The Benefits of working with a Hospitality Specialist Accountant

Managing a company within the hospitality industry is challenging, especially during recent times. Whilst general accounting practices still apply for hotels and restaurants, there are some practices that are specific to the industry. For this reason, it can be extremely valuable to have someone with expertise in this area. Here we discuss the benefits of working with a hospitality specialist accountant.

They help you focus on your specialisms 

Like any business owner and manager, you have a lot of tasks to do on a daily basis. The hospitality sector is notorious for its fast-paced and sometimes stressful and hectic environment. The last thing many people want to do is spend their precious time focussing on the accounts or having to explain the industry specifics to a general account. This is where a hospitality specialist accountant can be invaluable to your company. They are on hand to know the ins and outs of your business and the industry as a whole, leaving you to do what you do best – running the business.

Help you define and reach your financial goals

It is sometimes challenging for business owners to define their financial goals as they are too busy running the day-to-day and ensuring it is going smoothly. This is where a hospitality specialist accountant can help. They can help you form a clear picture of the direction you want the hospitality company to go in and how realistic these goals are.  They then use their specialist knowledge and years of experience to discover ways to reach these financial goals. This could be identifying areas where you can save money, how to make the most of your assets, and increase profit.

Specific Accountancy training for the hospitality sector

Hotel and hospitality accounting involves more complex practices and procedures that your accountant must be aware of. Whilst the traditional elements of accounting are of course necessary, there are additional things to take into consideration. Things like varying room rates, additional charges made to rooms, vendor contracts, late charges, etc.

The amount of money made by a hotel, restaurant, or other hospitality business depends on the average daily rate as well as the occupancy levels. For this reason, the recent closures caused by the pandemic have made working this out more complicated than it has ever been before.

Even though the lifting restrictions meant restaurants and hotels could reopen, there was the additional challenge of enforcing social distancing. This meant the occupancy rate is severely affected and in a constant state of flux.

With hotels, there are also no fixed prices. The same room can cost considerably more during peak season. This can heavily impact the revenue and needs to be monitored carefully. A hospitality specialist accountant will be able to do this efficiently.

Up to date on legislation 

Legislation changes rapidly. The hospitality industry comes with its own rules and regulations your accountant will need to be aware of. One of the greatest benefits of working with a hospitality specialist accountant is that they will be aware of any legislation changes probably a lot quicker than you would be. As they have several clients in the same sector, it is their job to stay on top of these changes and be ready to create and act on a plan as soon as possible. Your accountant will also be aware of any grants or tax-saving initiatives that you can take part in. This is therefore invaluably saving you both time and money in the long run.

Highlight other revenue streams 

Whilst the main revenue streams for many hospitality businesses are obvious, there may be some additional revenue streams that you have not considered. Alternatively, you have thought about them but didn’t know if they were realistically financially viable. Your hospitality specialist accountant can aid you in either case.

It is also important to monitor these revenue streams and acknowledge that they are different. For example vending machine sales, restaurant sales, bar sales, conference room hire, and more. It is important for effective hospitality accounting that these different revenue streams are recorded separately in order to give you a clearer picture further down the road. Your accountant will be able to do this for you and help review the data to highlight the most and least profitable areas of your business and which potential areas of your business you have not tapped into yet.

Can recommend hospitality accounting software

To make the work of your accountant even more effective, a hospitality specialist accountant will be able to recommend specific hospitality software that can take your business and accounting to the next level. Hospitality accounting software is often cloud-based and helps you access business information in real-time. A major pitfall for many in the hospitality industry is not keeping track of cash flow effectively. Accountancy software has made this easy as possible. As your business grows, you can adapt the software to specifically meet your requirements creating a tailored approach. Management can easily access daily finances whilst also being able to access future trends and revenue simply. Companies that embrace the software will be able to ensure KPIs (Key performance indicators) are met or exceeded. The software also allows for increased automation as well as provides a wealth of information specific to the industry and any latest updates.

Regardless of what business you are in, if it is within the hospitality industry you will be able to benefit from working with a hospitality specialist accountant. They have extensive experience and knowledge about the financial side of the operations and will be there for you whenever you need their advice and skills. This can take a load of weight off your shoulders, leaving you to focus on the running of the business, not the accountancy side. You can effectively work together to become as efficient as possible, monitor the areas to cut back costs, explore future revenue streams, and much more. Together, effective decision-making can take place that can help boost your business and help your business grow.