Accounting Software for Hotels: A Buyer’s Checklist

Accurate and efficient financial management is vital to hotel operations. Hotel owners, managers and CFOs understand the critical role that accounting software plays in streamlining processes, providing meaningful insights and supporting informed decision-making. However, with so many options available, choosing the best hotel accounting software for your property can be a challenge.

This buyer’s checklist will simplify that task. It explores key features and benefits to look for, discusses important considerations and shares best practices. Whether you’re a small, independent inn looking to automate accounting processes or a large multi-property chain seeking to standardize financial management across locations, this guide can provide a framework for choosing the right solution that aligns with your hotel’s unique needs.

What Is Hotel Accounting Software?

Hotel accounting software is a tool for managing both the general and the specific financial and bookkeeping needs of hospitality industry businesses. A transformative upgrade from manual ledgers and spreadsheets, accounting software streamlines and automates financial processes, providing more accurate and timely recordkeeping and enabling real-time visibility into financial performance. This, in turn, supports better management decision-making to improve cash flow management, increase profitability and steer business success.

Automated accounting systems digitize financial operations and ensure that all transactions are accurately recorded. Hotel accounting software reduces the amount of manual work needed to maintain accounting data by automatically pulling information into a central database from various primary sources, such as bank accounts, subledgers and point-of-sale (POS) systems. This also helps to keep information up to date. Automation improves the quality of accounting data by minimizing errors and discrepancies that can arise from manual bookkeeping. It also eliminates poor bookkeeping practices, such as unreconciled accounts, which can lead to serious consequences, including stolen funds, tax penalties and cash flow shortages.

In addition to core accounting functions—recording transactions, managing accounts receivable and accounts payable, reconciling accounts and generating financial statements and reports—some accounting software offers features and integrations tailored to the specific requirements of hotels, resorts and other lodging businesses. These features include employee payroll management, which represents one of the largest hotel costs, and automated invoicing, which is particularly important for hotels because a significant portion of their revenue comes from a high volume of guest folios and ancillary services.

Key Takeaways

• Hotel accounting software streamlines financial management processes, provides real-time insights and enables data-driven decision-making, ultimately contributing to a hotel’s overall financial success.
• When selecting hotel accounting software, consider essential features, such as automated billing and invoicing, expense tracking and management, financial reporting and analytics, and compliance and tax management.
• Use this 30-question comprehensive checklist to guide the evaluation and selection of the best hotel accounting software for a property.
• Investing in the right hotel accounting software empowers hoteliers to hone financial operations, enhance profitability, and focus more on delivering exceptional guest experiences.

Hotel Accounting Software Explained

A common first step when choosing accounting software for a hotel is to decide between generic accounting software that can integrate with hotel-specific applications or specialized accounting software tailored to the hospitality industry. Both categories have pros and cons. Generic software may be familiar and offer some customization options, but typically lacks the depth of functionality and seamless integration that many hotels require to effectively manage their financial needs.

In contrast, hotel-specific accounting software is designed to address the distinct challenges faced by hospitality businesses. These specialized solutions offer features and integrations, such as the ability to track multiple revenue streams, manage guest folios and integrate with property management systems (PMS) and POS systems. By seamlessly connecting various hotel departments and automating financial processes, these industry-specific tools help establish a smoother flow of work — and information — than generic accounting software can provide.

When selecting specialized software, the next choice is between hotel accounting software and hotel enterprise resource planning (ERP). Hotel accounting software focuses primarily on financial management, offering capabilities such as room revenue tracking, daily night audits, and performance reporting based on industry-standard metrics, like revenue per available room (RevPAR) and average daily rate (ADR). On the other hand, hotel ERP systems take a more comprehensive approach, integrating accounting functions with other core hotel operations, such as procurement, inventory management, and human resources. This holistic view of hotel operations enables even better resource allocation, cost control, and strategic planning.

Ultimately, the choice between generic accounting software, hotel accounting software, and hotel ERP depends on the specific needs and goals of the property. Hotel accounting software may be sufficient for smaller properties or those primarily focused on streamlining financial processes. However, larger hotels or hotel chains seeking to improve operations across multiple departments may benefit from the broader scope and integration capabilities of an ERP system.

Benefits of Hotel Accounting Software

Hotel accounting software provides real-time visibility into financial data, enabling hotel owners and managers to make better-informed decisions quickly. As a result, hotel management and the accounting team can spend less time generating numbers and more time acting on insights to drive profitability and growth. Additional benefits include:

• Access to information in real time: By integrating with various hotel systems, including PMS and POS, the software automatically updates accounting and operating data as transactions occur. This real-time visibility allows hoteliers to monitor financial performance, identify trends, and respond promptly to any issues or opportunities.
• Enhanced financial reporting: Hotel accounting software makes it easier to generate financial statements and management reports for various stakeholders, including owners, investors and department heads. These reports can highlight opportunities and challenges and facilitate better communication among those stakeholders. The software can use standard or customizable reporting templates and draws on a shared database to ensure consistency and accuracy across all reports. Plus, an ability to drill down into specific data points improves the quality and ease of follow-up analyses.
• Ability to manage expenses effectively: Tracking and controlling the various costs associated with daily operations, such as labor, supplies and food and beverage expenses, is easier and less time-consuming with hotel accounting software. The software handles detailed expense categorization, automates approval workflows, provides real-time budget comparisons, and alerts managers when costs exceed budgeted amounts.
• Support for strategic decision-making: More accurate and timely financial data helps hotel managers make better-informed strategic decisions. It also helps them track the actual results from past decisions. For example, a dashboard of key performance indicators (KPIs), such as RevPAR, ADR and occupancy rates, can help users benchmark performance against industry standards and competitors, alert managers to adjust pricing strategies, or to highlight growth opportunities.
• Scalability with business growth: As a hotel grows and expands, its financial management needs become more complex, with multiple revenue streams, remote workers, consolidation of multiple entities and a higher volume of transactions. Hotel accounting software is designed to scale with the business, accommodating these complexities and ensuring efficient financial processes and reporting across multiple properties, currencies, and tax jurisdictions.

Key Features of Hotel Accounting Software

When evaluating hotel accounting software, it’s important to consider the following six universal features, which refine financial processes and support informed decision-making. Ideally, by identifying the features that are most crucial to your hotel’s success, you can choose software that offers the right core capabilities while also accommodating your business’s growth plans and individual challenges, such as managing a portfolio of properties, offering boutique guest experiences, or having unique ancillary revenue streams.

• Automated Billing and Invoicing

  Automated billing and invoicing simplifies the process of generating and sending invoices to guests and clients. This feature automatically pulls data from various hotel systems to create accurate invoices fast, reducing staff time and effort and potentially improving cash flow, because sending invoices faster and with fewer errors speeds collection. Moreover, automated payment reminders encourage corporate clients to settle their bills more quickly, decreasing the risk of late payments or defaults. Effective implementation requires seamless integration with the POS and PMS systems, along with good staff training.

• Expense Tracking and Management

  Expense tracking and management helps hotels monitor, categorize and analyze expenses, and provides visibility into spending patterns. This feature assigns expenses by department and/or product line, such as events or spa, which makes it possible to track actual spending against budgeted spending — in real time. It also supports tracking of large capital expenses, like construction and renovations, which is crucial for hotels undergoing expansion or improvement projects.

  Effective expense tracking and management helps improve budget and forecast accuracy and can help identify areas where costs can be reduced to boost profitability by aligning expenses with revenue. For example, a hotel can monitor food and beverage costs, housekeeping supplies, or utility expenses, and quickly identify discrepancies or overspending. Tracking expenses by department or product line gives hotels a deeper understanding of the performance of specific areas of their business, which can then be addressed individually. To maximize the benefits of this feature, hotels should establish clear expense categories that match those outlined in the Uniform System of Accounts for the Lodging Industry (USALI) guidelines.

• Financial Reporting and Analytics

  Accounting software typically generates standard financial statements, such as income statements, balance sheets, and cash flow statements. These provide a detailed picture of the hotel’s performance, financial health and liquidity. Income statements showcase the hotel’s revenues, expenses, and profitability over a specific period; balance sheets offer a snapshot of the hotel’s assets, liabilities, and equity at a given point in time; and cash flow statements track the inflow and outflow of cash, which is necessary for managing liquidity and meeting financial commitments to suppliers, employees, and other stakeholders.

  Beyond these standard statements, better accounting software also features customizable reports and dashboards that consolidate data from many sources. These management reports allow hoteliers to regularly review financial and operating metrics and identify trends—even in real time. Hotel accounting dashboards should include hospitality industry KPIs such as RevPAR, ADR and occupancy rates, which can provide an at-a-glance overview of hotel performance. With the drill-down features offered by some hotel accounting software, analyses can get very granular when needed.

  Hotels can take analysis a step further if their accounting software includes advanced analytics capabilities. Predictive analytics is a powerful tool for revenue management and forecasting, profit margin analysis, and expense forecasting. Artificial intelligence is another powerful capability, embedded in some accounting software, that can analyze vast amounts of data to identify trends, patterns, and anomalies. By leveraging financial reporting and analytics, hotels can detect potential challenges before they escalate into larger issues, or they can identify opportunities early on. For example, a hotel manager can use the reporting feature to identify a decline in RevPAR during a specific period, investigate the underlying causes, and implement targeted marketing campaigns or pricing strategies to improve performance.

  Data accuracy and consistency across all systems is essential for good reporting, and to avoid misleading or faulty analyses. It’s also important that the reporting templates in the accounting system be reviewed regularly and updated to align with evolving business needs.

• Compliance and Tax Management

  Hotel accounting software can help businesses comply with the hospitality industry’s complex regulations. It can help hotels adhere to various financial reporting standards, including USALI, by providing a compliant chart of accounts and generating reports that align with industry best practices. Hotel accounting software assists with tax management by calculating and tracking various types of taxes, such as sales, payroll, and income taxes, and can do so across multiple jurisdictions with different rules, when applicable.

  By automating tax calculations and reporting, hotels can reduce the risk of errors, penalties, and legal consequences associated with noncompliance. For example, a hotel with properties in multiple states can use the compliance and tax management feature to accurately calculate and report sales tax based on the specific rates and rules of each jurisdiction. The software can also generate tax forms, such as W-2s for employees and 1099s for contractors, withhold payroll taxes, and remit them according to federal and state regulations.

  Hotel accounting software often includes features that secure storage and processing of sensitive financial data. This is particularly important given the increasing focus on data privacy and the need to comply with regulations, such as the General Data Protection Regulation and the Payment Card Industry Data Security Standard. In fact, the American Hotel and Lodging Association identifies cybersecurity and privacy as one of the top five technology concerns in its 2024 State of the Industry report. By leveraging built-in security measures, such as data encryption, access controls and audit trails, hotels can protect their financial information from unauthorized access, breaches and potential legal liabilities. This can also build trust with guests and partners by demonstrating a commitment to safeguarding their sensitive information.

• Bank Reconciliation

  Comparing a hotel’s financial records against bank statements is a crucial internal control that can be time-consuming and error prone if performed manually. Automated bank reconciliations save significant time and reduce the risk of errors because the software imports bank statement data and automatically matches each transaction to a corresponding entry in the accounting system. Discrepancies are flagged for review, allowing the team to quickly investigate and resolve issues. As a result, staff time can be redirected toward more strategic tasks, such as identifying cost-saving opportunities or refining cash flow forecasts for the upcoming quarter.

  With this feature, it’s important to make sure that the chosen software can securely integrate with the hotel’s bank systems and that it can handle the number of accounts, currencies, and transaction volume specific to the hotel. A proven track record and robust data security features are essential, too.

• Daily Sales Automation

  Daily sales automation involves generating a daily sales report by pulling data directly from the PMS and POS systems into the accounting platform. Automating this process shortens the time staff spends on manual data entry and lowers the likelihood of costly manual errors. Accurate, real-time sales data makes quicker, better-informed decision-making possible. For example, if the daily sales report shows a sudden drop in revenue from the hotel’s restaurant, the hotel can promptly investigate the cause and take corrective action. This could mean adjusting menu prices, offering promotions, or reorganizing staffing levels. Faster identification of the root causes of revenue shortfalls means business leaders can solve them more quickly, helping support profitability. To avoid compatibility issues or data synchronization problems down the road, make sure, up front, that the accounting software can seamlessly integrate with the hotel’s existing PMS and POS systems.

Hotel Accounting Software Buyer’s Checklist

When the time comes to select a hotel accounting system, there are so many aspects to consider that it can be daunting to wrap your mind around them all. The following checklist of 30 questions, broken down into 13 categories, covers everything from scalability and integration to reliability and training from a hotelier’s perspective. For a different perspective, there is also this generic checklist of 19 accounting software requirements to help small businesses find the right software fit.

1. Scalability and Flexibility

• Can the software grow with your business? As hotel operations expand and evolve, the accounting software must be able to keep pace without requiring significant changes to hotel processes—or forcing the business to start over with a more capable system. Scalable cloud-based accounting software accommodates growth by offering tiered pricing, the ability to easily add new users or properties, and a flexible architecture that supports customization and integration. For example, can the software support “intercompany” functionality for managing shared expenses across multiple properties or business units, if locations are added? Choosing a scalable hotel accounting solution better positions the business to maintain a consistent, efficient financial management process that avoids the costs and headaches of having to switch systems.
• Does it support the needs of both small and large hotels? Hotel accounting software should be flexible enough to meet the unique needs of properties of all sizes, from small independent hotels to large multi-property chains. Smaller hotels may prioritize simplicity and cost-effectiveness, while larger hotels require advanced features, such as multi-property management, centralized reporting and robust security. The best solutions offer customizable modules and pricing plans tailored to each property’s specific requirements, regardless of size.

2. User-Friendly Interface

• Is the software intuitive and easy for your staff to use? An intuitive and user-friendly interface reduces employees’ learning curve, minimizes errors, and aids successful software adoption. Clean, organized layouts allow users to easily navigate to the features and data they need without confusion or frustration. Menus, icons, and buttons should be clearly labeled and logically placed. Similarly, the software’s workflows should be easy to follow, featuring clear, concise language, and helpful prompts to steer users through common tasks and procedures.
• Does it require minimal training for new users? Selecting a system that requires minimal training reduces onboarding costs, helps smooth transitions when team members change roles, and can boost the accounting team’s productivity. To evaluate the training requirements, consider whether the vendor offers a variety of resources, like video tutorials, webinars, and step-by-step guides, that cater to different learning styles. The software’s documentation should be comprehensive, up-to-date, and easy to understand, with clear instructions for common tasks and troubleshooting. Ideally, the system also should provide in-app guidance, such as tooltips or context-sensitive help, to assist users as they work.

3. Integration Capabilities

• Does the software integrate seamlessly with your existing systems (PMS, CRM, booking platforms)? Seamless integration between accounting software and the hotel’s PMS, customer relationship management (CRM) software and booking platforms is crucial. The integration should support automatic transfer of critical data, such as room revenue, occupancy rates and guest information. This eliminates the need for manual data entry, reducing the risk of errors and saving valuable staff time. Real-time data synchronization helps ensure that financial reports and forecasts are always based on up-to-date information.
• Can it connect with other essential hotel management tools? Check that the selected solution can connect with other essential hotel management tools such as POS, revenue management software, payroll, and human resources platforms. Integration among all these systems can create a comprehensive, centralized repository for the hotel’s financial data, providing a holistic view that makes it easier to track performance, identify trends, and generate inclusive reports. When evaluating hotel accounting software, inquire about the vendor’s integration capabilities and whether they have prebuilt connectors or application programming interfaces that facilitate integration.

4. Customer Support and Training

• What kind of customer support is available (24/7, live chat, phone support)? Consider the level and quality of customer support provided by the vendor. Hotels operate around the clock, so look for vendors that offer multiple channels of 24/7 support, such as live text chat, phone support, and email or ticket-based systems. Live chat and phone support provide instant assistance for urgent matters, like when a guest is standing at the front desk. Email and ticket-based support systems are suitable for less pressing inquiries.
• Are there comprehensive training resources and onboarding assistance? A smooth transition to new hotel accounting software requires comprehensive training resources and onboarding assistance. Evaluate the vendor’s training and onboarding offerings, such as on-site or virtual training sessions, video tutorials, webinars, user guides, and knowledge bases. These resources help staff become proficient with the software, shortening the time it takes them to climb the learning curve and minimizing disruptions to daily operations. Inquire about ongoing training and support to keep the team current with the latest features and best practices as the software evolves and as business needs change.

5. Cost and Budget

• What are the initial setup costs and ongoing subscription fees? It’s essential to have a clear understanding of costs. Initial setup costs may include expenses for software installation, data migration, and staff training, while ongoing subscription fees typically cover the cost of using the cloud-based software and receiving updates and support. Request detailed pricing information, including any additional costs for features, modules, or integrations that may be necessary for the hotel’s current—or future—needs.
• Does the software offer good value for its price? Determining value can be a subjective exercise. Consider the features, functionality, and benefits the accounting software provides in relation to its total cost of ownership. Take into account the potential long-term cost savings and revenue growth that can be achieved through improved efficiency, accuracy, and data-driven decision-making. While it may be tempting to opt for the lowest-priced solution, keep in mind that investing in more comprehensive and feature-rich software can often provide greater value in the long run.
• Are there any hidden costs or fees? No one likes to be surprised by hidden costs or fees. To avoid unexpected expenses, thoroughly review the vendor’s pricing structure and contract terms. Don’t hesitate to ask for clarification before making a final decision. Extra charges are common for things like additional users, modules, or features, as are fees for data storage, transaction processing, or customer support. Some vendors may also charge for software updates, integrations, or customizations, which can significantly increase the total cost of ownership over time.

6. Security Features

• Does the software provide robust data security measures (encryption, secure access controls)? Data security is a growing priority for all businesses, so seek solutions with robust security measures, such as data encryption, secure access controls, and permission-based access to sensitive information. Encryption helps keep financial data protected from unauthorized access, while secure access controls, such as multifactor authentication and role-based permissions, help prevent data breaches and maintain the integrity of financial records. Permission-based access and reporting features allow hotel managers to control who can view, edit, and share specific financial data, safeguarding sensitive information for access only by authorized personnel.
• How frequently are security updates and patches applied? Similarly, inquire about the vendor’s process for identifying, developing, and deploying security updates and patches, as well as the frequency with which these updates are released. Ideally, the vendor should have a proactive approach to security, with a dedicated team that continuously monitors for potential threats and works to develop and implement timely solutions. Regular security updates and patches help ensure that your hotel’s financial data remains protected against the latest cyberthreats to minimize the risk of data breaches and other security incidents.

7. Customization Options

• Can the software be tailored to fit the specific needs of your hotel? Accounting software should be flexible enough to adapt to a hotel’s needs, rather than forcing the hotel to change its processes to fit the system. Solutions should offer a range of customization options, including a configurable chart of accounts that aligns with the hotel’s financial structure and USALI standards; customizable financial reports and statements; flexible data entry and import options; and the ability to create custom fields, templates, and workflows. For example, if a hotel applies revenue recognition rules in a particular way, or requires specific cost-allocation rules, the software should allow for the configuration of its settings to match the hotel’s business practices.
• Are there customizable reporting and dashboard features? The ideal solution should support real-time, actionable insights into the hotel’s financial performance through intuitive, customizable dashboards and reports. Key features to look for include role-based dashboards that display relevant KPIs and metrics for different users, drill-down capabilities that allow users to explore data at a more granular level, customizable report templates, report scheduling that automatically generates and distributes reports to key stakeholders, and mobile-friendly dashboards and reports that can be accessed from any device.

8. Key Functionalities

• Automated billing and invoicing: Does it streamline the billing process? When choosing among software options, look for systems that can generate invoices based on predefined templates, automatically apply taxes and fees, and send them to guests or corporate clients via email or other digital channels. The more hands-off, the better. It’s also helpful to have real-time updates on invoice status, such as whether it has been sent, viewed, or paid. This gives the collections team additional information when following up on outstanding payments and avoids awkward discussions with guests who have already paid.
• Expense tracking and management: Can it effectively track and manage operational costs? Categorization is the key to effective expense tracking and management. Choose software that supports expense categorization by department, cost center and/or project, with appropriate levels of—customizable—subcategories for each. This makes it easier for analyses and reports on the data to pinpoint areas of overspending or potential cost savings. Additionally, look for a system that can incorporate budget information to track actual expenses against budgeted amounts and generate variance reports.
• Financial reporting and analytics: Does it offer comprehensive reporting and data analytics? Any system must, of course, produce the standard financial reports, such as balance sheets, income statements, cash flow statements, and budget vs. actual comparisons. Look for software that also can create custom reports tailored to the hotel’s specific needs. Software that offers drill-down capabilities helps examine data at a more granular level to better identify trends, patterns, and anomalies that may impact the hotel’s financial performance. Predictive analytics and forecasting tools, supported by artificial intelligence, add additional benefits that help the team analyze larger data sets and more accurately anticipate future financial outcomes.
• Compliance and tax management: Does it support adherence to financial regulations and tax laws? Automating compliance and tax management processes reduces the risk of errors, penalties, and legal challenges. Hotel accounting software features, such as automatic tax calculations based on local and national tax rates, tax reporting, and filing capabilities, assist with tax compliance and management. If appropriate, find software with tools for managing and reporting on value-added taxes, goods and services taxes, and other region-specific tax requirements. For compliance purposes, be sure that the software can provide audit trails to document all financial transactions and any changes made within the system.
• Bank reconciliation: Can it simplify the process of matching bank statements with financial records? Automated bank reconciliation can save time and improve the accuracy of accounting data. Seek hotel accounting software that simplifies and automates the bank reconciliation process by importing bank statements electronically, automatically matches transactions between the bank statement and the accounting records, and highlights any discrepancies or unreconciled items. Some advanced solutions may also offer features like automatic transaction categorization based on predefined rules, further streamlining the reconciliation process.

9. Reviews and Reputation

• What do other hotels and industry professionals say about the software? Research the experiences and opinions of other hotels and industry professionals who have used the systems on your short list. Reading reviews, contacting referrals, and examining case studies can provide valuable insights into the software’s strengths, weaknesses, and performance in real-world situations. Pay particular attention to feedback on factors such as ease of use, customer support, integration capabilities, and the ability to customize the software for specific hotel accounting needs.
• Are there positive reviews and testimonials from similarly sized hotels? In addition to general reviews, seek out testimonials from hotels that are similar in terms of size, market segment, and operational complexity—their experiences may be more relevant for you. Try to find comments that highlight the software’s quantifiable impact on key metrics such as accuracy, staff productivity, and time to value. If possible, reach out to these hotels directly to ask about their experiences with the software, including any challenges they faced during implementation and how the vendor addressed their concerns.

10. Trial and Demonstration

• Is there a free trial or demo version available? Before committing to new hotel accounting software, take a test drive to experience and evaluate its features firsthand. Many software providers offer free trials or demos. During the trial period, involve key members of the accounting and finance teams to gather their feedback and assess the software’s ease of use and potential impact on their daily tasks.
• Can you test the software with your actual data to see how it performs? Ask the software provider to let you import a sample of the hotel’s data into the trial or demo version. This will allow you to evaluate the software’s performance in a more realistic scenario, testing features such as data import and export, financial reporting, and integration with your existing systems. By using your own data, you can better assess the software’s ability to handle the hotel’s specific accounting requirements, identify potential data compatibility issues, and determine whether the system can generate the reports and insights that align with the hotel’s unique business needs.

11. Updates and Maintenance

• How often does the software receive updates? Inquire about the frequency of updates and whether they are included in the subscription or maintenance fees. Frequent updates maintain the software’s compatibility with the latest operating systems, security protocols, and industry standards. They also demonstrate the provider’s commitment to addressing user feedback, fixing bugs, and enhancing the system’s functionality over time.
• Are new features and improvements regularly added? Ask about the provider’s plans for future development, how they prioritize new features, and whether they seek input from their user community to guide their innovation efforts. Added features and improvements can help your hotel stay ahead of the curve, continuing to streamline more processes over time.

12. Mobile and Remote Access

• Does the software offer mobile access for on-the-go management? Mobile access to accounting software is a must-have feature for many hoteliers. It allows managers and other key decision-makers to monitor financial performance, approve transactions, and generate reports from their smartphones or tablets, even when they’re away from the office. This flexibility is particularly valuable for hotel owners or executives who oversee multiple properties or frequently travel across locations. The mobile version should provide a user-friendly experience, with easy navigation, clear data visualization, and the ability to perform essential tasks.
• Can it be accessed remotely by authorized users? With remote access, authorized users should be able to securely log in to the system from any location with an internet connection. This feature especially benefits hotels with multiple properties, as it allows centralized accounting teams to manage finances for all locations from a single platform. It also allows hotels to offer work-from-home positions. Furthermore, remote access fosters collaboration with external stakeholders, such as owners, investors, and financial advisers, by providing them with secure, real-time access to relevant financial data. Remote access must be paired with robust security measures, such as encrypted data transmission, multifactor authentication, and customizable user permissions, to protect sensitive financial information and prevent unauthorized access (see No. 6).

13. Performance and Reliability

• Is the software known for its reliability and uptime? Because hotels operate 24/7/365, reliability and uptime are crucial factors. Downtime disrupts transaction processing, such as generating customer invoices, which can lead to disgruntled guests. Ask providers for information on their uptime statistics, server infrastructure, backup systems, and disaster recovery plans to help ensure that the hotel’s financial data is always secure and accessible.
• Does it perform well under heavy usage? Slow response times, freezing, or crashing can frustrate users and hinder productivity, particularly during peak business periods or when multiple users are accessing the system simultaneously. Ask about scalability and performance under heavy loads. Choose solutions built on robust, enterprise-grade technology that can efficiently process large amounts of data and support multiple concurrent users. Some providers may offer case studies or performance benchmarks demonstrating their software’s ability in high-volume scenarios. It’s also a good idea to test the software’s performance during a trial or demo period, simulating real-world usage conditions to confirm that it will meet your hotel’s needs.

Increase Operational Efficiencies With Unified Hospitality Management Software: NetSuite

In the highly competitive hospitality industry, a robust and well-integrated financial management system is essential for success. NetSuite’s cloud accounting software centralizes all financial data, streamlines core accounting processes—including accounts receivable and accounts payable—and can automate revenue recognition and bank reconciliations. NetSuite’s real-time reporting, multi-property management capabilities and advanced analytics provide deeper insights into a hotel’s financial health. Its cloud-based platform offers scalability and accessibility so that finance and operations can be managed from anywhere, at any time.

Moreover, NetSuite goes beyond traditional accounting software, offering a comprehensive suite of tools tailored to the unique challenges of the hospitality industry. From revenue management to inventory control, NetSuite’s unified ERP can help to optimize every aspect of a hotel’s operations. By eliminating manual processes and integrating critical systems, NetSuite frees up staff to focus more on delivering exceptional guest experiences.

Selecting the right hotel accounting software is a pivotal decision that affects a property’s financial management, operational efficiency, and overall success. By carefully evaluating the key features, benefits, and considerations outlined in this comprehensive buyer’s checklist, hoteliers can make an informed choice that aligns with their unique needs and goals. From core accounting functions and automated processes to industry-specific reporting and integration capabilities, the ideal solution should streamline financial tasks, provide real-time visibility into performance, and support data-driven decision-making. Ultimately, investing in a robust and scalable hotel accounting system can help properties of all sizes improve their financial operations, enhance profitability, and deliver exceptional guest experiences in an increasingly competitive market.

Hotel Accounting Software FAQs

What accounting system do hotels use?

Hotels typically choose between generic accounting systems and specialized accounting systems designed for the hospitality industry. Generic systems include the ability to link with specific hotel systems, such as property management, whereas specialized systems are built to handle the unique financial requirements of hotels, including revenue management, property management, and guest billing.

What software do most hotels use?

Most hotels use a combination of software solutions to manage their operations, including property management systems, point-of-sale systems, customer relationship management, and accounting software.

What is the hotel accounting method?

The most common hotel accounting method is the Uniform System of Accounts for the Lodging Industry (USALI). USALI provides a standardized framework for recording and reporting financial data in the hotel industry, allowing for consistency and comparability across properties. This method organizes financial information into specific categories, such as revenue centers, cost centers, and departmental statements.

What software do hotels use for recordkeeping?

Hotels typically use specialized accounting software designed for the hospitality industry to manage their financial recordkeeping. These solutions often include features such as a hotel-specific chart of accounts, daily revenue and occupancy reporting, and integration with point-of-sale and property management systems.

Can I use QuickBooks for a hotel?

While QuickBooks is popular accounting software for small businesses, it may not be the best choice for all hotels. QuickBooks lacks some of the industry-specific features and integrations that specialized hotel accounting systems offer. However, some smaller hotels or bed and breakfasts may find QuickBooks sufficient for their needs, particularly if they have a limited number of rooms and a simple operation.