Nine benefits of hotel accounting
Many hotel operators can be reluctant to enter a discussion about hotel specific accounting software. There is a common misconception that it is expensive, and that the owner or management company won’t have full control of their data. In today’s…
Blog20th Sep 2023
Many hotel operators can be reluctant to enter a discussion about hotel specific accounting software. There is a common misconception that it is expensive, and that the owner or management company won’t have full control of their data. In today’s tech-driven market it might seem that there are so many software options available, it would be easy to become confused as to what the best option is for a hotel operator.
What is hotel accounting?
Hotel accounting is an online software platform, set-up and run by hospitality finance professionals. It brings all your financial and non-financial information together to provide live dashboards to help you improve your performance.
why is hotel accounting important?
With complex spreadsheets still being widely used across the hospitality industry, there is greater risk of error, and difficulty in achieving real time, accurate reporting of key financial data. This can lead to loss of revenue, cash flow problems, and difficulty in quickly pinpointing areas of concern.
In this blog, we will focus on some of the main benefits that effective hotel management accounting provides.
the value of hotel accounting software
1. Real time information at your fingertips
This is one of the most popular benefits of having effective financial reporting in place. Customisable KPI Dashboards are available 24/7, with daily flash reports available on mobile devices. Being able to plan campaigns and open up online reservation platforms quickly is critical to filling empty bedrooms.
2. Fully integrated automation
Income, banking, accounts payable and accounts receivable are fully integrated and automated, meaning there is little or no margin for human error when inputting figures and information. The integration of the hotel Property Management System (PMS) to the finance system enables real time information to be captured.
Our software platform can be integrated to any PMS. Integrated budgeting and forecasting can also be incorporated in dashboards.
Many of our clients are just at the start of their hotel journey – but who knows where that journey might end? Starting with a chain of two or three hotels in the UK, to expansion into the USA, a good financial accounting system, specifically built for hotel operations, will grow with you, without compromising the information you receive.
4. Uniform System of Accounts for the Lodging Industry (USALI) compliant
The Uniform System of Accounts for the Lodging Industry (USALI) is the sector-wide standard for hotel industry accounting, with a new edition currently in development.
Our hotel accounting platform is fully USALI compliant, giving our clients peace of mind that they are adhering to industry best practice. We have significant expertise in implementing a Chart of Accounts which is fully USALI compliant.
5. Detailed monthly performance reports / management accounts
Reports are fully customisable so you can decide exactly how you want to view them, enabling you and your team to compare daily financial statements and quickly identify issues affecting performance. From detailed departmental P&L reports to summary KPI reporting we can build a suite of reports for each user and make them available online 24/7, 365 days per year.
6. Save time (and money!) through integration of systems
When your PMS, procurement, rota management and financial systems all talk to each other automatically, there is much less time spent on inputting data. This can free your staff up to do more important things like improving your customer journey. There is also less margin for human error.
Our software platform integrates with all property management systems, procurement systems, rota planning systems and also with hotel specific forecasting tools.
7. Benchmarking highlights areas for review and improvement
The majority of hotel accounting platforms (including AAB Hotel Accounting) can receive data from STR or Hotstats data solution providers, allowing you to benchmark your performance against similar hotels. You are also able to obtain “Per Occupied Room” profit and loss accounts and KPI statistics, allowing immediate attention to be given to areas of concern highlighted.
8. Budgeting and forecasting
Effective hotel finance systems integrate with forecasting tools allowing both upload and download of data. This ensures a close alignment of reporting and analysis between actuals, budgets and forecasts. Multiple forecasts enable up to date, real time reporting. We have integrated our software platform with key hotel specific forecasting tools.
9. Staffing & HR
One of the biggest challenges facing many hotels today is the recruitment and retention of suitably qualified finance staff. The cost of recruitment and retention of staff is significant. By using an effective hotel accounting service this challenge is resolved.
At AAB Hotel Accounting we have a staff of suitably qualified hotel accounting experts which can be scaled up and down to meet your requirements. We will become part of your team – without the HR issues and challenges which create time constraints on the business.
realising the value of hotel accounting software
There is some real food for thought for hotel owners and operators that are still using spreadsheets as their main way of financial reporting. Being able to quickly identify areas for investigation and improvement, in addition to saving time through improved visibility of performance, can transform your hotel finance system.
At AAB Hotel Accounting, our hotel finance system operates within a robust control environment and our systems and procedures are tested and reviewed constantly. We work with auditors across our client base. At the outset of our partnership with a hotel, a matrix of responsibilities and authorities is agreed, and our team provides constant feedback on any issues identified.