It goes without saying that accounts are the sort of thing you want to get right. Whether it’s business expenses, profit, or just a track of each bill. With so many stays, especially for larger hotels, your accounts can run away with you. Hotel accounting software is a lifesaver for busy business owners.
There’s undeniably a lot to track when running any hospitality business. But when you consider a property that might have 200 new guests a night, you can see why automation becomes necessary. There’s no way you could accurately record that and continue running a successful hotel. Even the best accountant must be constantly on the ball, and not every hotel can afford that.
In this guide, we’ll teach you everything there is to know about choosing software to help your hotel accounting. We’ll establish whether it’s a wise investment for you, the intricacies of hotel accounts, some solid definitions, and a budget.
Ready? Let’s start; in under 10 minutes, you’ll have your next steps prepared!
The Intricacies of Hotel Accounts
We’ve already touched on what makes hotel accounts so intricate to handle. As soon as you have a hotel of any substantial size, it becomes challenging to track accounts. Just think about it: you might have 250 rooms changing at a 50% occupancy rate per night. That’s 125 bookings to document, and that’s every day.
Apart from that, you’ve also got business expenses to factor in. This includes things like staffing costs and electricity and heating bills. Expense tracking can quickly become a nightmare if you don’t have a regular staff rota. Luckily, staff turnover in the hotel industry isn’t as high as restaurant staff turnover, which is as high as 75%.
Monitoring your outgoings can be difficult anyway on such large premises. Does anybody have the time to dedicate 100% of their time to tracking profit? Realistically, we all know it requires (what feels like) 100% of time to make a profit in the first place. God forbid you run hotel chains, not just individual boutique hotels — there just isn’t the time in the day.
When managing accounts, it can help to invest in business intelligence tools to stay on top of things. It’s one of the most important financial processes, not just for tax records but also for business growth. It’s definitely worth the extra investment.
What Is Hotel Accounting Software?
Hotel accounting software is a technology that helps you to track your financial operations. It monitors and records profit and operational costs. You also receive financial insights into how you can improve and garner more success as a business.
It’s important to emphasize that this is a specialist option, too. There are many accounting software out there, but choosing one specific to the hotel industry means better key features. It’s helpful to have everything slanted toward your industry of choice.
It’s like having your own hotel accountant squirreling away data 24/7 in the background. No wonder this is one of the hotel technology staples you can’t — and shouldn’t — live without.
5 Benefits of Hotel Back Office Accounting Software
Having that software undeniably makes your life easier. Even just reducing the manual labor of tracking staffing costs alone is valuable. The positive impact of such comprehensive support is almost unimaginable.
By now, we’ve established that software is the hotel marketing strategy your business requires. But let’s dig deeper; what are the benefits of investing in hotel back office accounting software?
1. Cloud Storage
If you don’t know the benefits of cloud storage yet, you’re in for a treat. This form of data storage utilizes the Internet and remote servers rather than relying on physical technology.
There are tons of reasons why this is preferable. For one, multiple remote servers are much more secure than a single physical one. In case of a fire, theft, or other damage, your data remains safe in the cloud. It receives regular backup and 24/7 security monitoring.
It is also more convenient, especially if you’re already short on space and want to maximize all your rooms for guests. Physical servers can be bulky.
2. Easy Access
Because of this, accounting software makes data easier for the right people to access. For example, if you run a hotel chain, managers across different locations can access important information. All they need is login details. How easy is that?
It’s like everyone sharing study notes rather than making their own. It’s quick and much more efficient — especially when you’re judged on team performance anyway.
With all your financial operations tracked, there’s no stopping you. Just think of the insights you get. You’ll know exactly where you’re making money and where there are any loose ends that can be tightened up. Invest in software that offers an analytical dashboard and put all that data to good use.
Investing in accounts software is an intelligent way to track your business’ performance. In this way, you can constantly improve your strategies and make more informed decisions.
4. Easier Tax Filing
This is a huge benefit. We all know how stressful the end of a tax year can be. You’ve got all your expenses to draft and 12 months of documents to crawl through. And as a company, there is even more paperwork to complete, including quarterly reviews in some countries.
It can feel like by the time you’ve organized one tax form, there’s another shooting your way. Investing in accounting software is one way to lessen the burden. The filing is more accurate, and the data will be neatly laid out.
5. Saved Time and Money
Overall, the major benefit of this approach is how much it will save you in time and money. Rather than dedicating hours of paid time (from you or employees) to track your accounts, it’s done automatically.
“Saving money” by manually conducting this task is just a false economy. There are more costs incurred by spending hours tackling this alone than by investing in a menial monthly subscription fee. It leaves you with the time to invest in other things, like growing your business.
Software for hotel accounting has the potential to maximize profit by cutting the time and money finances drain you of. Who wouldn’t want that?
3 Popular Accounting Systems in Hotels
Shopping for software can feel overwhelming; we won’t deny it. There are just so many options out there. And with fancy tech names and bundles of jargon, it’s hard to weed the good from the bad. If just the thought sends shivers down your spine, chances are you need a place to start.
Having a few ideas for popular software that people in the industry are already using and enjoying is essential. This way, you know a few green flags to look for when deciding what to move forward with. So, what are the most popular accounting systems for hotels? Here are the top three contenders.
1. Sage Intacct
Sage Intacct is a cloud-based accounting platform with many other business features that allow you to manage operations remotely. You can track accounts, payroll, and HR all from one place. And, if you’re looking for software to manage hotel chains, this is the one. It specializes in multiple location management.
The software is available for a vast range of industries, from construction to healthcare and hospitality. While Sage is not hotel-specific, it provides specific adaptations and expertise in each industry. It’s a bit of a chameleon, but in an effective way.
Get in touch with Sage directly for quotes.
2. Xero
Xero is fantastic for smaller hotel businesses, and its rates start at just $15 a month — an amazing deal! This is your best choice for managing your hotel accounting on a budget. It has payroll, expense tracking, project tracking, and payment approval features. Basically, Xero is everything wrapped up in a neat little box.
It even has a feature to invite your accountant to collaborate and access the platform. It streamlines even the most lengthy of conversations. If you aren’t going to overwhelm it with data, it’s a smart program to get started with.
3. Intuit Quickbooks
Intuit Quickbooks is accounting software that specializes in boutique hotels. Rates start at just $35 monthly, increasing with set price tiers. It allows you to invoice, monitor transactions and reservations, and automatically track expenses. What more could you want?
The pricing tiers are a great option, and a huge benefit of this software is the number of discount deals. You could get started with it for a minimal upfront investment.
What To Budget for Hotel Accounts Software
On average, we’d suggest budgeting upwards of $15 for a small hotel, but prices can quickly rise to the mid-hundreds. Here’s a rough breakdown of what to expect:
- $15 to $40 for a small hotel
- $60 to $80 for mid-range chains
- $100+ for large chains and properties
If in doubt, ask for a free trial or demo. This way, you can establish exactly what features you need without investing heavily in a subscription upfront.
FAQ
Don’t rush off just yet; it’s important to consolidate what you’ve learned about hotel accounting software. Here’s some food for thought.
What software do hotels use for accounting?
There are hundreds of options out there, but popular choices include Xero, Sage Intacct, and Intuit Quickbooks. Anything with expense and book tracking features is suitable for basic accounting.
The more advanced options include things like payroll, invoicing, and performance analysis.
How much is accounting software for hotels?
Budget around $40 to $60 monthly for the average hotel’s accounting needs on a subscription basis. Finding software as cheap as $15 a month for smaller businesses is possible, but you’ll likely outgrow it.
Larger companies, like major hotel chains, will need to budget more to reflect the larger data processing demands. Expect rates of $100+ a month.
Why should you invest in accounting software for hotels?
Accounting software is fantastic for saving hotel business owners time and money. It also makes tax filing easier by keeping more accurate and thorough records. Recording all financial operations enables better performance analysis for business scaling and improvement.
Beambox: WiFi for Hotels
Just like nobody wants faulty hotel accounts, no guests want hotel WiFi that isn’t working. Having a reliable and trustworthy hotel WiFi solution is non-negotiable.
To invest in another passive strategy that can improve your business operations through technology, research captive portals. Captive portals sync with your existing guest WiFi system. Instead of immediately allowing guests to join your network, it redirects them to a webpage form.
You personalize the form to request details of your choice, and once they comply, guests receive full WiFi access. It’s a great way to collect valuable marketing details.
At Beambox, we offer a trusted all-in-one WiFi marketing platform to transform your Internet into an essential strategic tool.
Set your hotel accounting software aside to start running solo, and start your Beambox free trial today!
