Whether you run a limited-service property or a hotel group, or aspiring to lay a large global venture into the world of hospitality business, one thing you must pay attention is on your ‘Bank Reconciliation’. As it’s the key to managing business better so you got to get it right and your finances will stay in control. If you get it wrong, it could land you up in trouble of overpaying taxes.
Let’s now dwell into the precise details regarding bank reconciliation and what all that it entails, in this following article.
What is hotel bank reconciliation & why is it important?
In simpler words, bank reconciliation involves the process of ensuring that the hotel business accounting records match with the bank accounts info. In general, it encompasses the opening and closing balances of hotel business, alongside individual transactions.
Let’s take an instance, imagine you buying a flight ticket to attend a hospitality conference on your business’s debit card and it appeared on your hotel bank statement. So, the same particular transaction needs to be recorded in your hotel accounting ledger, if not things get messed up in accounting records and cause mismatches, showing different numbers in your bank account. The whole process of matching your transactions while recording accurately is known be as a hotel bank reconciliation.
Well, now you have the answer when someone raises the question, “What does hotel bank reconciliation mean?”
Furthermore, bank reconciliation also aids help in tracking various other hotel financial aspects in your business’s banking. It gives you a complete picture of your money flowing in and going out from your hotel property’s account, so it becomes easy for you to spot on the suspicious activities.
What makes hotel bank reconciliation integral?
As mentioned, doing bank reconciliation process erroneously would land you as a hotelier in tough position, where you’ll plunge to have misplaced numbers in your hotel bank accounts. This may lead to serious consequences, and like many hoteliers, you may make the same mistake of not setting up the opening balance of your hotel business accounts to that of your bank accounts before even start recording transactions in accounting records. Experts suggest in many insightful sessions that one must perform bank reconciliations month-on-month basis, to relieve stress and save time that otherwise occurs when done all at once.
Advantages of bank reconciliation in hotels
First and foremost, doing the bank reconciliation will let you stay away from overdrawing your account as you would be pretty aware of the amount spent. This way the credit score would never dropped off. Besides, a few bank also do offer overdraft protection, however they charge bomb for utilizing the service so it’s better to switch to a trusted Hotel Accounting Software. It does the job really well, wherein in fact you can do even more accounting activities effortlessly.
Bank reconciliation even protects your money being theft. Wondering how does it imply? Well, when you compare your financial transactions in the books with that of bank, you would be able to easily spot on the discrepancies, creating room to examine entries which are not listed in books. Most importantly, you will be able to trace the bank transactions that were unauthorized, which ultimately reveal a clear evident of the attempted theft.
It give you a leverage, wherein you can identify where the bank you rely on is worth or no, evading entry errors. Even if any corrections, once the reconciliation is completed things can be corrected.
Detect you accounting flaws that encounter, missed payments or double payments can never be lost from your radar. You’ll always have transaction records accurate and would be able to track as or when required and also check which transactions have been cleared from outstanding.
An accounting software for hospitality industry lets you do bank reconciliation the correct way. Face it, as we after all are human beings and we prone to make flaws relying on CPAs, inexperienced accountants and bookkeepers. Due to inaccurate balances, transaction discrepancies it leads you nowhere and arise unnecessary financial complications like bounced checks and overdraft feeds.
However, find the reliable accounting software hotels is yet another challenge, and Hotelier Books stands out to be a top-notch platform trusted by hoteliers in the U.S. that lets you reconcile your hotel bank accounts with financial transactions in more safe and secured manner.
Auto Reconcile your Bank Accounts with Hotelier Books and get automatic feeds and eliminate all the possible accounting errors, while evading transaction discrepancies and ensure to keep your business deposits accurate, while saving both money and time.
Hotelier Books is not just about auto bank reconciliation, but in fact more than you think. It’s renowned to provide a wealth of hotel accounting features and bookkeeping functionality for limited-service hotels wherein handling a host of business challenges become easy, without hurting pockets.
More info@ https://hotelierbooks.com