Hotel accounting system Case Study Example | Topics and Well Written Essays - 1000 words

Hotel accounting system - Case Study Example The lodging industry was apparently one of the first industries to enlarge â€Å"definitive standards to provide precise regulation to accountants and operators. The standards evolved since consistency of layout and arrangements were, and are, still not strained under U.S. Generally Accepted Accounting Principles (GAAP)." Those standards were and are controlled in the Uniform System of Accounts for the Lodging Industry (USALI), which is published by the American Hotel and Motel Association. The USALI itself provides for up to 30 departmental statements, which include, in addition to those previously mentioned: telecommunications, garage and parking, golf shop, golf pro shop, guest laundry, health center, swimming pool, tennis, tennis pro shop, other operated departments, rentals and other income, human resources, information services, security, franchise fees, management fees, rent, property taxes and insurance, interest expense, depreciation and amortization, income taxes, house la undry, salaries and wages and payroll taxes and employee benefits. (Collins, M. & Parsa, H. 2006)The principal differences between hotel's transactions and internal control and those of additional businesses are found in the revenue cycle. Room revenue is the mainly significant source of income to hotel. The front desk is the center of the hotel's operation and the place where the guest ledger, which abridges and accrues all charges to guests using the hotel facilities, is maintained. Several of the functions executed by front desk employees are registering guests, recording room revenue, recording food and beverage and other guest charges, checking out guests, and settling guests' bills. Ceria Holiday Ceria Holiday, which is positioned in tourist area in North America, operates guesthouses. The fee charged to Ceria's guests includes both accommodation and all meals. The management of Ceria applies strict financial control of its activities in consideration of the competitiveness of the industry and the seasonal nature of the business. In this meticulous case, the area that needs constant monitoring on the costs is the restaurant. The manager of the restaurant is given an annual budget at the beginning of each year. Each month he/she receives performance statement with the following postulations: The budget has been calculated on the basis of 30-day calendar month with the costs of rent and depreciation being an apportionment of the fixed annual charge. The budgeted catering wages presume that: There is one member of the catering staff for every 40 guests staying at the complex; The daily cost of member of the catering staff is RM30 All other budgeted costs are variable costs based on the number of guest days. While services at the Ceria Hotel are provided by the property, revenues are recorded and charged to the barter accountability. On the other hand, the expense is offset against the barter asset account when the service is acknowledged. For peripheral reporting purposes, USAL recommends that the asset and legal responsibility accounts be netted and reflected as contemporary asset or accountability. This will result in revenues and expenses connected with the barter transaction being reported in different periods. Ratio analysis, in common, comprises the same types of ratios used in approximately any industry. Nevertheless, there are few industry specialized ratios peculiar to hotels and/or restaurants of which one ought to be aware. Average Room Rate = Rooms Revenue divided by Paid Rooms Occupied. Average Food Check = Total Food Revenue divided by Number of Covers. Covers refer to guests served in the food operation during the interlude.(Collins, M. & Parsa, H. 2006) current vital addition is "RevPar", which stands for Revenue per Available Room. It is calculated as moreover: Rooms Revenue divided by Rooms Available for Sale, or as Rooms Revenue div