How can a hospitality bookkeeping service help you?
May 13, 2022at4:00 AM
In any hospitality setting, there can be a lot of different expenses and other items to keep track of over time, Since a guest’s stay can involve the usage of many different services, there's a lot to keep track of over time; aside from obvious expenses associated with staying in a room for one or more days like electric and water expenses, they may also make use of food services, internet, valet, or other services.
When you’re offering all of this to a shifting number of guests on an ongoing basis, it’s critical that you’re getting comprehensive hospitality bookkeeping services that can keep up with these costs and give you the information you need to make informed decisions and adapt. But is this the extent of a bookkeeper’s services? Not at all; in fact, their services translate into other important functions that help you determine the direction of your operations.
Specifically, there are two major ways in which a hospitality bookkeeper can help you stay on top of the financial and management needs of your services. They can help you better understand your cash flow management based on your revenue, expenses, and other items, and use that information to help forecast future expenses and create an operating budget that allows you to meet guests’ needs and continue operating at as much of a profit as possible.
Better understand your cash flow management
Given the diversity of services that guests can expect from various types of hospitality businesses, there are unavoidably many sources through which money flows out of the company in order to provide those services. By that same token, though, providing these services creates additional avenues through which cash is flowing into the business. With the help of a bookkeeper, you can get a solid understanding of both directions of your business’ cash flow.
Specifically, a bookkeeper can help you understand how the cash flow in and out of your business is linked and at which points you’re losing more than you’re gaining, or vice versa. For example, if your business offers more than one type of service, you may spend more for greater quantity and quality at your location, but the actual revenue generated from those services may not exceed or even make up for the related expenses.
Forecast expenses and create an operating budget
Cash flow statements are one way, in addition to other important financial statements like a balance sheet, to stay informed in terms of what’s generating an acceptable amount of revenue and what’s proving to be too great of a loss when it comes to the services provided by your business. While bookkeepers’ jobs largely revolve around providing you this information as their primary service, it isn’t the only way in which they can help you.
As the financial statements for your business can help you make more informed decisions about what you choose to offer guests and how you should continue to operate it as a business, bookkeepers can help in this decision-making process by offering projections and estimates of future expenses based on the available data.
It may not be immediately obvious to you how current costs, accounts payable or receivable, or other items may translate into future problems for your business, but a skilled bookkeeper may be able to determine the trend and give you an early warning based on your current financial information. From there, you can create a budget that accounts for these problems before they arise.
Work with Vilardi+co to stay on top of your hospitality service's books
Your financials are critical to your business decision-making, especially for any kind of hospitality business. Let Vilardi+co help you stay on top of them with accurate data, expert financial forecasts, and more. To learn more, contact us now!