Managing Your Hotel Better: 3 Bookkeeping Tips

Although the current pandemic has affected the hospitality industry, it remains to be a significant part of the business sector. Growth is still stipulated to increase, particularly since the pandemic may be nearing its end. With a postulated rapid expansion in tow, you’ll want to begin thinking about ways to keep your operations smoothly flowing. 

One of the best ways to do this is through a bookkeeping solution, particularly one that streamlines and organizes all your accounts. All successful business ventures entail solid financial management and are especially important in the hotel industry.

You’ll want to continuously accommodate guests through various booking platforms, all the while ensuring that you stay on top of employee salaries. Sales reports are also crucial, not to mention the analysis of data and tax compliance. 

Simply put, your financial records need to be monitored closely—and never just a shadow of your operation. Without a good financial management system in place, your business can quickly plummet into inefficiencies and errors. More often than not, such circumstances can lead to irreversible damages. 

The question now stands—how do you make sure that your bookkeeping system remains lucrative and organized? Fret not, we’ve gathered these simple but compelling tips for you:

Tip #1: Keep careful track of your petty cash 

Businesses operate on various monetary jargon, but the concept of petty cash remains to be one that’s interpreted differently—and excessively. Most assume that these merely pertain to random expenses made, making it difficult to keep track of.

Unfortunately, petty cash tends to pile up. Before you know it, you will have overspent and blown through your monthly finances. For this reason, it’s important to keep careful track of your petty cash purchases. Make sure to keep your books and ledgers updated, complete with invoices to file away. 

Tip #2: Be aware of sales taxes and sales deductions 

Although seemingly daunting to be aware of, the numbers surrounding sales tax and deductions aren’t always difficult to understand. Your business will need to account for these items no matter the state you operate in, and the only way to get it right is to stay on top of the rules. 

Bear in mind that tax rules constantly evolve, so you’ll need to work a little harder to keep up. Once you do, however, the numbers will be generally easy to handle. Should the work be too much, however, you may want to work with a professional bookkeeper—they’ll catch every deduction for you.

Tip #3: Don’t file your taxes at the last minute 

Taxes can be gruesome to deal with, but the sooner you finish them, the faster you’ll be able to move on. The hospitality industry requires you to remain on your toes, and what better way to jump off the current year than to finally close your financial books? 

Proactiveness is key here, so make sure to keep all your statements, receipts, and records throughout the year. Once you’ve had them organized, begin the filing process. Soon enough, you will have closed another financial year.

Skip the Trouble—Work With an Expert 

Managing a hotel entails tremendous responsibility and pressure, which can be further strained due to financial management. Numbers can be notoriously difficult, so you’ll want to allow some time to organize your invoices and records as efficiently as possible. Make sure to keep this guide in mind as you do, but if you want to make the workload a little easier, enlisting the help of a bookkeeper is always a good idea. 

For the best bookkeeping services in New York, Totally Booked has you covered. We streamline your business’s financial side, ensuring that all your records are updated and handled efficiently. Allow us to handle your finances so that you can focus on what matters most—your business growth. Contact us today to learn more.