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Accounting for Your Business: Tips for The Hospitality Industry

hospitality industry_reception

The foundation of the hospitality industry is pleasing people. Giving customers a good experience whether it is food and beverage or comfortable rooms are your business goals. It is no secret that hotel management and restaurant work involves a busy working life; long hours, dealing with customers, the list goes on.

Therefore, time is the most important thing for you to manage as a hospitality industry professional. Accounting is essential to your hospitality business. So how are you going to get your accounting done in the minimum time?

 

The language of hospitality business

Accounting is the language of business. So, when you are looking for accounting solutions for your hospitality business, then you should look for relevant solutions.

One hospitality industry accountant says that “hotel-specific solutions allow for minimal ramp-up and training because the functionality and language of the application are already in “hotel-ese”, including formulas for revenue per occupied room and per available room, average daily rate and so on.” Adding that, “Adopting solutions that are developed by hoteliers exclusively for hoteliers give users a critical leg up over their competition.”

Here are four tips for accounting in the hospitality industry.

 

Tip 1: Partner up

While you are considering Enterprise Resource Planning solutions, take a look at the big picture.

There are solutions available for hospitality industry-specific technology. One hospitality industry expert advises, “Through month-to-month subscriptions, all hoteliers, from single-location owner-operators to large-scale portfolio-management companies, can leverage best-of-breed accounting and financial technology at a fraction of the cost of ownership.”

Find out from your peers, in the hospitality industry, what are the pros and cons of the accounting software that they use. You may be able to save a lot on costs by sharing. Take a trial of some free accounting software to get started.

 

Tip 2: Real-time hospitality

High staff turnover is a chronic feature of the hospitality industry in Asia. If you have outlets in different countries across the region, then you will be facing even greater challenges. You will often have to add staff for seasonal variations in business. So how do you optimise your operations? Try real-time monitoring of labour as one solution. According to one hospitality industry expert, “It is critical for hoteliers to establish a balance between monitoring daily labour costs, managing overtime, overseeing daily payroll transactions and accessing simple reporting functions.”

Cloud-based reporting tools can help the monitoring and management process and give hoteliers on-demand management of earnings to manage transactions in real-time. This allows you to incorporate job standards along with your budget numbers so that proper staffing is in place based on the previous day’s experience.

 

Tip 3: Manage your hospitality data

Own your data if you want to own your business. Data is vital for the hospitality industry. Customer feedback is online everywhere with the increase in sites like Tripadvisor. Try building a centralised platform that is easy to use with a dashboard. This will also help you reduce expenses, increase efficiency and help you identify trends that will allow you to make better key decisions for your hospitality business.

 

Tip 4: Outsourcing

It’s easy to get overloaded in any job. This is common in the hospitality industry. Long hours dealing with people. Stressful. Hoteliers can cut down the stress by focussing on the core competencies that drive revenue. This cuts out a lot of the noise; managing volatile portfolios, mitigating mistakes, minimising high staff turnover and training costs. Try outsourcing some of your core competencies; financial statements, bookkeeping, accounts payable, tax and audit. Try it and see what the results are. If it works well, this could be a permanent solution.

Finding accounting solutions that are specific to the hospitality industry will help you save time and money. They will provide you with more effective solutions for your hospitality business.

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