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What is Night Auditing and How PMS helps in night auditing procedures?

by admin

A Hotel remains open round the clock for business activities with guest checking-in and checking-out at any time. Similarly, financial transactions are carried throughout the day and night with restaurant bills, laundry charges, or any POS bills either paid right away or added to the guest profiles respectively. Night Auditing is the process by which all these financial activities are recorded and accounted for each of the accounts. There are numerous reports generated in this night audit with room status, business revenue collection, and expected arrivals, etc among them. Usually, these reports are managed by a particular individual called the night manager or night auditor.

Night Audit in Hotel Industry

At the end of every business day, a night audit is carried out to transparently check all the financial activities within an organization that are precisely placed and accounted for, simultaneously keeping a check on the revenue collection for one complete day.
This end of the day audit plays a significant role in understanding the business proceedings every day. Giving hotel manager, owners, and administration staff a subsequent check on the Hotel’s revenue generation and efficiency to carry long term sustenance.

Here are the important functions managed by Night Auditor every day in a large hotel organization:

    • Maintain & record rollovers from one day to another business day for Cash counters
    • Verify Guest entries and accounts
    • Posting all room charges and tax allotment
    • Separating each department financial activities
    • Checking Room status and highlighting discrepancies
    • Keeping a tab on the Hotel Trail balance
    • Generate a report with instructions for the administration and morning staff to follow

Many reports and responsibilities vary from organization to organization being assigned to a Hotel Night Auditor. This is a mandatory process for most of the modern Hotels in carrying their business day activities. Every organization can allot a specific time to perform night audit generally, it is between late evening and early morning time. This is the time when guest activities are at a minimum and Point of Sale System (POS) are often closed to start the night audit procedure. Also, the business proceedings are at the lowest and allowing the process to go smoothly with minimal interruption from any external factor.

How PMS Eases the Night Auditing procedures?

A night auditor must have thorough information for generating reports with Hotel PMS, getting account specifics for each department, and creating instructions for the morning staff. This information gives staff the to arrange and manage proceedings based on the evaluation.Night Auditing Procedures

A Property Management System (PMS) is integrated with all the POS and department information for giving auditors start their proceedings. Here are the main activities PMS helps night auditors in their daily proceedings

    • Guest expenses are automatically updated to their folios for any charges incurred within the organization such as restaurant, room services, laundry, etc.
    • Guest Packages, Room charges with discount or allowance for the next day are posted automatically.
    • Reservation disparity and room occupancy reports are easily generated & double-checked with transactions.
    • Cash counters are updated at the specific POS for ease in monitoring.
    • Instant access to Summaries of transactions from POS.
    • Ease of generated reports from multiple resources

Many reports are generated in the Night Auditing with room accommodation report, no show reports, revenue generation from the room and non-room sources, cash report, tax report, credit report, Guest arrival, and departure reports are the main.

MyHotelLinea completes Hotel PMS software integrated with POS, Booking Engine, Channel Manager and offers mobility options for aiding night auditing activities in every aspect.

A Cloud PMS is highly sophisticated offering uniform experience for multiple-platform accessibility for administration, owners, and supervisors alike. So once the Night Audit Report is updated it is passed to the right personnel to manage things in their next shift respectively. Although Night Auditing is generally part of the Front Office department in the Hotel or any other large organization, a professional allotted to work for night audit procedure must have the right skills and experience to add his opinions in building these comprehensive reports.

Night Auditing Reports are highly important in managing Hotel activities. Everyday revenue collection allows the administration and Owners to take precise decisions in improving the efficiency of their business.

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