There are certain aspects of hotel accounting that make it different from the other business accounting. Following are the unique aspects of hotel accounting:
• Varying room costs- Costs of the hotel rooms change based on the size of the room, location and change in demand due to weekends and holidays, incidental charges (like damage to the room, food, and beverages) etc.
• Vendor contracts- Hotels have contracts with various vendors for different services, and managing their accounts is necessary. Vendors provide the hotels with food & beverages, supplies for guests, alcohol, etc. They also have varying demands in terms of payments and operations. It is a must that the vendors follow the hotels’ operating standards and procedures, hotel guidelines, and company culture.
• Multiple departments and revenue streams- Hotels have various sources of income such as room rent, laundry, restaurants, bars, etc. A separate account must be prepared for all these sources to keep an accurate track of the businesses’ incomes and expenses.
• Night auditing- Since the hotel is a 24*7 business, it is essential to regularly conduct night auditing to ensure that the entire day’s transactions are in order. It makes the overall accounting smoother in the long run.