Just how much can good finance software impact a hospitality

Just how much can good finance software impact a hospitality firm’s bottom line?

For some finance leaders, accountancy and other finance software packages are essential to the smooth flow of both strategic and day-to-day operations. But for others, there is often little to no understanding of just how helpful it can be. Not only can a good software package save time and prevent frustration, it can have direct and tangible impacts on your company’s bottom line too. Here’s how this can be done.

Revenue and cash flow

In the hospitality business, there are an awful lot of raw materials which need to be bought well in advance. This stands in contrast to some other types of firms. Many office-based service businesses, for example, find that their main cost is staff, and given that staff are usually paid in arrears there’s some more flexibility. It’s not quite the same in the hospitality world! If the linen isn’t bought for the hotel or the food isn’t ordered to the restaurant, for example, the business can’t function. Having access to a real-time monitoring system which tracks cash flow data is vital here, as it means that hospitality finance leaders can tap into cash reserves for operational cost covering purposes if needed.

Posted 07/03/2019

It’s also important to make sure that cash comes in from those customers who have promised it, too. In the hospitality business, it’s quite common for customers to leave deposits in advance of a particular payment deadline or event. Whether it’s for a large restaurant booking or it’s for a major conference, failing to properly track this sort of money owed could lead to loss through human error. By relying on a sophisticated finance product instead, you’ll be able to reduce this sort of revenue loss.

Time is money

The old adage “time is money” is just as true for finance leaders as it is for anyone else. And one of the main advantages of an accountancy software package is that it can save time for staff who, in an increasingly busy world and a tough sector, don’t have much time left over in their days. Say you operate a hotel, and your reception team spends several hours a day manually going through customer email chains to locate invoices. By having a finance software package which automates this and categorises invoices in an intuitive way, your reception staff can spend that time on more profitable activities – such as maintaining a marketing campaign for the hotel or going the extra mile to create better customer experiences and create recurring custom.

So while some leaders may disregard the importance of finance software, it’s often the case that they’re missing a trick. Finance software can actually be a great way to boost your profit margins. From freeing up staff members to focus on more profitable activities to tackling those difficult revenue loss situations, good finance software can really make a change.

Learn more about how The Access Group’s finance software can revolutionise your profit potential.