THM201: Front Office Management

1. THM201:Front Office Management Guest Accounting: Lesson Objectives Understand the objectives of guest accounting Be able to describe the three methods of preparing a bill Understand what Petty cash is Explain the different methods of payment available Possible exam questions

2. Introduction to Guest Accounting FO responsibility to prepare the guest’s bill, present it, and ensure that it is paid Dealing with this transactions would be relatively easy if they could be put on a simple cash basis Details of the various transactions must be collected from different departments of the hotel and put on the guest’s bill before she leaves

3. Objectives of The Guest Accounting Procedures To maintain accurate and up-to-date guest accounts To ensure that payment is received promptly and in full To provide management with accurate and up-to-date financial reports The third objective will be discussed in later classes

4. Guest Accounting There are three main methods of preparing guest bills: The tabular ledger Electro-mechanical or electronic billing machines Computerized guest accounting systems

5. Guest Accounting The tabular ledger Oldest and most labour intensive method The tab produces: A record of all charges, credits, payments and outstanding balances A separate total for each guest’s bill A separate total for each category of item Refer to Figure 35 Horizontal tabular ledger

6. Guest Accounts Electro-mechanical or electronic billing machines Handwritten tab remains suitable for small hotels However, the need to handle large numbers of posting led for various models of billing machines from the 1930’s onwards – which have now been replaced by computerized guest accounting systems; however - You may still find them as back-up systems They can be operated even if the power goes off (very relevant in TRNC Does generally do the same job as tabular ledger billing !), but on a audit roll (Summary of each room/guest)

7. Guest Accounts Electro-mechanical or electronic billing machines (Continued) Billing machines offer the following advantages All bill entries are simultaneously recorded and therefore in memory Calculations are handled automatically Bills are printed rather than handwritten Control is easier Refer to Figure 37 Guest bill produced by a billing machine

8. Guest Account Computerized guest accounting system A major advancement for speed and efficiency. Computer offer all the advantages of billing machines, and additional one, as follows: A further reduction in the number of entries Reductions in the number of vouchers or posts Easier access to bills Greater detail Even greater accuracy There are however two main disadvantages The operator needs more training The systems are more prone to breakdowns

9. Guest account Computerized guest accounting system (Continued) Most systems will have certain features te same Main menu will have a ‘cashier’ and ‘billing’ mode You will enter all posts at the point of sale and therefore automatically The system will require you to enter an ID Refer to Figure 38 On-screen display of guest statement

10. What is Petty Cash? Not apart of the guest accounting procedure Petty cash s almost always dealt with by the ‘float system’ Small incidental payments are made out of this float Receipt must be obtained where possible Otherwise a ‘petty cash voucher’ may be accepted instead as long as this is countersigned by a senior member Refer to Figure 39 Petty cash voucher

11. What is Petty Cash? Some of the payment may be made out by the guest (Toothpaste or change to pay taxi etc.) These VPO’s (visitor pay outs) must be recorded as quickly as possible Reconciliation is carried out on regular intervals (Daily or weekly) Petty cash records are not usually computerized, but instead maintained by petty cash book Refer to Figure 40 Analyzed petty cash book

12. Methods of payment Guests can settle their accounts in a variety of ways: Cash Cheque Eurocheque Foreign Currency Traveler’ cheque Credit card ‘Smart’ card Travel agents’ voucher Transfers to ledger account Activity Sheet

13. Possible Exam questions Explain the objectives of guest accounting Describe the three methods of preparing a bill Explain what Petty cash is Explain the different methods of payment available for guest at FO