and loss statements, resulting in no surprises created by any invoices or journal entries that may arrive late. Payroll control is also an advantage when it comes to overtime expenses; department heads are easily able to make any changes within the weekly staffing schedule before it's far too late. Flexing is another advantage as far as revenues go for the month, especially when a company may be running behind the forecast. The department head can simply hold back individual purchase order requests and make cutbacks in labor hours to meet budget cash flow. The CP³ accounting system also brings focus to teamwork since a certain amount of peer pressure is created by the system, this is because the department heads able to see how their peers are faring with the departmental budgets throughout the day. Another advantage would consist of an alignment of interests, in which there is a more active participation of each management team member, assuring that the numbers on the daily profit and loss statement are most accurate. Ultimately, as ownership and administration receive their copies of the monthly profit and loss statement directly at the end of the month; their able to react to problems without further delay, resulting in timeliness of financial data (University of Phoenix, ...
Sabra Warden
HTT/230
January 14, 2016
Erik Thompson
The CP³ accounting system is a management tool that has become increasingly popular with hotel management companies throughout the years. It consists of components such as a monthly commitment budget, a purchase order system, a daily payroll system, and a daily profit and loss statement (University of Phoenix, n.d.).
There are several advantages that the CP³ accounting system offers. For instance, the general manager and department heads can be in complete control of the timing and quantum of expenses that appear on their profit and loss statements, resulting in no surprises created by any invoices or journal entries that may arrive late. Payroll control is also an advantage when it comes to overtime expenses; department heads are easily able to make any changes within the weekly staffing schedule before it's far too late. Flexing is another advantage as far as revenues go for the month, especially when a company may be running behind the forecast. The department head can simply hold back individual purchase order requests and make cutbacks in labor hours to meet budget cash flow. The CP³ accounting system also brings focus to teamwork since a certain amount of peer pressure is created by the system, this is because the department heads able to see how their peers are faring with the departmental budgets throughout the day. Another advantage would consist of an alignment of interests, in which there is a more active participation of each management team member, assuring that the numbers on the daily profit and loss statement are most accurate. Ultimately, as ownership and administration receive their copies of the monthly profit and loss statement directly at the end of the month; their able to react to problems without further delay, resulting in timeliness of financial data (University of Phoenix, ...