For example, if a guest has some problem about the hotel policy, the manager calls the guest for interaction over a coffee or a drink and tries to resolve the same. Some hotels allow the managers to entertain the guests’ queries or grievances, or any possibility of acquiring a business deal over a brief interaction with the guests. Guest account is compiled on a daily basis.Ĭity account is compiled on a monthly basis. It records financial dues not paid or partially paid by the guests at the time of check-out from the front office to the back office. It records all financial transactions of a guest from check-in till check-out.
It is maintained by the Accounts section in back office. It is maintained by the front office completely. It is created when a guest fails to settle the bill completely at the time of check-out. It is created at the time of reservation or registration. It is the record of financial transactions between the non-guests and the hotel. It is the record of financial transactions between the guests and the hotel. Here are some prominent differences between a guest and a city account − Guest Account There are following typical accounts in hotel business dealing with customers −ĭifference Between Guest and City Account To organize and report the transactional information.To track the transactions throughout the guest’s occupancy.To handle transactions between the guests and the hotel accurately.The objectives of accounting system are − Objectives of Front Office Accounting System Most of the contemporary hotel businesses employ automated accounting system.
Where debit increases the outstanding balance and credit decreases it. Net Outstanding Balance = Previous Balance + Debit – Credit The payments are entered on the right side of the ‘T’. In the domain of front office accounting, the charges are entered on the left side of the ‘T’. In the simplest form, a front office account resembles English alphabet ‘Block-T’. It is a systematic process in which the front office accounting staff identifies, records, measures, classifies, verifies, summarizes, interprets, organizes, and communicates financial information for a hotel business. Let us know more about the accounts section of front office. It provides a clear information to the guests thereby avoiding any unpleasant surprises to the guests. When it comes to a hotel business, accounting is managing expenses and revenue. It is helpful for the management to take appropriate decisions. The accounting department handles the financial health and tracks the performance of any business directly.
Accounting section of any business or organization tracks, records, and manages the financial transactions of the business with its customers and clients.