One of the most critical facets of a hotel’s operations is its finances. While some hotels continue to stick to traditional spreadsheets, modern FP&A software has grown prominence in the sector.
Hoteliers now see the need to employ modern technologies to improve efficiency and bridge the gap between the old and the new to remain competitive. Amidst the current disruption from the ongoing pandemic, it’s essential to ensure that the entire financial management procedure is error-free and expeditious.
The Need for Modern Financial Management Tools in the Hospitality Sector
In the hotel industry, accountants are responsible for a wide range of tasks. As a result, in addition to providing correct month-end account statements, they must also devote time to preparing budget reports, prepare balance sheets and financial information, and create cash flow statements.
The financial health of a hotel can only be understood by looking at the financial statements for each department. Deep insights can be gathered from data such as how your room’s price compares to the competition or the current month’s earnings over the previous month. It takes a lot of time and effort to generate and obtain these details manually. Errors are also an everyday possibility.
In the past, keeping track of a hotel’s finances took a great deal of time-consuming physical labor, which required key persons to verify, summarize, add, and subtract manually from the records.
Those who haven’t made the switch to hotel accounting software are forced to spend much time dealing with mounds of bills. As a result of obsolete information and a lack of quick access, employees find it challenging to work together effectively. Modern accounting methods bring much convenience.
We’ll explore the core advantages hotels can gain by automating their financial management system.
Automation leads to accuracy
A hotel accounting system may generate invoices, account statements, payslips, and more quickly and accurately. Automated routine tasks have eliminated all human errors. If the data is entered correctly, you can expect improved accuracy in all mathematical calculations.
Accessible from anywhere
You can access your accounting data from any location and device if you use a cloud-based financial management software. This means all of your financial data is available in real-time, including accounts receivable and accounts payable, as well as a glimpse of your cash flow.
Accessibility & Efficiency
Data entry is a breeze because of the intuitive interface used in modern FP&A. It’s easy to update online and grant access to only those who need it. Sharing information is made more accessible by having a lot of storage space. As a result, your hotel’s accounting process will move more quickly than using manual procedures. It also improves the productivity of your employees.
Tech-savvy hoteliers have now used strategic financial management software to accomplish various activities, including accounting.
Convenient & Saves Time
Easy use and integration of your ERP system with financial management software like Performance Canvas Financials can save hotels time and money. It can streamline the entire FP&A process to shorten the reports and budgets cycle time and improve accuracy in reporting.
In addition to saving time and money, using a financial planning tool can lead to faster turnarounds for crucial decisions specific to the business. It’s relatively easy to set up, doesn’t require any hardware installs, and comes with easy upgrades because it works through the Internet.
Financial management for hotels doesn’t have to be as stressful as many fear it to be. Modern financial management solutions offer numerous advantages that can impact the hotel industry’s finance methods.
Performance Canvas for Financial Management
PCF is a cloud-based software that automates financial reporting, budgeting, planning, KPI management, and consolidation. It is a consolidated platform for FP&A.
The good thing about Performance Canvas is that it is an effective add-on to your existing ERP system, which means hotels can continue to maximize their ERP investment. With PCF integrated into their system, hotel finance teams can easily create budgets, reports, and forecasts for their company using data from their ERP system.
It’s up to hotel companies to decide which PCF reporting and analysis, budgeting and planning, forecasting, financial consolidation, and business intelligence features to use, but there are plenty of capabilities ready to be used out-of-the-box if preferred. They can utilize these features or add more modules like Sales or HR depending on their current needs.
To get a feel for navigating Performance Canvas, get in touch with our team for a free demo today.
