Here are BMT Tax Depreciation’s top five tips on how to improve cash flow.

Tip 1 – Partner with local businesses

Throughout the pandemic we have learnt the importance of supporting local businesses. Hoteliers can partner with local businesses to offer discounted experiences and services to guests. These businesses can include museums, cinemas, restaurants, zoos, spas and countless more.

Even if no actual money is exchanged between businesses, promotional material such as brochures and flyers can be exchanged and advertised. These local advertising opportunities can increase booking growth and improve cash flow.

Tip 2 – Implement and optimise technology

The use of websites and social media platforms to advertise and secure bookings are essential. But implementing additional guest-facing technology can not only reduce labor costs but also provide flexibility and inclusivity to guest services.

Mobile check-ins and check-outs can streamline a guest’s arrival and departure and having devices in each room for room service or to book services within the hotel can be effective and improve their take up.

Tip 3 – Incentivise staff

There is the opportunity to make more money by upselling on rooms and services, and staff may be encouraged to more passionately upsell if incentives are available.

Offering staff incentives can be an effective way to boost morale and achieve results. Incentives can be anything from gift vouchers to a paid day off or even a weekend getaway. There’s also the option of offering group incentives such as a lunch or staff party if the goal was reached as a group effort.

Tip 4 – Take advantage of quiet periods

Every hotel will experience quiet periods where the time of year impacts guest numbers, such as in the off season, when there is a lack of events or when schools are in session.

Using spaces of a hotel during these quieter times can boost not just cash flow but community engagement. If there is a pool or sports facilities within the property, hoteliers can partner with local schools or community centres and host classes for a fee.

Offering rooms for day use at negotiated rates can also be effective since this type of stay is popular for travelers, businesspeople and professionals with working from home arrangements wanting a change of scenery.

Tip 5 - Claim depreciation

Claiming depreciation is a way to boost cash flow without spending any money.

Depreciation is the natural wear and tear of a building and the assets within it over time. The Australian Taxation Office (ATO) allows owners of income producing properties to claim this depreciation as a tax deduction.

There are two types of depreciation deductions available to claim. Capital works (Division 43) is claimed on the building’s structure and the items that are permanently fixed to the property. And plant and equipment depreciation (Division 40) can be claimed on the easily removable and mechanical items.

All commercial properties regardless of age hold depreciation, failing to claim depreciation means missing out on thousands of dollars.

BMT Tax Depreciation has been the commercial depreciation specialist for over twenty years. To learn more about commercial depreciation contact an expert on 1300 728 726 or Request a Quote.

The views expressed in this article are an opinion only and readers should rely on their independent advice in relation to such matters.

More from BMT:

Hoteliers can claim more this tax time - BMT

Frequently asked hotel depreciation questions answered - BMT