In short, the ‘Chart of Accounts’ or COA is identified as an index of all your hotel business’s financial accounts in general ledger. With the means, an accountant can breakdown all transactions into subcategories, which were made in the course of specific time period.
COA allows you to gain insights into your hotel financial effectiveness, letting you segregate your revenue, expenses, assets and liabilities.
Howbeit, it also matters how you gonna organize your hotel’s chart of accounts.
Spreadsheets is now a bygone era, it’s now the time to embrace technology and automation driven software, which lets you integrate your existing procedures. Nimble Property is the most love hotel bookkeeping software by hoteliers which lets you seamlessly integrate your PMS and lets you consolidate and streamline your accounting data by mapping into the right chart of accounts. Wherein, you as a hotel owner, accountants and managers can altogether have a hawk-eye view on the hotel financial happenings.
On a wider perspective, you will have a vivid visual of your crucial subcategories like Accounts Receivables, Assets, Expenses and even Inventory info.
You need to understand that staying top of your hotel’s chart of accounts becomes integral as it provides clear financial health and looking over day-to-day operations become effortless.
Besides, it makes you hotel business comply with your financial reporting standards. Consistency is the key, if you aspire to improve your chart of accounts. Make sure it stays intact for a longer time periods, as it becomes easy to compare results and act strategically. Altering COA every now and then makes it only increasingly difficult to gain insights on your hotel financial information and nearly impossible to drill down to transaction level.
Nimble Property understood all the gaps in managing COA on spreadsheets, developed hotel bookkeeping software that lets you organize chart of accounts at a manageable size, while letting you monitor everything on an intuitive cloud-accessible dashboard.
Property-wise chart of accounts are clearly listed in Nimble, wherein you can track the account balances without any intricacies.
Within few clicks, you’ll be able to generate hotel-specific financial reports that assists in making better business decisions. Handling chart of accounts in a manual manner leads to issues of incorrect account usage, immaterial account balances, extensive accountant training, higher audit costs, and erroneous financial statements.
Chart of accounts structure, especially if you’re in hospitality world must be effective, as it indirectly or directly drives your hotel’s financial performance, can break or make your business strong, and it is well organized with the means of accounting software, once configured well it stays undefiled.
If you as a hotel owner ignore organizing chart of accounts which is the foundational thing, then get ready to face limp situation with unmet financial goals.
Most of the hoteliers set up their chart of accounts maybe once in a long while, get busy and miss an eye on it which only results nightmare.
The ideal thing is to outsource it if you’ve no time for it, as it can be incredibly impactful, taken care of and results in raising your financial performance to the next level.
Final Thoughts:
The chart of accounts in hotel business is an alpha attribute which needs to be considered to gain a financial accountability and business effectiveness. Without it, embarking a successful hospitality journey would likely be as a high-cost disaster. It’s all for your hotel’s elegance, switch to a reliable hotel accounting software and bookkeeping service provider like Nimble and keep your chart of accounts in order, numbers accurate and consistent.
