Importance of Night Audit
The night audit is the control process whereby the financial activity of guest’ accounts is maintained and balanced. This process tracks charges and payments (debits and credits) and the departmental receipts and charges on a daily basis. This section is the team that assumes the role of reconciling a hotel’s daily activities and transactions. They compiles a series of reports and data into a report called the night audit report for management review as part of its control procedures conducted at night, when the hotel typically less busy. Functions of the Night Audit:
The major functions of the night audit are to:
a. Verify posted entries to guest and non-guest accounts
b. Balance all front office accounts
c. Resolve room status and rate discrepancies
d. Review guest credit transactions against established limits e. Generate operational and managerial reports
The Night Auditor
The duties of the night audit team:
* The summary and statistical data compiled into the night audit report are generated. * Daily hotel transactions are verified.
* Certain front office functions, such as front desk and PBX are assumed by this team. * Posted entries to guest and non-guest accounts are verified. * All front office accounts are balanced.
* Rooms status and rate discrepancies are resolved.
* Guest credit rate transactions against established limits are reviewed. * Operational and managerial reports are generated.
* The leader of the night audit team mostly serves as the Manager On Duty (MOD) in the absence of senior management.
The Night Audit Manager
Some of his/her tasks may include but is not limited to the following: * Be available for any and all guest relations.
* Maintain accurate notification and documentation.
* Take ownership of all guest relations.
* Make appropriate decisions and follow up with related departments to solve permanently. * Complete hotel inspections on a nightly basis.
* Monitor all departments throughout the evening.
* Maintain an open line communication with all department managers and supervisors at all times. * Post and balance daily charges.
* Review accounts to insure proper procedures are followed and maintained. * Generate work sheets and reports relative to the food and beverages night shift.
Night Audit Management and Control System
On Staffing – To ensure that night audit department is well-manned, distribution of responsibilities is very important. Generally, the night audit team as mentioned is composed of small team as follows: * Night Audit Manager.
* Auditors (two to five, depending on hotel size, including other ancillary operators). * Food and Beverage Auditors (one or two, considering the number of outlets). On Designating and ‘End of the day’ – this is simply the time defined by hotel management which is considered the end of an accounting day, or called as date roll. This is established because the hotel never stops operating so as to know when the day ends and when it starts. This, however, does not necessarily coincide with the beginning if a new calendar day because time of food and beverage outlets. Typical in a hotel operation, the business day ends when the night audit begins. At this point, the hotel staffs, especially the front desks, are trained that from the moment the night audit commences and until it finished, any transactions that occur which may include telephone charges, food and beverage charges and other are to be charged on the following business day so as not to ruin the process. The period when the night audit is taking place is referred to as audit work time.
On Implementing the Night Audit Process
The night Audit process focuses on two major areas as follows: * Discovering and correcting of front office accounting errors. * Creating of accounting and management reports
The main steps of the night audit process...
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