One of the best ways to run a successful business is by keeping financial reports. This will help the businesses make better decisions in the future. It keeps them focused on important facts and figures about basic operations, profitability or investment analysis. Financial reports also keep track of all the revenues and expenses which allow management to be able to answer questions like, “What did we earn last year?”, “What are our expenses this month?” or “How much cash do I have left?”.
A simple form of financial report that might be used for hotels would display items like; income statements, balance sheets, cash flow statements and notes. These types of simple reports can be generated using basic hotel software program based on the needs of the hotel establishment.
Every business needs to maintain proper records so that it can remain profitable in the future. The same thing applies to hotels. Without good financial reports, a hotel would have no idea what areas need improvement or which departments are not performing well enough. Using financial statements, managers can get an overview of their company’s financial status.
Accountants play a vital role in the hotel business, and are specialized in development of crucial financial statements, providing accurate summaries of transactions and transmitting this information to internal users including managers and hoteliers. Let’s now dwell into the most common hotel accountant reports, which they craft every day or the other, at least they go to report the hotel’s financial data every month.
Financial statements allow managers to see the big picture of their hotel’s financial standing for a specific time period. They can look into these reports and find ways to improve their business’ operations. With this information, they can make informed decisions regarding whether they want to expand or contract their company, invest in new assets, allocate more funds in advertising or marketing campaigns, among many other things. Furthermore, with proper documentation of transactions and events that occur within the organization, owners will be protected from any possible lawsuits and inquiries by creditors and stakeholders for future liabilities.
Before deciding which type of accounting software to purchase for your hotel business, you must first determine your needs and what factors you should consider.
It is important that you have an automated system in place for generating reports, or else it could lead to loss of money and time. Hotel accounting software ensures that hoteliers are reporting everything accurately and on time. The best part? The software takes care of all the calculations so your accountants don’t have to do them themselves!
General Ledger Report:
This report contains a summary of each account in an organization’s chart of accounts along with each account’s beginning balance, transactions posted during the period and ending balance. It shows all activity that affected the entire chart of accounts and is sometimes called a combined report or journal report. A general ledger report includes 24 columns displaying debits on the left side and credits on the right side with alternatives such as debit/credit or asset/liability depending on how they were set up in the chart of accounts. It shows each account’s ending balance along with beginning balance, post-closing credits and outstanding liabilities.
Journal Report:
A journal report summarizes individual journals posted during a certain period. A general journal contains an account number followed by a date, amount, description and memo field. Each transaction has at least one posting line that includes an account number, debit/credit flag (always left blank when posts are in credit), amount, date and memo; however transactions may have many posting lines in addition depending on how much detail is needed to describe them in the following ways:
Audit Trial:
An audit trial is a final report on errors or issues found during an accounting process such as reconciliation between the general journal and ledger prior to closing the books. Errors are listed first followed by explanations or corrections which complete the audit trail process starting on day one after opening of books at the end of the last accounting period. Such errors and corrections represent the transferal of balances between accounts during a specific time period including transfers to other operating departments or other companies as well as debit and credit adjustments.
Final thoughts:
In the hotel industry, financial reports are important tools for planning and decision making. In these documents, management makes projections of company’s future based on past performances. Financial reports can assist in understanding daily operations of a business as well as determine its progress over time. For instance, recording the number of room sales annually is a good indicator that determines how well a hotel is running or where it stands compared to other hotels in the location.
Besides, the reports like hotel general ledger report, hotel journal report, and hotel audit trial are an important part for accountants of the hotel business. From understanding how to interpret financial statements, to knowing what numbers matter most, these documents offer valuable insight into your hotel’s success. If you want help with accounting or financial reporting for your hotel business, don’t hesitate to reach out Nimble!
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