1. Hospitality Operations
Objective 4.04
Accounting Department

2. Objective 4.04 – Accounting
Financial Transaction – Buying something and paying for it
Ledger – What innkeepers used to keep track of each transaction that took place during the day
Accounting – System of recording and summarizing financial transactions and analyzing and reporting the results

3. Objective 4.04 – Accounting
What is the difference between a “debit” and a “credit”?
Debit – Money that is taken out of the business. Money that you would use to pay bills. A Debit is subtracted from the total
Credit – Money or a payment that has been received

4. Objective 4.04 – Accounting
(5) Main Functions of the Accounting Department
Keep track of all Transactions – The accounting department keeps track of every financial transaction that occurs in the business.
- Payroll – Money paid to employees for their labor
- Taxes – Money paid to the federal, state, and local government required by law
- Software used includes the PMS and POS systems

5. Objective 4.04 – Accounting
2. Make payments and Deposits – All the money that flows in and out of the business
3. Categorize Transactions – Each transaction will have a proper account. Each separate account will be used to keep track of all transactions in one category
- Account – Financial record that lists transactions and shows the balance
- System of Accounts – An organized way of naming and categorizing accounts
- Uniform System of Accounts – Provides uniform names for each category of accounts for use in the Hotel Industry

6. Objective 4.04 – Accounting
Control Costs – The accounting department monitors the costs of items purchased by the business. If the costs start rising they will let the appropriate manager know
Prepare Financial Statements – The accounting department will prepare a variety of statements and financial reports
- Income statement – All revenue made and expenses paid out (also called a profit and loss statement)
- Cash Flow Statement – The way cash (only) moves in and out of the business during a specific period of time

7. Objective 4.04 – Accounting
The Controller
Top Manager of the Accounting Department
Oversees all the operations of the accounting department
Responsibilities Include
Prepare reports based on financial transactions
Supervise the preparation of budgets
Manage the accounting department

8. Objective 4.04 – Accounting
Departments within Accounting
Accounts Receivable
Money that is owed to the business
Accounts Receivable Clerk – Collects the money
Accounts Payable
Money that a business owes to another business
Accounts Payable Clerk – Pays invoices owed
Night Audit
Auditing is completed to discover and correct accounting errors
Night Auditor – Person who completes the night audit
Posting Charges – Entering the charges to a guest folio

9. Objective 4.04 – Accounting
Credit Department
Protect the business from Loss
Credit History – Record that shows whether a person or business pays its bills on time
Food and Beverage Controller
Food and Beverage Controller is the accountant for the food and beverage department of the hotel

10. Objective 4.04 – Accounting
Delinquent Guests – Guests who are late with payments that owe the hotel money
Vocabulary Words to complete: Informal/Picture Definitions
Ledger Delinquent Guests
Payroll Credit
Taxes Debit
Controller Audit
Night Auditor Credit History