Front Office Accounting: Basics of Hotel

Summary

This EBG Bachelor video features Dr. Anguish and Vardar discussing the essentials of front office accounting in hospitality. They cover the significance of an effective accounting system in managing guest transactions, from pre-arrival to departure. Key topics include folio management, types of accounts, postings, vouchers, point-of-sale operations, ledgers, and the role of the visitor's tabular ledger in tracking daily sales and financial management.

Takeaways

• 🏢 Front Office Accounting is essential for managing hotel transactions involving guests and non-guests.
• 📊 It involves various stages including pre-arrival, arrival, occupancy, and departure to ensure accurate financial records.
• 💼 The system's effectiveness is crucial for collecting outstanding balances and depends on its usage and performance.
• 📋 Accounts folios, which are records of financial transactions, are maintained for guests and non-guests to track their financial activities with the hotel.
• 📊 T-accounts are used for summarizing financial data, with debits on one side and credits on the other, showing increases and decreases in account balances.
• 📑 Folio is a statement of all transactions affecting the balance of each individual account, including room charges, phone calls, and other services.
• 📄 Voucher systems are used for recording transactions made by guests, which are then posted in the guest folio for record-keeping.
• 📊 Point-of-Sale (POS) terminals ensure that all charges for goods and services are correctly posted to the guest folios.
• 📈 Ledgers, including guest and non-guest ledgers, are used to summarize accounts and are crucial for financial reporting like profit and loss accounts.
• 📊 The Visitor's Tabular Ledger (VTL) provides a daily summary of room sales, food sales, and other transactions, aiding in revenue analysis.
• 📅 Guest weekly bills are prepared to summarize a guest's account details and are used for settlement upon departure.

Q & A

What is the main topic of the video?

The main topic of the video is 'Front Office Accounting', which is a module from tourism and hospitality focusing on the basics of hotel accounting.

What is the importance of front office accounting in a hotel?

Front office accounting is crucial as it involves a set of procedures to monitor, record, and manage the transactions of guests and groups using the hotel's facilities and services. It ensures the collection of outstanding balances.

What are the stages involved in the guest cycle that an effective accounting system should perform?

An effective accounting system should perform during various stages of the guest cycle, which include pre-arrival (gathering reservation data), arrival (checking room rates and discounts), occupancy (tracking guest transactions), and departure (ensuring payment for services).

What is a folio in the context of hotel accounting?

A folio is a record-keeping device that stores information about guests' and non-guests' financial transactions. It resembles a T-account with charges on one side (debit) and payments on the other side (credit).

How does the balance in a T-account or folio get calculated?

The balance in a T-account or folio is calculated by subtracting the total of the credit side from the total of the debit side.

What are the two types of accounts that the front office has to maintain?

The front office has to maintain two types of accounts: guest accounts, which record financial transactions between the hotel and in-house guests, and non-guest accounts, which may be created for local business or former guests who did not settle their bills.

What is the purpose of a charge voucher in hotel accounting?

A charge voucher is used when a guest receives goods and services from the hotel but does not pay for them immediately. It records the transaction and is signed by the guest, then sent to the front office for posting in the folio.

What is a point-of-sale (POS) in a hotel?

A point-of-sale in a hotel is the location where guests purchase goods or services. It is any section of the hotel that collects revenue for its goods and services.

What is a ledger in hotel accounting?

A ledger in hotel accounting is a book where account summaries of both resident and non-resident guests are entered. It aids in preparing the profit and loss account and balance sheet of a hotel.

What is a visitor's tabular ledger (VTL) and what does it represent?

A visitor's tabular ledger (VTL) is a loose sheet form that records all guests' names, room numbers, and other details for one day. It represents the total daily sale of the hotel and is used for monthly, quarterly, and yearly sales analysis.

What is a guest weekly bill and when is it prepared?

A guest weekly bill is prepared for each guest and is presented on checkout for settlement. It is opened immediately on check-in by the receptionist and contains details of the guest's stay, charges, and payments.