Traditionally, in restaurants, hotels or cafes, accounting was done using manually maintained books and ledgers by accounting staff or through a software hosted locally on a desktop’s hard drive. This used to be time consuming and an overwhelming process. Whereas now cloud accounting is done by executing entries into a software that is hosted remotely on the cloud i.e. online. Cloud accounting has the same purpose as traditional accounting but makes the process whole lot faster and automatically updates all the financial data and generate business analytics reports.
Stacks of invoices and labor intensive manual reconciliations have been gradually replaced by a single software or application to make accounting or bookkeeping easy. Automating bookkeeping and innovating in accounting department will lead to lower costs, saves time and allows management to focus on the overall guest experience. Also it will also bring higher profits.
As a hotelier or restaurateur you need to adopt new technologies by integrating your departments to effectively streamline your business. Cloud accounting will add to this goal by making following things efficient-
- Financial statements
- Balance Sheets
- Budgets
- Cash-flow statements
- Payroll
Why to opt for cloud accounting?
Earlier while maintaining accounting books through traditional method used to take lot of time of staff as well as the management to gain insights on the same. Data was not up to date when it came to earlier systems, also it worked on a single computer making it difficult for more people to access the customer details or financial data of a branch. To understand the monetary position of your hotel business, financial statements of each department becomes crucial to know. As a hotel owner/management, you got to access information including room occupancy, current month’s profit to the previous month and such other insights. Generating those details manually used to consume a lot of time and involve tremendous effort, leading to errors.
To evolve the accounting process and tackle all the hurdles mentioned above, cloud accounting is the solution. Cloud accounting is allowing more and more businesses operating in the hospitality sector across UAE to reduce costs and make better decisions through access to real-time data and reports that can be analyzed and turned into execution worthy insights.
Reduction in costs is one of the most vital benefit of using cloud accounting software. This reduced cost will let you invest in other departments of your hotel or restaurant. This will also lead to reduction in staff costs as the manual processing of invoices and entries is not there anymore.
Huge volume of purchase/sales invoices in hotels or restaurants that used to demand more processing time can be done quickly and in no time with cloud accounting software.
Hospitality sector demands professionals to be more responsive and reactive to guest/customer’s needs or demands. Cloud accounting will let them have that time to gain more insights in other areas of business.
Cloud accounting lets you have access to real time reports. This will help you gain insights on how is your menu working, how are your guests responding to offers and discounts, etc. Your business can thus take advantage of new concepts and trends. This will also speed up the process of introducing new menus or setting up another hotel at a new location.
Contact Horizon Biz Consultancy for Cloud Accounting
So we can say that if you want to level up your accounting service or improve your profits while simultaneously reducing your costs and saving time then go for cloud accounting. Become a tech-savvy hotelier or restaurateur by adopting cloud accounting to tackle accounting process and improve efficiency of the business.
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