Problem Faced by Businesses in the Hospitality Industry

In the hospitality industry, high priority is given to customer satisfaction. It is highly dependent on the availability of leisure time and disposable income. People are spending more on experiences, and hence hospitality is growing. The hospitality industry consists of 4 sectors – lodging, food & beverage, travel & tourism and recreation. The food & beverage sector is one of the most popular sectors in hospitality. From restaurants, cafes, diners and clubs, there are endless types os businesses one can venture into. But there are some challenges faced by the hospitality industry, which are –

Limited Resources

Businesses have limited resources in terms of human resources and space. Hiring in-house bookkeepers and accountants mean losing out on operation space for workstations, placement computer systems, and so forth, which can be utilized for operational purposes.

Seasonal Business

A business might not have any guests for a while in off-seasons, while there might not be any vacancy available in peak seasons. The revenue is exceptionally fluctuating.

Unpredictable Events

The industry gets very quickly affected by an external factor, and in such case, people do not travel. The industry is highly dependent on the availability of leisure time and disposable income. It can suffer significantly to the extent that a lot of small businesses have to close their operation.

How does Whiz Consulting Help you Tackle these Issues?

We have provided accounting and bookkeeping for the hospitality industry for over a decade now. We understand how the industry and its different sectors operate, and we understand that Accounting and bookkeeping services in the hospitality industry are quite challenging. So, with our service, we help you tackle bookkeeping challenges with our bookkeeping and accounting services for the hospitality industry.

At Whiz, you can take advantage of a group of qualified accountants. Our experts will assist you at every step of your accounting and bookkeeping. By outsourcing your accounting and bookkeeping functions with us, you can be assured that you can start focusing on your core activity and also reduce your overhead expense.

For times like now, when the world is affected by COVID-19, the hospitality industry is at a halt. Our service will help you survive by helping you to reduce the human resource cost on the accounting department. Otherwise, our service help reduces your dependency on resources like physical space and payroll for hiring an in-house accountant.

Accounting for restaurants does not have to be as complex as you imagine. There are various accounting software for restaurant businesses that will ease accounting and bookkeeping for restaurants.

Services We offer at Whiz Consulting

Bookkeeping Service

We provide the following bookkeeping services –

  • Bank & Credit Card Reconciliation
  • Accounts Receivable & Payable Management
  • Payroll Calculation & Tax Payments
  • Inventory Management & Reconciliation
  • Monthly Financial Statements
  • Financial Ratios Reporting
  • Budgeting Quarterly/Yearly
  • Cash/Revenue/Expenses Forecasting
  • KPI Reporting
  • Strategic Advice on Managing Revenues, Expenses & Cash Flows
  • Planning Individual & Corporation Taxes
  • Finalizing State & Federal Taxes and Payments
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Accounts Payable

We make sure you never breach payment terms with your clients by preparing a daily, biweekly or weekly report for accounts payable and sending the same to you on time. Our outsourced accounting service covers the scanning of invoices to ensure payment terms and other processes that adhere to your company policy. It will be our responsibility to ensure that things are exactly as they should be and inform you when they are not.

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Accounts Receivable

If you are not sure how much you ought to receive from your debtors, you cannot expect your business to sustain, let alone talk about growing. It is essential to make sure you receive what the others owe you that too on time to keep that cash flow moving. We must ensure you receive money from your debtors on time. We provide this by reminding you of the overdue payments or by contacting the clients directly on your behalf.

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Financial Reporting

With years of experience working with US clients, we know exactly what is needed by the regulatory bodies and produce the same for you. We got you covered, whether financial statements, periodic reports, debtor reports, bank reconciliation reports, financial analysis reports, ratio analysis or any ad-hoc report. We can even get in touch with your CPA and make sure everything is there as and when he wants.

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Payrolls

We look after payrolls for our clients, including pay calculation, reimbursement, deduction, payslip generation, amount to be withheld for federal and state income tax, social security and Medicare contribution amount, payment of tax, and tax return preparation. We will be happy to look after all or a part of them for you. Our online accounting service will help you keep a vigilant eye on the complete payroll activity for your business.

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Business Set-Up Assistance & Advisory

We help you out in structuring your business that suggests which business structure will suit you best among Sole Proprietorship, Partnership, Corporation (C Corp, S Corp, B Corp & Non-profit) and Limited Liability Company (LLC).

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TAX Filing

With the experienced Accountant and CPA in our team who has been serving USA Clients for an extended period, we can prepare and lodge your tax returns and also planning your tax liability in the most efficient way

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Why Choose Whiz Consulting for your Accounting and Bookkeeping?

At Whiz Consulting, we provide you with the capacity to focus on the core function of your organization as we help you by taking care of your accounting and bookkeeping services in the hospitality industry. If you are looking for assistance with bookkeeping and accounting for restaurants, cafes, hotels or any other hospitality businesses, here is why you should choose us -

Experience

With over a decade of experience in providing hospitality bookkeeping services & hospitality accounting services which help businesses streamline their accounting.

Cost Reduction

An expert professional bookkeeper and accountant with high experience and in-depth knowledge of the hospitality industry can cost you 70% more than hiring our service.

Compliance

We make sure your business is compliant, helping you to avoid legal issues or penalties. We do so with ease as we are familiar with the accounting principles and existing rules and regulations prevailing to the industry.

Constant Consultation

You can reach out to us for any query, and we provide boundless phone and e-mail consultations with our experts, and they will prepare a customized plan for you based on your particular business needs.

Business Growth

We help bring scalability with our accounting and bookkeeping practices services provided by the expert as we take care of your vital function, and then you can focus on your core function.

Consistent Report

You can make use of the regular detailed financial reports and also customized reports as and when required. These reports help you to make crucial financial decisions.

Frequently Asked Questions (FAQs)

There are certain aspects of hotel accounting that make it different from the other business accounting. Following are the unique aspects of hotel accounting:
• Varying room costs- Costs of the hotel rooms change based on the size of the room, location and change in demand due to weekends and holidays, incidental charges (like damage to the room, food, and beverages) etc.
• Vendor contracts- Hotels have contracts with various vendors for different services, and managing their accounts is necessary. Vendors provide the hotels with food & beverages, supplies for guests, alcohol, etc. They also have varying demands in terms of payments and operations. It is a must that the vendors follow the hotels’ operating standards and procedures, hotel guidelines, and company culture.
• Multiple departments and revenue streams- Hotels have various sources of income such as room rent, laundry, restaurants, bars, etc. A separate account must be prepared for all these sources to keep an accurate track of the businesses’ incomes and expenses.
• Night auditing- Since the hotel is a 24*7 business, it is essential to regularly conduct night auditing to ensure that the entire day’s transactions are in order. It makes the overall accounting smoother in the long run.
Hospitality accounting procedures are rules that help prepare accurate financial statements in compliance with the accounting principles and regulations set up for the industry.
The cost of hiring an accountant differs based on work, location, size of business, etc. But there is always an approximate cost as per the industry standards. Some hospitality accountants charge on an hourly basis, some on an annual basis, while others charge based on the work required. The average cost of hiring a hospitality accountant is approximately $53,468 per year.
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