Hotels, Motels & Hospitality Accounting Services
What services do we provide that are specifically valuable to Hotels, Motels and Hospitality?
Financial Management Reporting / CFO Support
This can involve assisting your internal accountant or bookkeeper to provide:
- Monthly financial management reporting
- By profit centre
- Compared to budget
- Compared to industry benchmarks
Reporting provided this way, rather than by company or entity is fantastic as it allows the business operator and owner to monitor business performance and get feedback on the effectiveness of business actions or current settings, and identify areas that may need closer attention or require changes to the business activity to improve financial performance.
This is very useful where there are continuous opportunities to change business activities - such as change in menu, advertising methods, rates, promotions (bundles etc.) - so that you can monitor the effectiveness of the variations in business activity and in the costs associated with that activity that has been used.
Our work can involve us setting up accounts and account structures in consultation with you that are more useful from a management perspective, and then organising the bookkeeping procedures and systems to match a more useful reporting structure for you.
- It may often mean amending existing entity level reporting, which is very limited use in terms of business performance monitoring and performance feedback.
- It may mean helping you so that your reporting clearly shows a number of profit centres or sub - businesses reported separately (as well as a consolidated report) for each business area - being produced each month.
- It also normally means showing on the financial management reporting, budget versus actual in different comparative periods, and actual versus industry benchmarks.
This service may be of great benefit to you where your business is not yet large enough to warrant its own internal professional commercial accountant, but does use a transactional, junior or intermediate accountant to follow a reporting framework that we can assist your business to establish.
Also we can also help you to review established reporting systems from time to time, with a view to gradual adaptation to changes in circumstances, and your professional staff can implement these.
Interim Accounts and Tax Accountants Estimates and Plans
Once the third quarter is finished it is often useful to get us to take your 3rd quarter financial files and prepare interim financials and tax reconciliations and tax estimates.
This involves us providing:
- An estimate in May / June each year for the current financial year at that time - of income tax liability,
- A schedule of tax installments going forward that we estimate your business will face resulting from that income tax level (so the resulting dates and amounts payable by installment given the new levels of income tax for the current period estimated).
Which allows you to budget your cash flow to meet tax expenses - without surprises.
What are the main commercial accounting services issues we think should be focussed on to ensure a successful business in this area?
The variability in income from some hospitality providers can be a challenge to calls on your cash flow and make it difficult to ensure you have enough working capital at all times.
We recommend regular cash flow statements as well as P&L and balance sheet reporting to be able to manage variability in income.
We have also found some of our clients get a significant financial benefit from attention to rostering and good rostering software - some of our clients have saved 30% of labour cost as a result of introducing rostering software to assist them to get the right labour, at the right cost at the right time.
You wouldn't think a software system could do that, but the system saves you so much time with complex labour scheduling and delivers optimal / cheapest cost alternatives.
Also the fact of often quite different business units within the same business can make managing the business as a whole more of a challenge to have the right financial information to assist in making decisions.
For instance, we understand that often our clients have on the one site:
- Accommodation with exposure to the general even global economy (exchange rates or local economy depending on the location or type of accommodation),
- Food and beverage businesses more exposed to highly local competition as well as the impact on these allied profit centres from the accommodation services.
Commercial Structuring to Facilitate Investment
When you have a good business value proposition that you want to grow as an offer to the market - whether it is a new building concept / approach, a new brand, a new business model / business process / marketing model that you know works well in a particular business - you may want to consider how to attract investors, or how to manage investors ownership of particular elements.
You may benefit from our assisting you to review your business structure before you accept investment capital - to facilitate:
- Clarity as to what those investors have invested in (what their rights and equity interests are, is it the whole business or is it in specific projects etc.)
- Tax effective investment approach for those investors (and not losing any potential tax effectiveness for foundation investors etc.)
- Asset protection for investors (what liabilities are being taken on in the business structure being used?)
- Transparency and accountability in reporting and providing returns to those investors
- Simplicity of exit for those investors as appropriate.
Ask our Brisbane and Sunshine Coast accountants for a fixed fee quote.