Matakuliah
Tahun
: A1042/Accounting Software Package for
Services
: 2010
INTRODUCTION
Pertemuan 1-2
Hospitality Industry
Hospitality Industry:
• Hotel
• Restaurant
• Club
• Resort
• Casion
• Cruise ship
• Theme parks
• Recreation
• others
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The Purpose of Accounting in the Hospitality
Industry
• Simple and important question for hospitality managers:
– What was the total sales level achieved by our business last
month?
– What was our most popular menu item?
– What was our least popular one?
– What was the average selling price of our hotel rooms last
week? Was that higher or lower than our competitors?
– Are we more or lest profitable this month than last month?
– What is our company realistically worth if we wer to sell it today?
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• The questions that connot be best answered by using
accounting information alone:
– Our hotel swimming pool currently closes at 10:00 p.m. Would
we sell more guest rooms if the pool were to remain open 24
hours per day instead? How many?
– Should I select Jackie or Samuel as the person assign to train
our new dining room wait staff?
– Should the size of the fish portion used to make our signature
“Blackened Trout” be 8 ounces or 11 ounces?
– Would our country club members prefer to have an increse in the
number of inexpensive, or of higher quality (but more costly)
wines, when we create the club’s new wine list?
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• Accounting alone could not make the decisions called for
in the questions above, when properly used, it can help
you make better decisions about these types of issues
than those that would be made by managers who do not
understand how accounting could help them.
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Why Hospitality Managers use Managerial
Accounting
• Hospitality accounting is not a separate branch of
accounting, but it is a very specialized are that focuses
on those accounting techniques and practices used in
restaurants, hotels, clubs, and other hospitality
businesses.
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Uniform System of Accounts for Hospitality
• Uniform system of accounts for the lodging industry
• Uniform system of accounts for restaurants
• Uniform system of financial reporting for clubs
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Uniform System of Accounts for Hospitality
• Uniform system of accounts for the lodging industry
(USALI)
– USALI was developed in New York in 1925 by members of the
Hotel Association of New York City Inc.
– The USALI developed Hospitality Financial and Technology
Professionals (HFTP) and the Educational Institute (EI) of the
American Hotel & Lodging Association (AH&LA).
– www.ei-ahla.org
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Uniform System of Accounts for Hospitality
• Uniform system of accounts for restaurants (USAR)
– Prepared for the National Restaurant Association (NRA) by
Deloitte and Touche LLP, assits restaurant operators by
suggesting a common language for the industry and by giving
them an opportunity to compare the results of one restaurant to
another and one accounting period to another. In addition, it
allow those managers using it to compare the financial results of
their own operation to industry norms.
– www.restaurant.org
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Uniform System of Accounts for Hospitality
• Uniform system of financial reporting for clubs (USFRC)
– Club management is another example of an industry segment
that requires specialized knowledge and thus, its own uniform
system of accounts.
– The USFRC is a club accounting resource for club managers,
officers, and controllers.
– It is produced through the joint efforts of Hospitality Financial and
Technology Professional (HFTP) and the Club Managers
Association of America (CMAA). The USFRC is a financial
reporting system geared specifically to member-owned, not for
profit city and country clubs.
– www.cmaa.org
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Hospitality Accounting Overview
• Hospitality business operations cycles:
– Daily operating cycle that applies particularly to restaurant
operations where daily sales revenue typcially depends on meal
period.
– Weekly cycle, business travelers normally use hotels, motels,
and other hospitality operations during the week and generally
provide little weekend hospitality business.
– Seasonal cylce, that depends on vacationers to provide revenue
for hospitality operations during vacation months.
– Generalized business cycle, will exist during a recession cycle
and hospitality operations typically experience a major decline in
sales revenue.
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• Accounting cycles, encountered in hospitality operations
create unique difficulties in forecasting revenue and
operating costs.
– since hospitality operations are people-oriented and people
driven, it is more difficult to effectively automate and control
hospitality costs than it is in other nonhospitality business
sectors.
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11 of the most critical GAAP
•
•
•
•
•
•
•
•
•
Distinct business entity principle
Going concern principle
Monetary unit principle
Time period principle
Cost principle
Consistency principle
Matching principle
Materiality principle
Objective principle
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Hospitality Business Case
Cash Reserves
Profits
Supplies
Account
Receivable or
Cash
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Used to Purchase
Raw Materials
and Labor
Produces
Finished Products
Generates
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• The raw materials are processed (meals are produced,
and guest rooms are prepared) by workers who create
finished products. The money resulting from these sales
is then used to buy additional products or, if profits are
generated, some of it may be retained by the business.
Professional accounting records the movement of funds
during this business flow or cycle. In each section of the
flow chart, transactions are made and recorded.
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For example, when a restaurant uses its cas reserves to
buy steaks for esale to guest, an accurate record is
made of the product purchased and the amount paid for
it. Because the double entry accounting method is
always used, a record would be made in at least two
different restaurant accounts. In this steak example,
upon their delivery, there would be an increase in the
value of the restaurant’s food inventory and a
corresponding decrease in the restaurant’s cash account
(if the restaurant paid cash for the steaks) or an increase
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in its account payable total (if the steaks were purchased
on credit). Purchase orders and vendors’ invoices make
up a large part of the accounting documentation that will
be analyzed by hospitality managers.
when the steaks are received, stored properly, and
eventually prepared, money will be spen on payroll as
well as the other ingredients required to sell the steaks.
As a result, payroll records and records releted to
purchases of equipment, supplies, and other food,
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In addition to the non-food items needed to operate the
restaurant, are important documents in this segment of
the hospitality business cycle.
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• In the hospitality industry, records related to various
guest payment forms such as credit, debit, entertainment
cards, cash, and checks are important to maintain.
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