Hotel and Hospitality
Accounting Challenges for the Hotel and Hospitality Industry
Payroll is the largest expense in the hospitality industry and staff turnover can be high. The Sage ERP system’s payroll module is adept and managing payroll for all US states and Canadian provinces. An integrated EFT function can direct-deposit staff pay cheques, and pay stubs can be emailed to the employee.
Human Resource (HR) Management
Staff turnover is generally higher in the hospitality industry. It is important to maintain complete recruitment and employment records on each employee as many will leave and then return at a later date. The Sage HR module integrates with the Sage 300 Payroll to provide greater accounting control over wage rates and benefits. An integrated HR application will add the following benefits:
- Manage all your employee-related information and processes in a single solution.
- Make stronger decisions faster with improved access to workforce analytics.
- Ensure government compliance to avoid company risk in meeting federal and provincial rules, regulations, and reporting requirements.
- Allow employees to access information and complete vacation and other training requests over the web using Employee Self Service(ESS)
- Closely monitor employee records and personnel actions, including recruitment, HR compliance, benefits administration, and absence management.
Financial and Statistical Reporting
Departmental reporting is key to effectively managing a hotel property. Capturing statistical data in tandem with financial transactional data allows for the easy extraction of operational Key Performance Indicators (KPI) using the Sage Intelligence, an Excel-based business intelligence tool that is part of the Sage ERP system. For example, daily occupied and unoccupied room counts can be stored in Sage ERP and extracted to report on revenue or Gross profit per occupied room.
Project accounting is used in the hotel management to control the costs of large renovation or building projects. The Project and Job Costing (PJC) module in Sage ERP is adept at breaking down projects into sub-components. Budgets can be maintained for each sub-component on a monthly basis and can be spread over multiple years, thus allowing for on-demand variance reporting.
Expenditure authorization takes on added importance in the hotel industry because many of the expenditures are often of a high dollar value. These would include food and beverage purchases as well as capital expenditures made for a renovation project. This demands that approval workflows be implemented to control the purchasing function. Workflows ensure that:
- Requisitions are created only by individuals with that authority.
- Individuals can only requisition purchases for departments to which they have authority.
- Approvers are alerted to any requisitions made by departments or projects within their jurisdiction.
- Requisitions are restricted to projects that have available remaining funds.
A complete log of the approval process for each requisition is maintained for audit purposes.