The
hospitality industry is continually up against daunting challenges. The global
and local economy is always in flux, as hotels and restaurants deal with fierce
competition, fickle and demanding consumers, fluctuating prices, and frequent staff
turnover.

The
seasonal nature and often 24/7 services offered within these companies creates
a flood of transactions being recorded daily. Everything from purchasing a
beverage at a restaurant to reserving a hotel room online results in sales for
the company, which ultimately requires validation from Accounting.

As
a result, finance and accounting teams spend an untold amount of hours manually
reconciling bank deposits and credit card transactions with data from
point-of-sale (POS) and other third-party data systems.

And,
unlike other industries, hospitality
organizations
sometimes manage portfolios of properties or hotels, which frequently
requires the preparation of multiple financial statements.

So,
keeping the general ledger (or multiple general ledgers) accurate and up to
date can seem like wishful thinking, even when you’ve dedicated a small army of
accountants to manage these financials.

A
manual, spreadsheet-driven approach to complex and high-volume transactions
introduces multiple issues that can take a bite out of performance and
profitability:

  • Inefficient,
    error-prone work
  • Expensive,
    labor-intensive manual processes
  • Inability
    to quickly spot and resolve discrepancies
  • Limited
    visibility into store cash and deposits
  • High
    risk of manual errors and oversights

Throwing
more accountants and spreadsheets at the problem is not the answer. Hospitality
accounting teams need automated solutions that can enhance visibility, control,
and efficiency across their unique financial management processes.

Register
for our upcoming webinar
to hear how Hyatt and the Best Western Premier
Grand Canyon Squire Inn modernized their finance and accounting functions with
automation. Then, read on to learn more about how your organization can take
control of the financial close.

Managing Complexity & Compliance

Hospitality
organizations have complicated operating and ownership structures, making it
difficult for accountants to ensure compliance with international laws and
regulations.

It
may be reasonable to manage finance and accounting across a handful of
locations with Excel and an entry-level accounting application. But as the
business grows, visibility at Corporate is extremely difficult, and the ability
to drill down into data at each entity becomes increasingly impossible.

Expanding
to dozens or hundreds of locations increases an already onerous workload,
limiting the ability to scale. Global locations introduce the complexity of monthly
financial and intercompany consolidations across multiple locations, in
addition to daily reconciliation, verification, and validation processes.

Automation is a Key Ingredient for Success

Accounting automation
is the most effective solution, and can deliver the error-free financial close
so critical to both compliance and reputation. The right technology equips accounting
teams to automate complex, manual, and repetitive processes while increasing
the speed and accuracy of reconciliations.

When
the reconciliation process is automated and standardized, transactional issues
can be identified and resolved in hours or days, not the weeks often needed
with a manual approach. And minimizing manual accounting work eliminates a
significant obstacle to growth, while also mitigating the risk of error and
fraud.

Automation
provides the real-time
visibility that hospitality accounting teams need
to ensure optimal
regulatory compliance in this era of heightened compliance rules and
enforcement.

The
right platform provides the highest degree of data integrity and the level of performance visibility
required to improve cash flow management and revenue forecasting.

Save your spot at our May 16 webinar to hear how Best Western Premier Grand Canyon Squire Inn and Hyatt embraced automation, increasing visibility and streamlining the month-end close.


The post How Hospitality F&A Teams Can Achieve Digital Finance Transformation appeared first on BlackLine Magazine.