As a hotelier, you need to manage the cash flow efficiently as it’s the lifeblood of your business. When it stops moving smooth, everything becomes rigid and there would be less chances of survival!
According to a survey, 82% of the business failures are claimed due to the poor cash flow management.
Failure to interpret and manage your cash flow should never happen, especially when you are cruising in the Hospitality Industry.
Every payment and receivables, including bills, checks, bank statements, item receives, guest sales, vendor purchases must be recorded. In fact, everything that goes in and out of your business has to be tracked.
Keep an eye on your Cash Flow
It’s mandate to keep in touch with your bookkeeper or accountant to know, how healthy your cash flow is. Make sure your expenses are not exceeding your income. Identify any possible potential issues and quickly fix them.
Although it becomes tricky for you or your accountant to generate cash flow reports for each property, as it involves manual efforts of logging into various resources. See the help of Hotel Accounting Software!
That’s how you can prepare accurate cash flow projections and alter the risks that may arise in the future. All the outlays like inventory, taxes, and hotel supplies can be accounted.
Better Managing Your Cashflow
The two major areas involved for better cash flow management are payables and receivables.
When you get paid instantly for the service you provide or sale made will never allow the cash flow problem to arise.
By switching to Hotel Accounting Software, you can promptly do the invoicing by adding and importing your customer data into the system, for the goods and services supplied.
It becomes really easy for you to track your accounts receivables and stay alert on your aging invoices to follow up with slow-paying customers.
Likewise, your expenses must be watched carefully to conceal the underlying cash flow problems. Hotel Back Office Accounting Software lets you examine and get a better control on your payables.
Maintaining good knowledge on the vendor payments will help you retain then and build strong relationships. One time OCR scanning with your accounting partner must import your vendor invoices and convert them into your bills, by which your accounting staff can easily preview and approve them.
With a minimum accounting knowledge and less complexity, if you can manage your financial records and generate cash flow reports day-wise, weekly or month-wise & even year wise, then that is the Hotel Accounting Partner you need to shake hand with.
Gathering the reports manually and performing the analysis to trace the cash flow is not an idea practice. Go for an authentic Hotel Accounting Software that can actually manage all your financial records through seamless reporting structure, more than just creating cash flow statements.
As your business changes and grows, you’ll need a diversified accounting practices running in your hotel background. Do checkout ‘Nimble Property’ which falls in the same lineup, more than a software it also provides bookkeeping services to collect all hotel/hotel chain data and turn ‘em into tidy financial reports.
Thanks for sharing…
Nice Blog, Thank you for sharing a valuable topic.
I have read so many posts on cash flow however this post
is truly a nice post, keep it up.
Such an informative article. Thanks for the post.
Thanks. Great guide.
Write a blog on a ‘cash flow statement’ – It can help in focusing on creating excess cash. Thank you! good read