Hospitality technology trends affecting hotel accounting
To date, most digital innovation in hospitality businesses, including hotels, pubs and clubs, has come in consumer-facing functions – customer service, administration, and travel. In an Oracle Hospitality survey, 64% of hotel guests said it was extremely important or very important for hotels to continue investing in new hotel technology to enhance their experience.
But now, hospitality business accounting and finance functions are beginning to embrace new technology to improve efficiency and business performance. In this article we look at some of these new trends in hospitality technology. Artificial intelligence (AI), apps, automated invoicing and data collection, and analytics are transforming accounting processes for hotels, pubs and clubs.
Artificial intelligence or AI in hospitality accounting
Artificial intelligence (AI), including Generative AI, has rapidly become more prominent and of benefit to businesses. Generative AI platforms such as ChatGPT are one example of new trends in hospitality technology.
Our July 2023 Business Radar Report looks at the risk, rewards and challenges of using GenAI in business. You can read more about the Report and how it applies to the hospitality sector in this article.
The Report shows that while many businesses are aware of GenAI they are limiting their thinking about existing and potential uses to customer service, content creation and administration. Only 20% of survey respondents thought of Gen AI being useful for bookkeeping and accounting – the lowest of listed uses.
But AI can use current and historical data and market trends to help drive faster and better financial decision making. It can also identify patterns and anomalies that can be missed by human analysis. By doing some of the manual and transactional accounting tasks, hospitality finance professionals and their business advisers can focus on higher-value activities, such as strategic analysis and business planning.
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Apps – mobile, tablet and computer
The mobile revolution has completely altered the way hotel and hospitality patrons interact with a business.
For example, many customers now book a night’s stay in a hotel on their phone. From researching locations to comparing prices to paying for the booking, there is an app to cover every need.
The same can now be said for hotels’ key back-of-house functions such as accounting or bookkeeping. Mobile applications allow accounting personnel to access a business’ data remotely at any time.
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Automated invoicing and data extraction
Producing and processing invoices is a time-intensive task where hospitality technology can help hotels, pubs and clubs.
Invoicing software can import entire invoices and datasets from multiple hospitality properties onto the same platform. This offers accounting professionals seamless, on-demand access to all the information they need to help hospitality businesses determine the best accounting strategy.
Additionally, hospitality technology can help automate time-consuming tasks of extracting raw information and data management so professionals can focus on data analysis. For example, Optical Character Recognition (OCR) converts images of typed, handwritten or printed text to machine-coded words. This allows users to interact more easily with data and speed up accounts payable workflows.
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Analytics – doing more with data
Good data is critical to modern businesses. Using surveys or reviews on search engines, hospitality managers can draw direct insight from guests to determine what changes need to be made to improve the customer experience.
Big data also has a valuable role to play in accounting and taxation functions. Consider the potential of being able to assess how your hospitality business is meeting KPIs with a far larger dataset spanning multiple sites or businesses. Your business accountant and advisers can spend less time obtaining accurate information and more time offering value-added insights on relevant accounting strategies.
Further to this, data helps to assess your hotel, pub or clubs’ performance versus industry benchmarks. Your can track how your business is performing in the market and identify opportunities for improvements.
Accessing and collating a central data pool also helps with risk identification and management. Prevention is better than cure. Reducing the chances of accounting mistakes saves valuable time and resources.
On the tax front, data analytics helps tax professionals evaluate efficiencies more easily and identify tax-related opportunities for financial streamlining or improvement. Peace of mind that you are paying the right amount of tax is more achievable than ever, thanks to the advent of digital analytics technology.
Want to learn more compelling insights about the world of hotel accounting?
Pitcher Partners Newcastle and Hunter boast a diverse team of accountants and tax professionals specialising in the hospitality industry. We can effectively manage your tax and accounting strategies to keep your business on track and drive long-term growth, utilising the latest hospitality trends and technologies.
Just contact us today for a free, no obligation, discussion.
