Accounting Automation in Hospitality Business
by Pankaj Kumar |July 30, 2019
Predominantly, accounting is defined as systematic process of recording, classifying, summarizing and analyzing the financial transactions and interpreting and reporting their results into a useful form called Financial Statements.
Accounting is considered as an inescapable task for every business enterprise. If you really want to take imprint of your business, accounting is the only solution for this. Accounting does not scrutinize the business nature or it size. It has to be followed by each single firm voluntary for better management of their business.
Although hospitality industry generally includes customers based services, but they too have to involve in accounting process to get deep glimpse of their business. But often, accounting functions are neglected while look after your customers and making them pleased from your services. This situation may give emergence to the need of automation into your hospitality business, mainly in accounting operations.
Automation is just a way of carry on accounting process with the help of any machine or technology. The technology field has experienced gigantic advancements within just last decade. And even hospitality industry is emerging towards introducing latest technology into their firm for enhancing their services. Although several hospitality business has already given green signal to automations, but still this concept is newer in this industry.
Automation in the hospitality sector is been in introduction for managing the back end functions but majority of the restaurants or hotels are introducing them for enriching their front house operations for guest services like serving their customers. But for Accounting, it is advantageous for streamline all your business operations of daily nature. The amount of accuracy in seen in accounting just wholly proportion to the automation involves in achieving the business operations.
Here listed some of the common approaches to introduce automation in the accounting for your hospitality business:
Accounting Software
Accounting softwares act as synonyms for the word of automation in the business world. There exist several accounting software which are specifically designed according to your business nature and need. Also for the hospitality business, there are softwares which can fulfill all your business requirements as per size and requirement of your business. Accounting softwares can assist you in smooth-running of your business activities as in:
- Recording of daily transactions of business regarding any expenses, costs or other incomes or any bank activity.
- Automatic recording of day-to-day sales transactions with specialized sales softwares or Point of sale system.
- Managing your Account Payables or Account Receivables with tracking their bills and invoices until the exchange of payment is done.
- You can handle payroll activity of business resulting in higher accuracy in calculating their wage pay. Special payroll management softwares are also available.
- You can insight your every single business operation with the help of diagrams, charts and graphs provided at dashboard.
- Online accounting software system gives you the access to your business 24/7, from anywhere.
Integration Business Applications and Mobile Software
Integration and mobile facility is the bonus in the accounting software, which upgrade the level of automation in business activities.
Accounting software has the capacity to synchronize several business applications into it for getting all the financial transactions directly into the software system. As these apps are linked to the software, the fetching of all the transaction is mechanically done. In case for, Bank transactions, A/P and A/R records, bills and invoices.
Mammoth of accounting software also provide the facility of mobile software to get overview to your business from any place and at any time. It seems to be that you operate your business from your hands. Not even a single transaction is overlooked by you.
Inventory management
Other than helpful in handling your daily sales, Point of Sales System (POS) is cooperative in managing the inventory specifically for the food businesses. Inventory is the vital component of these businesses and it is mandatory to keep proper stock valuation of it. POS system can automate this function by providing to view the stock items left behind.
Customer Relationship Management
As the hospitality industry revolves solely around the customers based services, so it is fruitful if they adopt automation even for the customer relationship function. There are plenty of CRM softwares available in the market for making and planning strategies for handling the customers.
Other Technological Advancements
Technology has not solely impacted peers life but in addition it re-designs the business world. By every passing day, technology is becoming dynamic. Hospitality industry is also welcoming the technology advancements in them, which results in positive perspective for the accounting.
Billing System
No need to get hustle between your customer’s orders and completing them on time. POS system generates the automatic bills which not only improve customer services, but also make easy to track your daily orders for recording.
Online Payments
Online payments have made similar and easy task for both, customs and service providers. It is the economical and secure way for the payment for the consumers. And for the businesses, it is the penny-pinching technique when you are about to record your transaction into your accounts. Online transactions are very easy to record and to keep them as an evidence for longer duration.
With the assistance of automation, the businesses prevailing in the hospitality sector not only streamline their business well, but additionally eliminate their overhead costs from the business. Not depending upon in the size of the hospitality business, automation is always helpful in inclining the overall productivity and efficiency for your firm. When your back end activities are managed well, hopefully your front desk operations work in an equalization approach.