Hotel and Villa Accounting: A Practical Finance Guide
Hotel and villa accounting should connect reservations, guest transactions, settlements, bank records and the general ledger. This guide is a starting point for the chart of accounts, reconciliations, payroll, monthly closing and owner reports.
Map Transaction Sources Before Choosing Software
Transaction sources may include the PMS, POS, OTAs, direct bookings, card payments, bank accounts, petty cash, payroll and vendor bills. Determine who enters data, when it becomes final and which reference numbers are used. Software supports processing, but document connections and correction controls still need to be designed.
Define the Chart of Accounts and Separate the Parties
Separate revenue, amounts owed to other parties, operating costs, assets, liabilities and equity according to reporting needs. Villa management also needs to distinguish operator transactions from transactions belonging to the owner. The account structure explains balance categories; account codes help the system place transactions in the correct groups.
Reconcile Revenue and Receipts
Booking values, current period revenue, guest bills and bank receipts can differ. Explain deposits, refunds, commissions, taxes and settlement timing through working papers. Build a trail from booking ID to journal entry. Do not assume an OTA’s net payment always equals the revenue to recognise.
Connect Payroll and Service Charge
HR and payroll data need to agree with financial records and bank payments. For service charge, distinguish billing, collection, allocation and payment. Create a control account that can be broken down by period. Distribution figures and employee tax treatment must follow the rules and the business’s actual circumstances.
Close the Period with an Exception List
Monthly closing includes finalising transactions, reconciliation, balance review, approval of adjustments and checking reports. Add every unresolved difference to an exception list. Record the amount, source, period, responsible person and next action so the following period does not begin with unexplained balances.
Use Reports for Owner Decisions
Profit and loss, financial position and cash flow reports answer different questions. Profit does not always equal available cash. An owner statement needs to be traceable to the management contract and general ledger. Determine the accounting framework and presentation requirements with someone who understands the business profile; sample accounts in an article are not a universally mandatory format.
FAQ Hotel and Villa Accounting
Does a PMS Replace the General Ledger?
Not necessarily. A PMS is an operational data source that needs to connect with the bookkeeping system.
What Is the First Step If OTA Reports Differ from Bank Records?
Trace bookings, deductions, refunds and settlement timing before preparing correcting entries.
