The modern hotel accounting system is not just the more streamlined option, but in the current climate it is a more stable one. The recent financial crisis showed that records can easily be lost or corrupted due to a myriad of different factors, as well as that updating spreadsheets in various locations can lead to discrepancies and lost data.
Furthermore, traditional spreadsheet methods are bound by the practical limits of their software and force users into creating their own formulas for complex tasks like depreciation calculations – an issue that does not exist with a modern Cloud-based Hospitality Accounting Software like Nimble which provides financial calculations automatically.
To succeed in the competitive hospitality industry, it is essential to have a modern hotel accounting system. Accounting is not a glamorous part of the hospitality business, but it is instrumental to any successful enterprise. In this blog post, we explore nine of the many benefits of modern hotel accounting software for your hotel business.
1. Helps You See the Big Picture
The accounting system in your hotel business helps you see the big picture, which is essential for growth. For example, it shows you how much revenue you are bringing in each month and how much is going out each month. It also shows you whether or not your hotel business is profitable and whether or not your daily operations are bringing in enough revenue to pay all of your expenses.
2. Helps You Stay on Top of Your Financials
Modern accounting systems help you stay on top of your financials and make adjustments as needed to keep everything running smoothly. For example, it provides you with real-time data about your business so you can keep an eye on whether or not your daily operations are bringing in enough revenue to pay all of your expenses. Your accounting system should also provide you with monthly and annual reports so that you know how much revenue you brought in each month and how much money is left over at the end of the year.
3. Helps You Manage Your Inventory More Efficiently
Your accounting system helps you manage your inventory more efficiently by clearly showing when inventory levels are running low so that you can restock as needed. For example, if inventory levels drop below 30%, an alarm will go off indicating that it’s time to restock certain merchandise.
4. Helps You Save on Taxes
The accounting system in your hotel business helps you save on taxes by making it easy to keep track of all of your purchases, which you can use to write-off expenses. For example, it shows you all of the purchases that you make towards items in your inventory and helps track how much money has gone out towards payroll expenses. You can then use this data to write off certain costs against income.
5. Helps You Keep Track of Employee Performance
Having a modern accounting system in place helps you keep track of employee performance because the financial data generated by the system is easily accessible and can be used to assess job performance. For example, your accounting system should provide you with reports on daily and monthly sales, daily and monthly sales per employee, daily and monthly expenses, as well as annual reports. You can then use this data to measure the performance of employees to see how they are doing at their job.
6. Helps You Track How Customers are Performing
Having a modern accounting system in place helps you track how customers are performing by showing you whether or not you’re bringing in customers long enough for them to purchase perishable items such as food or beverages. For example, if an item on your menu sells out, it will show up in the revenue data that is generated each month.
7. Helps You Take Advantage of Opportunity
The accounting system in your hotel business helps you take advantage of opportunity when it coincides with your current situation. For example, if you’re paying close attention to your daily operations, you will be able to see if certain sales are occurring during a commuting time period and can take advantage of this when it happens again. You can also use the same data to determine how much revenue per employee is generated in this commuting time period and adjust staffing patterns accordingly.
8. Helps You Prepare for the Future
The accounting system in your hotel business helps you prepare for the future by providing you with real-time data to keep your finger on the pulse of your business and make any necessary adjustments. For example, if you’re paying close attention to your daily operations, you will be able to see if certain sales are occurring during a commuting time period and adjust staffing based on demand. This will help ensure that everything is running smoothly when that commuting time period comes around again.
9. Helps You Keep Your Guests Happy
The accounting system in your hotel business helps keep your guests happy by providing detailed reports of their spending habits so that you can make improvements to meet their needs. For example, if you’re selling a certain type of alcoholic beverage that your guests are requesting more often, it will show up in the sales data that is generated each month. You can then adjust your current menu items to provide the same service to your guests at an even lower cost.
FINAL THOUGHTS
The cloud-based nature of a modern accounting system means that all bookkeeping records can be available at any time, regardless of whether you’re using two computers or two hundred. No longer do you have to worry about making sure that the right updates are being made and then distributing them throughout your organisation.
While spreadsheets might seem to be the more straightforward option for keeping track of information, there are numerous benefits to reporting with a modern cloud-based hospitality accounting software
Reduced maintenance costs: With a spreadsheet-based solution you need statisticians, programmers and developers. With cloud-based solution these employees are already in place. Nimble can also be managed from anywhere.
Reduced security risks: There is no need to worry about updating spreadsheets in a few locations, especially when those locations are not controlled by you. With a cloud-based accounting system the whole system is controlled by you.
Using cloud-based options increases the security of your data by ensuring that your data is stored on servers securely, which can be accessed from anywhere – eliminating the need for anyone at the hotel to remember login and password details for individual accounts even if they were previously using this system.
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Increased efficiency: The updated information can be immediately made available to all users, which means reduced overhead and effort on your part. In the past there have been cases of spreadsheets being forgotten in hotel storage rooms and never being used again, costing companies thousands of pounds in lost data. Even minor issues or lost data with a spreadsheet-based solution can have devastating consequences due to its unstructured nature making it difficult to retrieve any specific information.
Reduced expenses: With a cloud-based system there is no need to pay for IT staff to maintain a spreadsheet.
More efficient reporting: Modern accounting systems are capable of automatically calculating basic financial information in real time. This makes reporting much easier as you don’t have to manually enter this information every time.
What do you think? Do you use a modern accounting system for your hotel business? Share your thoughts in the comments section below.
