In the increasingly volatile and regulation-filled business world, the ability to adapt is of utmost importance; hotels as well are facing challenges in handling change and complexity, especially when they try to step out of the domestic environment and into the global zone.

During the transition, many hotels might find themselves trying to avoid incurring costs and disruptions by sticking with their existing accounting software.

Nonetheless, if businesses do not conduct comprehensive evaluation of their needs and software capabilities, they may well end up paying more than they could save.

Why? Because the finance department is caught up in unproductive hours continuously checking for and correcting errors whilst they should be providing accurate, timely financial reports and analysis.

What should hotels look for in their financial management system then?

Handling currency complexity
Rapid globalisation means that hotels are likely to report in more than one currency. Thus it would be a tremendous help if hotel accounting software can handle multiple currencies. However, it is worth noting that currency translation is not as simple as it looks. Complexity arises when different categories of exchange rates are required depending on circumstances. This is especially problematic when hotels have to follow more than one set of accounting and business rules.

Handling multiple languages
Even though English is the default business language globally, it is not necessarily the case that everyone in an organisation grasps all English terminology and statutory reports, especially those that handle day-to-day operations. They are more likely to do the work in their own language. Moreover, different countries have different units of measurements and formats, which need to be reported as well. Hence, it is vital that hotels' financial management software can handle all of these.

Handling multiple entities
A hotel chain with various branches in different countries or jurisdictions has the extra workload that entails complexity. As a helping tool, a hotel financial management system should be capable of consolidating results from discrete entities for statutory reporting and tax purposes. In other words, it should help the mother company and its subsidiaries keeping track of one another's financials without interfering with their various legal structures.

Supporting multiple charts of accounts
According to Ventana Research 2011, "maintaining multiple charts of accounts may prove to be both simpler in the long run and more productive" despite some saying that it is best to have one chart of accounts only. The rigid approach of a single chart of accounts is especially unsuitable for companies with different lines of businesses, those in joint-venture arrangements or those acquiring businesses in different countries. Thus, accounting software for hotels should be able to handle simultaneous charts of accounts.

Handling multiple calendars
It is a fact that businesses around the world do not operate on the same fiscal year. To save time from having to recast figures into different calendars, hotels with multinational operations should implement a financial management system that can create local, regional and consolidated reports as needed for management or statutory purposes.

Handling tax complexities
For hotels operating in various countries, their accounting software should be able to handle the complexities associated with different tax regulations and help defending tax audits. Apart from addressing issues such as multiple entities, charts of accounts, calendars and depreciation schedules, their system should be configured to be tax-aware. In other words, it should provide hotels with automated maintenance of rules and rates.

Reporting using multiple accounting standards
GAAP, IFRS and local accounting standards require different accounting treatments. Thus, accounting software for hotels should allow different books for recording transactions under these various accounting rules. Automating the process from closing these books to creating financial statements and reports using multiple accounting standards also helps hotels save time and effort without risks of errors.

Supporting different levels of corporate reporting
A multinational hotel's accounting system should be able to create a consolidated headquarters view as well a consolidated statement of several subsidiaries at an intermediate level. Management should be able to view and analyse these reports right at the source.

Supporting global access
Financial management software that allows web-based access can help hotels avoid incurring costs from installing the system individually at all branches or at branches with limited on-premise support. Having a system that can be installed locally, deployed centrally and accessed globally gives hotels a competitive advantage without compromising security and reliability.

Infor10 Financials Business (SunSystems) for Hotels, implemented by TRG International, with its 9 Global Essential features help hotels around the world adapt to change and grow in any market.

9 Global Essentials Screenshot:



TRG International – a Gold Channel Partner of Infor – is an independent provider of IT business solutions and supports thousands of users in 70 countries. The company has 17 years of experience in deploying SunSystems and has helped hotel chains such as Hilton achieve excellent results.

For more information:

http://blog.trginternational.com/br-sunsystems-for-hotels-e