Reasons Why You Should Outsource Your Hotel’s Accounting

Recent years have seen a dramatic shift in the hospitality industry as more and more hotels have begun to outsource many of their back-office services. From human resources to IT, many hotel owners are finding that outsourcing certain departments can vastly benefit the performance of their investment by helping reduce operating costs while simultaneously improving quality of service. Perhaps the most valuable department for owners to outsource is the accounting team.

Of course, outsourcing your hotel’s accounting needs is an important decision to consider, but knowing the various ways in which it can benefit your bottom line will help you determine if it is right for your property.

1. Cost Savings

The primary force driving many businesses to outsource personnel is financial, and outsourcing your hotel’s accounting staff can bring about significant savings. In fact, companies that outsource accounting needs have been known to save as much as 50% when compared to the costs of maintaining an in-house team.. Eliminating your in-house accounting department will lower your overhead costs, as you will not have to worry about the costs associated with hiring, training, and providing benefits to an entire hotel accounting department.

Accounting Cycle2. Higher Level of Expertise

Not only can you save on accounting expenses by outsourcing your hotel’s accounting department, but you can also gain access to highly skilled accountants with wider range of experience and knowledge than you would have likely found for your in-house accounting team. This isn’t because the accountants at smaller properties are less skilled, but rather because hiring managers are not accountants and therefore don’t always know what to look for when hiring accountants to join their team.

3. Improved Operating Efficiency

Outsourcing your hotel’s accounting needs can actually improve the efficiency of your hotel operations as well. Superior accounting methods can ensure that accounting records are accurate and that no costly mistakes are made, which can boost your hotel’s overall efficiency.

Additionally, resources that had previously been dedicated to maintaining your hotel’s accounting department can now be reallocated to support your front office team, helping to improve your guest service.

4. Access to Superior Hotel Accounting Tools

Not only will outsourcing your hotel’s accounting needs give you access to highly skilled accountants, but it will also ensure that you benefit from state-of-the-art hospitality accounting tools. While small in-house hotel accounting departments often lack the resources to stay on top of new accounting tools and methods, a dedicated accounting department from a hospitality management firm will be up-to-date on the latest accounting technologies and methodologies. Owners then benefit from this expertise, further increasing the hotel’s efficiency and the overall performance of the asset.

5. Collaborative Accounting

The fact is that many franchised hotels do not have a full accounting department, as they often only have the resources to keep one or two accountants on staff. When a team of accountants is able to collaborate, work will always be double checked, ensuring that you receive the best services possible. By outsourcing your accounting needs as a part of a comprehensive service agreement with a hospitality management partner, you will benefit from collaborative accounting, further improving the quality of the accounting services you receive.

Many hotel owners mistakenly believe that cost savings is the only benefit of outsourcing. While savings are often the driving force that leads people to make this decision, outsourcing departments like accounting can actually increase the efficiency of your property overall. Contact Us to learn more about how your hotel could benefit by outsourcing your hotel’s accounting department.

About Twenty Four Seven Hotels
Twenty Four Seven Hotels specializes in providing hotel management, investment and development for upscale brand select-service and lifestyle hotels segments in the Western U.S. We offer a full spectrum of services in Hospitality Management, Hotel Investment, Hotel Design & Construction and Hotel Asset Management.

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