Carmen Accounting Software helps Hoteliers manage a more profitable business.
Before the COVID-19 pandemic caused a dramatic downturn in 2020, the hospitality industry, along with tourism, had been increasing in recent years across Asia and the hospitality industry was experiencing a surge in investment.
To meet the rising demand, more and more hotels were being built. To increase revenues, business owners are creating more and more recreational properties.
Now some parts of the world have reopened, steadily recovering the tourism industry. The hospitality business will reclaim its former grandeur once the pandemics subsides, and that people feel safe to travel again.
Hospitality companies are investing heavily in their projects and face an extremely important financial burden to manage their properties towards profit. One of the top priorities is to make certain that their finances are in order. All Hoteliers hire accounting professionals and have a significant accounting structure to oversee their financial performance. All financial transactions are recorded, summarized, reported on, and interpreted by these accountants.
Hotel owners and the whole management team know that accounting is given top priority in the hotel industry, regardless of the size of the organization. Choosing the right Hotel Accounting Software is important and too often considered in the last minute of the IT infrastructure vendor selection process.
After all, financial reports and other associated data are used by hotel owners to make business decisions. Balance sheets, income statements, cash flow statements, and other financial statements are crucial and the integration of all systems to provide accurate data is paramount.
Keeping track of all of the hotel’s transactions
Hotels require many systems and software to manage all of the operations of such a business, from Online reservations, Guest experience from check-in to check-out, F&B and of course all of the back office operations.
Key Performance Indicators are required by gathering data from the different systems in place. Detailed financial reports are necessary for all businesses and hotels are no exception. The ability to have all the data from all different systems in place, provides the tools for the Management team to keep track of all financial transactions, whether completed or pending. These reports are constantly scrutinized by business owners in order to stay informed.
The integration of these systems is important and using the appropriate and flexible Hotel Accounting Solution is a must.
Hotel owners hold their management team responsible for all transactions. The accounting team is also in charge of managing payables and receivables, analyzing expenses, keeping track of the general ledger, and checking inventory, just to name a few.
The accounting department is also keeping an eye on the following:
- recurring bills and dues
- sales and journals approvals
- occupancy rate
- average daily rate
- revenue per available room
- guest satisfaction
- competition analysis
- variance analysis
- labor management
- operating budgets
- financial benchmarking
Simultaneously, hotel accounting focuses on time and payroll administration, daily activity tracking, and profit forecasting.
The Advantages of Accounting Automation in the Hotel Industry
Hoteliers usually have a substantial accounting team involved in managing and maintaining accurate financial tracking and reporting. Many still have manual entries and face challenges with regards to accuracy and efficiency.
Most Hotels now choose to invest in the implementation and use of Hotel Accounting software. Accounting staff and management can use this technology to keep track of daily finances and develop accurate income and spending forecasts.
Also, the main benefit of is that the entire accounting process is automated when using a Hotel accounting solution. Human mistake and paperwork are reduced or eliminated and financial reports can be delivered in a timely manner.
Aside from efficiency, employing accounting software provides hotels with a slew of other advantages.
Providing a means for hotels to save money
When it comes to managing accounts and finances, hotel owners can save a significant amount of money by using the correct accounting software. When hoteliers use comprehensive and hotel specific accounting software, they see significant savings in labor expenses, infrastructure, and software maintenance.
Making Revenue Work for You
Hotel operators are finding it easier to assess and even optimize their cash flow with accounting software. This is assisting them in maximizing their revenue by allowing them to do a more thorough evaluation of the budget based on real-time data. They can alter profit predictions correspondingly.
Overall, the software helps the company improve its financial performance.
Increasing the Hotel’s Performance
Accounting in the hotel industry, whether digital or traditional, affects the company’s productivity. With accounting software in place, the strain of completing all accounting chores is greatly reduced.
This also allows hotel owners to concentrate on the operations and guest experience. Freeing resources from manual tasks and allowing more resources to serve customer and to expand the hotel’s business.
Developing Practical Hotel Business Insights
Hotels can use financial software to create a detailed study of their financial data. These studies are utilized by business owners to gain insight into industry trends, operating costs, and other related issues.
Carmen Accounting Software interfaces with your PMS and along with financial data we provide statistical data for a better and more in-depth analysis and updates on hotel occupancy rates, revenue figures, revenue per available room, and other data to business owners.
Accounting in the Hotel Industry: Important Financial Reports
Accounting requirements in the hotel industry emphasizes on various financial reports. Some of the most important ones are: balance sheets, income statements, and cash flow statements. And with a flexible reporting tool such as Carmen Accounting Software, many choose to develop custom management reports.
The Balance Sheet – Helps Understanding Of Financial Situation
The balance sheet summarizes the financial situation of the hotel. It consists of three key financial indicators: assets, liabilities, and equity.
The assets of a hotel refer to the company’s resources. Because it is a property, the hotel itself is a valuable asset. The property’s furnishings, furniture, equipment, and fixtures are also valuable assets. The amount of money the hotel has yet to receive after providing its services is one of its other assets.
In the meantime, hotels must deal with liabilities such as utilities, vacation pay, salaries, bonuses, and other accumulated payments.
Calculating the hotel’s profit and loss
The income statement summarizes the hotel’s various revenue streams and associated expenses during a specific time period. If the hotel’s revenues exceeded its expenses, it indicates that it is already profitable. It is, on the contrary, losing money.
It’s only natural to have a net loss in the early years of a corporation. This indicates that hoteliers have yet to see a profit on their investment.
Keeping track of the money that comes in and goes out
The cash flow statement keeps track of the hotel’s financial flow. A tracking report is required since the hotels’ daily activities involve a significant amount of money.
Cash flow is one of the essential signs of a stable firm, thus business owners keep it under control. Liquidity, or the quantity of assets that can be converted to cash quickly, can go a long way.
Carmen Hotel Accounting Software
To learn more about how Carmen Hotel Software has help thousand of Hotel professionals across APAC, please contact us to schedule a demo:
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