When it comes to hotel management, an owner can simply not overlook the area of hotel accounting system. The importance of hotel accounting can be easily identified when there is a need to understand accurate numbers for a given period and the need to comply with legal requirements.
While most hotels used to employ common spreadsheet programs for maintaining and sharing accounting data related to their hotel, nowadays the trend has moved on to use of sophisticated hotel management and accounting software. With the advancing pace of technology, it is pivotal for a hotelier to streamline his business processes with the changing technology.
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In the hotel industry, there is a lot that an accountant has to oversee. His job is not limited to deriving the figure of revenue and profit.
Here are some of the focus activities that an accountant has to overlook when delivering their services:
- Provide accurate month end account statements
- Prepare monthly, and annual budgets
- Make a comparison of past and present profits, along with budgeting a profit figure for the coming months.
- Preparing relevant financial statements and balance sheet for the period.
- Preparing periodic cash flow statements
- Managing payroll system
- Performing business planning
Information derived from the accounts are relevant for an owner so that he may decipher the financial health of his business. These numbers will also help him in making various quality assessments such as, ‘how his hotel rooms are priced in comparison to the competitors’, or ‘how has the hotel earned in the present month as compared to the previous month’, and more such questions.
While all this information may have consumed a lot of time, had it been sourced manually, automated hotel accounting software allows summarising of these numbers in a short time and that too, all the while avoiding making errors.
What is the Hotel Accounting System?
Hotel accounting system is a subset of the hitherto system of manual preparation of accounts. What usually involved checking the record of every transaction, summarising the data, making relevant additions, subtractions and more, has now evolved to include the use of data and technology devices to achieve more or less the same objectives.
With the use of hotel accounting software, it has become possible to access data files at any time, maintain up to date data files and save time and effort in the process of compiling the accounting records. Employees can now work together as a team and achieve more than what they could have initially manifested. Broadly speaking, converging the existing hotel accounting system with a sophisticated accounting software has many advantages for the hotel, its owners, and its staff in general.
Benefits of integrating Hotel Accounting System with Cloud PMS
Here are some of the major benefits that will accrue to the hotel owner and staff by integrating their hotel accounting software with a cloud PMS:
1. Achieving automation and accuracy
Using a cloud PMS based hotel accounting software has the advantage of making the job of generating invoices, maintaining account statements, producing payslips, producing revenue statements and more, easier than can be imagined. Even routine jobs have been easily automated which has helped in eliminating the problem of manual errors. One can achieve greater accuracy in the work performed by him when the data is entered correctly and processed faster than ever before.
2. Provide easy access from anywhere
The data which is uploaded on a cloud PMS can be accessed from any point and anywhere when needed. Hence, accounting data remains accessible from any device, no matter what your location may be.
3. Obtain information in real time
As the entire data is available at one place, a user can obtain all the related information at any time and check the most up to date figures of the data sought by him. Thus, data like accounts receivable, cash and bank balance can be ascertained easily.
4. Simple to use
The process involved in entering data and retrieving reports is quite simple. Thus, a user with basic knowledge of using computer hardware and software can easily extract the relevant reports and present it at any hour. Plus, data storage is never a problem as there is ample storage available with a cloud PMS.
5. Increased speed and efficiency
As compared to the manual system, a cloud PMS integrated with hotel accounting system can present faster results and help in overcoming errors.
Nowadays, there are many ways in which owners can maintain the security of cloud-based resources. This helps a hotel owner in performing various tasks which were difficult to perform earlier with a manual system. Thus, it can be rightly said that integrating a cloud PMS with hotel accounting software has many advantages.
Not only does this integration help in saving the time of the employees involved, it is also a major improvement to the manual system in terms of cost. Earlier, a business owner had to pay an employee to do the task that a software can do without any significant cost. Plus, while there was ample scope for errors to occur, the hotel accounting system completely eliminates the possibility of human error, as long as the data is input in the correct manner. Working online has its own advantages as well as a business owner.
There is no need to install expensive hardware and software separately, as it is readily available in the cloud. QuickBooks and tally are just a few of the best and most popular hotel accounting software which are available in the market these days. Some more examples of such software are Alif, Xero and more.
This software provides regular updates and back-end support to the users so that they can make the best use of the software and extract maximum benefit for their business. If you are looking forward to moving over a manual system of maintaining your hotel accounts, you have all the reason to do that right away!