Key Takeaways:
- Proper accounting is foundational to business success
- Business with proper accounting contributes to society
- It’s not too late for old businesses in the hospitality industry to take on best practices when it comes to accounting via micro-credential courses
Businesses rise and fall according to how they treat their numbers. Whether it’s revenue-related or expansion-initiated, it’s important for a business to be financially healthy from its founding.
This is where the importance of proper accounting comes in.
According to a definition by Merriam-Webster, “accounting” is defined as “the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results.”
The degree of difficulty when it comes to accounting greatly depends upon the nature of the business. Fortunately, for those in the hotel and restaurant enterprise, the accounting done is critical but much simpler as compared to the ones done by accountants in multinational corporations.
That is not to say that hotel and restaurant accounting can be done with street smarts alone. Proper execution of Basic Hotel and Restaurant Accounting is a discipline. There is a process to everything. This is essential to business’ growth and survival. It sort of serves as a checks and balances process for all the revenue generation.
Setting up an office for Basic Hotel and Restaurant Accounting impacts a business in five ways:
Duly Pay Taxes and Fees
No business is without obligations to the local and national government. Businesspeople are huge contributors to society through their tax contributions. The money collected is used to finance projects.
Over 200 years ago, the great American statesman, Benjamin Franklin, sums up the role of taxes in society perfectly: “Our new Constitution is now established, everything seems to promise it will be durable; but, in this world, nothing is certain except death and taxes…”
A hotel and restaurant with proper accounting will not only be able to remain in business but will make its mark in society as a bonafide establishment that is transparent and trusted. Most importantly, these kinds of businesses are the kinds that empower communities.
Make Business Sustainable
A business with no, little, or erratic accounting is doomed to fail from the start. While calculating profit and converting sales is one thing, making sure the money is channeled back into the business properly and operations, among many other things, are sustained.
Accounting is challenging most especially for a business like a restaurant or hotel—where many expenses can be unaccounted for like wastage, spoilage, excess, etc.—basic accounting is needed.
Improve Profit
Basic Hotel and Restaurant Accounting allows a business to run a tighter ship. While the sales are continually bringing in cash, the accounting office is the disciplinarian that strings all the numbers together. There is no room for error in accounting. With this discipline, a culture of excellence can blossom within the different departments in business.
From analyzing expenses and negotiating with suppliers to reducing bad debt and recommending a restructure of financing, accounting can help a business improve profitability. Through this, business expansion is a possibility.
How to Apply
Setting up a business’ basic accounting practices may take time. There is also a hiring process and an onboarding process to consider. Lastly, mentoring is also key to ensure that the business thrives in the hands of capable workers.
If you are starting out, getting a team for your accounting office is a great first step in building the foundation for your business. If you have already started out yet wish to improve in this department, you can consider “upskilling” your current staff.
Upskilling refers to the process of individuals learning new skills. This term was born in light of the boom of the use of technology in the workplace, leaving most workers behind in terms of technological literacy.
There are several offline and online accounting tools available for use today, and training new or old staff on how to utilize them is essential to getting the business on the path of success.
Enroll in a Micro-Credential Program
Eton College Canada offers a micro-credential program in Basic Hotel and Restaurant Accounting. The 40-hour certification course presents basic financial accounting concepts and shows you how they apply to the hospitality industry.
In 40 hours, students are expected to be proficient in defining the 10 steps of the accounting cycle, plus, gain confidence in practicing and defining the role that accountants play in collecting and presenting financial information.
Contact Eton College for more details on their Basic Hotel and Restaurant Accounting micro-credential course.
