05 Oct
2021
without taking any breaks catering to different kinds of guests. Maintaining the load of check-in and check-outs and optimizing occupancy are some common hurdles hoteliers are facing. To have a smooth cakewalk, the front office must routinely examine and validate the accuracy of accounting records.
What is a night audit?
The night audit is a cyclic analysis of guest account transactions recorded at the front office upon revenue transactions. The process guarantees that all departments of the hotel are operating in sync. It also assures the meticulousness and authenticity of front office accounting. As the front office audit further includes active non-guest accounts.
Importance of night audit
The quality of the night audit cannot be compromised. A night audit process helps in evaluating the accounts of guests and non-guests. It helps in summing the cash flow that happened at the hotel front office in one business day. By doing timely regular night audits, the chances of correct account settlement increase.
Operating night audits in the hotel helps hoteliers in strategizing pricing, commissions, and revenue strategy. It also supports you in improving hotel supervision that eliminates redundant costs.
An ideal time for performing a night audit
A night audit is conducted after the permitted check-in/ check-out period is over. By late night, midnight majority of guests have already left and the hotel common areas, the housekeeping, and other operational departments of the hotel are closed for the day; giving the auditor the expected time and peace to perform the process.
Functions of night audit
The main purpose of a night audit in hotel is to check the correctness and completeness of guest and non-guest records. But it also helps to carry out the following supplementary functions:
Authenticating entries of guest and non-guest accounts.
Evaluating all front office accounts.
Settling room status disparities.
Monitoring guest credit limitations.
Delivering operational and managerial reports.
Steps for night audit process
A night audit is an amalgamation of several micro-processes. All these processes are carried out as per the industry norms and remain pretty much the same for all types of accommodations.
The following conventional steps are common to the sequence of a night audit:
Total outstanding postings.
Reconcile room status disparities.
Balance all departmental records.
Check room rates.
Check no-show reservations.
Post room rates and taxes.
Develop required reports.
Develop cash receipts for deposits.
Clean or back up the system.
Night audit analyzed with Yorevere
The night audit can be tiresome if hoteliers use traditional or manual systems. Adopting the right technology saves time, gives error-free operational and financial reports which shove the productivity of hotel staff. Yorevere's contactless PMS allows you to automate this process and verify all records sent to the front office with ease.
