Hotel accounting and hotel bookkeeping are different will all types of hotels and companies, but for the sake of this article we will focus on a traditional large-scale hotel.
Hotel bookkeeping primarily entails recording everyday transactions such as taking reservations at the front desk or food and drink orders from guests; these transactions then need to be posted into the general ledger.
Hotel accounting, however, is much more complex as it involves analysis of daily transactions as well as minutely detailed reports regarding the financial health of a given property. A quick example would be reporting how many pillow mints were purchased by the housekeeper last month; this information might seem irrelevant but over time can help determine which department needs more budgeting (crew members who purchase more hotel supplies are likely under budget) or which department needs to be cut back on spending (crew members who are purchasing too many personal items can be flagged as unnecessary expenditures).
Most large-scale hotels will have their own individual accounting departments, but smaller companies may choose to outsource all of their accounting work. The decision to do so really depends upon the size of the corporation and how much money is being handled by that one location.
It is essential for a business to keep track of its financial information – otherwise it could find itself in serious trouble. A hotel must collect money from guests every day in order stay afloat; therefore, daily transactions are recorded meticulously by its bookkeeper or accountant. Hotel accounts need to turn profits each month, however, which is why its accounting department must review and analyse different financial reports. Traditionally, the hotel’s CEO or someone of that sort would oversee this work; but an individual can also be hired that specializes in hotel accounts and is capable of producing accurate reports regarding a property at any given time.
Both hotel bookkeeping and hotel accounting are essential to a successful business. Without properly recording transactions every day it may not be able to keep track of its actual finances, while without an accurate understanding of those finances it could find itself in some serious trouble as well – especially if running a large-scale hotel with hundreds of employees. A company needs an accountant who has gone through rigorous training as well as a bookkeeper who knows what specific information from those daily transactions needs to be recorded.
Without a detailed understanding of where the money has been going every day the company will lose track of certain transactions that leave it at risk for losing revenue or even going into debt. Likewise, if it does not have a good report from an accountant about how much money it has left over every month users may find themselves struggling to keep up with their bills!
In general, hotel accounting is more complex than simply making daily transactions while recording them in one central ledger; but at larger companies this distinction can be blurred because there will usually be someone overseeing each department who ensures they work together as seamlessly as possible.
Bookkeeping and accounting are both important components of a hotel’s financial health, but it is especially necessary for large-scale hotels to keep track of their money every day in order to not lose out on any potential revenue. In smaller or limited service hotels, however, it may be better off outsourcing the work to an accountant that specializes in this sort of work – not only will they have more experience with finance they’ll also be able to use software programs designed specifically for hotel accounting and bookkeeping. This is a win-win situation all around!
The one thing that a hotel needs is a good accounting software. The right software like Hotelier Books will help in making sure that the finances are all in order and keep track of expenses, revenues, and much more. It also helps when it comes to taxes because you can easily see what you owe or have been paid from your guests and customers.
With this type of system, you’ll be able to make more accurate budgets with real data from past history data instead of estimates or guesses based on assumptions about what future customers might spend during their stay. Using an automated system will also allow you to provide better customer service because you won the time lost in handling accounts and organizing books.
Interested to see Hotelier Books in action? Schedule a demo now!https://hotelierbooks.com/demo