18 Jul The role of accountancy in hotel managment
As an accountancy firm that specialises in small and hospitality businesses, we know first hand how important accounting is when it comes to proper hotel management. Without proper knowledge of where money was being spent or how much was left, it would be impossible for a hotel to even accommodate guests. This is where hotel management accounting can help…
An accounting solution for your hotel would be able to provide you with month-end accounts as well as compare the profit to previous periods. You’d also be able to check your progress against any past forecasts and have your budgets prepared for you. Additionally, financial statements and balance sheets would be taken care of, as would the cash flow statements and payroll.
With proper accounting, you can easily keep track of in and out cash flows. It makes it so much easier to know how much was spent and how much was received. It gives you the opportunity to properly allocate resources to each division, without any budget shortages, making areas that could do with improvement easily identifiable.
How financial knowledge helps
Hospitality managers will usually have a lot of questions, and accounting can have the answers readily available. Accounting will let a hospitality manager know the total sales of the business over the last year, the average price of the hotel rooms over the last week and how that compares to the hotel’s competitors. They can even find out which menu item is the most popular, and which one has been failing to excite guests.
Knowing the answers to these type of questions and more is absolutely vital for a hospitality manager to be able to effectively improve the business and plan for the future. It enables them to identify aspects of the business that could be changed to better serve guests as well as increase profits. It also lets them know what aspects of the business are performing well, giving them an opportunity to replicate it in other areas.
If you have a hospitality business and would like to see how accounting could help you take it to the next level, please don’t hesitate to get in touch with SQK. We’ll be more than happy to assist you with any questions you may have.