Chart of accounts in short, is an index of all your financial accounts in your hotel business’s general ledger. It allows your accountant to breakdown all the transactions made during any specific period into subcategories. COA enables you to gain insight into your financial effectiveness as it lets you segregate your hotel revenue, expenses, liabilities, and assets.
However, it really matters how you organize your chart of accounts!
It’s a bygone era of relying on spreadsheets, now is the time of automation and integration. Nimble Property lets you integrate your PMS within few clicks, letting you consolidate accounting data while mapping up to the right chart of accounts. Hoteliers most loved hotel bookkeeping software ‘Nimble’ by which gives you a hawk-eye view on all your hotel happenings.
On a broader perspective, you’ll have a significant visuals of your subcategories including Accounts Receivable, Expenses, Inventory, and Assets.
Did you know that understanding your hotel chart of accounts is integral for a reason? If you didn’t, then it’s must to know that it provides a clear picture of your hotel’s financial health. This is not just for hoteliers, but also for accounting, and administration department which looks over day-to-day hotel operations.
It also make your business comply with the financial reporting standards. If you aspire to improve your chart of accounts, note that consistency is a key.
Make sure your hotel chart of accounts stay intact for several years, as it becomes easy to compare results. If you alter it by every now and then, it becomes increasingly very difficult to gain insight on your financial information over a period of time.
Nimble lets you organize your chart of accounts at a manageable size, letting you have access to everything you want to monitor on an intuitive dashboard.
Furthermore, you can access the chart of accounts list property-wise and track the account balance.
You’ll be able to generate reports that assist in making better business decisions.
Maintaining chart of accounts manually leads to issues with incorrect account usage, extensive accountant training, immaterial account balances, higher audit costs, and incorrect financial statements.
Chart of accounts structure must be effective, as it directly or indirectly drives your financial performance and it is well laid in accounting software, once configured well.
If you as a hotelier ignore the foundational thing, it will result you in facing limp situation with unmet financial goals.
Most of the hoteliers set up their chart of accounts maybe once in a decade, and miss an eye on it. The ideal thing is to outsource it, as it can be incredibly impactful raising your financial handling to the next level.
The hotel chart of accounts is the most important attribute to be considered to gain a vivid financial visibility. Without it embarking a successful financial journey would likely to a high-cost disaster.
For your hotel’s elegance, switch to reliable hotel accounting software like Nimble and keep your numbers accurate & consistent.