UNIFORM SYSTEM OF ACCOUNTS FOR

HOTELS
Introduction to Uniform system of accounts
1. Regardless of the business size, Accounting in the perspective of Hotel Industry is all about
recording and retrieving in & out cash-flow.
2. Hotel Accounting is considered as the boon for better decision making that brings in good fortune to
hoteliers if handled efficiently.
3. Beyond that it involves summarizing, reporting and analyzing the hotel’s financial position for a
particular period, further helps in budgeting, forecasting and future cost planning.
4. In general, a Certified Public Accountant (CPA), accountant or a bookkeeper takes care of handling
the accounting activities and generates the financial statements such as Balance Sheet, Profit &
Loss (Income) and Cash Flow, etc.
5. And, these are the most crucial components that communicate the financial information of an
individual hotel or group of hotels.
6. Staying accountable doesn’t end here! Hotel Accounting also involves in keeping the bank account
in sync, streamlining the payables & receivables, analyzing
7. department- wise expenses, generating general ledger, tracking inventory supplies and 1099
payment reports.
8. In terms of Operations front, the accounting plays a key role in Tracking Bills, Recurring Dues, Sales
& Journals Approval, while keeping a tab on Occupancy %, Rooms Sold, Average Daily Rate (ADR),
RevPar, Room Revenue and Guest Satisfaction Surveys, Competition Analysis through STR,
Variance Analysis, Labor Management, Operating Budgets and Financial Benchmarking.
9. On the other side, the Time & Payroll Management, Daily Activity Tracking, Performance Monitoring,
Daily Sales, Profitability Forecast fall in the lineup of Accounting in Hotel Industry.
Contents of the Income Statement
The income statement is a financial statement that is used to help
determine the past financial performance of the enterprise, predict future
performance, and assess the capability of generating future cash flows. It is
also known as the profit and loss statement (P&L), statement of operations,
or statement of earnings.
The income statement consists of revenues (money received from the sale
of products and services, before expenses are taken out, also known as
the “top line”) and expenses, along with the resulting net income or loss
over a period of time due to earning activities. Net income (the “bottom
line”) is the result after all revenues and expenses have been accounted
for. The income statement reflects a company’s performance over a period
of time. This is in contrast to the balance sheet, which represents a single
moment in time