Key Considerations for Your Hotel Chart of Accounts.

This video is part three of a series on key considerations for your hotel chart of accounts. The speaker provides seven important considerations for managing your chart of accounts.

Consideration number four is that select service hotels should not have an F&B department in their chart of accounts. It is common for hotels to share a standardized chart of accounts, but if a limited service hotel uses the same chart as a full-service hotel, they may end up using accounts that are not appropriate for their operations.

Consideration number five is to avoid putting excessive information or creating excessive accounts in your chart of accounts. It is unnecessary to have separate accounts for every small item, such as toilet paper. It becomes difficult to code invoices with so many detailed accounts.

Consideration number six is to be mindful when creating market segments. Adding too many market segments can diminish their value and make it difficult to accurately calculate average daily rates. It is important to train the team on how to use market segments consistently.

Consideration number seven is that budget time is a great opportunity to make adjustments to your chart of accounts. The team can discuss and decide which accounts are appropriate to use in the following year.

Consideration number eight is to mark inactive accounts that are no longer needed, and consideration number nine is to pay attention to any accounts that were used without being budgeted for.

Consideration number ten is to communicate with your team. The team should be familiar with the chart of accounts and where everything was budgeted.

Overall, these considerations are important for ensuring that your financial statements are as helpful as possible. The speaker also mentions that there will be another video in the series discussing helpful patterns in a chart of accounts and considerations for switching to a different chart of accounts.