The Importance of Night Auditing In The

Front Office Operations

INTRODUCTION
Front Office:
The Front Office Department comprise of the Reception, Guest Service
Offices, e!! Services, Reservation, Operators, "#ecutive C!u$, %ea!th and
Recreation Center and usiness Center& The purpose of the Front Office
Department is to provide guests assistance 'ith !uggage, transportation,
information concerning the hote! and the cit(, and an( other service
arrangements needed during their sta(&
"mp!o(ees of the Front Office Department often provide the first and !ast
impression of the hote! to our guests& It is therefore vita!!( important that
emp!o(ees disp!a( a prompt and courteous attitude to a!! guests and
demonstrate the e#ce!!ence in service&
The Front Office )anager 'ho comes under the direct supervision of the
Director of Rooms and supervises the Front Office Department&
Important of Front Office Department to the Hotel
%ospita!it(, 'arm 'e!come
Often provide first and !ast impression&
Often have !ongest contact 'ith guest&
Continuit(* +ong term service, recognition of repeat guests, remem$er
names, guest histories
Ac,uaint guest 'ith hote!&
Se!! hote! food and $everage out!ets&
Up se!!* Suggest de!u#e and suites&
Smoother over disgrunt!ed guests&


What is Night Audit?
The hote!-s financia! management starts in the front office& This
responsi$i!it( is shared 'ith the contro!!er-s office. it $egins 'ith the
accurate and time!( processing of guest accounts& This can $e a time/
consuming process for the night auditor. it provides a $a!ance of de$it and
credit entries to guest and departmenta! accounts, 'hich inc!udes income
and e#pense/generating areas of the hote!s, !i0e restaurants, $an,uets&
Night auditor is a!so 0no'n as the in house auditor 'ho is responsi$!e for
conducting audit and generating reports for management& In a five star hote!,
night audit is ver( comp!icated and it re,uires $asic accounting, computer
and hote! management 0no'!edge and $ac0ground.
Night Audit 1NA2 is $asica!!( composed of fo!!o'ing important 3o$s !i0e
sett!ing credit cards for the da( 'ith $an0 to ensure mone( transfer from the
guest4s account to the hote! account& After that, charging Room Ta# from a!!
the guests automatica!!( to ma0e sure that a!! sta(ing guests are $een
charged to their agreed rates against the room rent& Arranging reports for
management to ref!ect that da(4s $usiness activities !i0e revenue earned and
e#penses done&
Night Auditor a!so ensures that a!! phone ca!!s and guests coming to front
des0 for different matters are proper!( addressed and ta0en care of proper!(&
In short its one of the most responsi$!e position in hote! management
considering its responsi$i!ities&
The night audit in the hote!, mote! and $ed and $rea0fast industr( is a ver(
important part of the smooth running of a hote! or mote!& In fact, ne#t to the
provision of e#ce!!ent customer re!ations this is the most important aspect of
the $usiness side of the hote!, mote! and $ed and $rea0fast industr(& Ta#es is
the reason for this, the night audit is the determining factor for the amount of
ta#es o'ed $( the hospita!it( faci!it( on ta# da( each (ear&
Under the heading Ta#pa(er Record of the faci!it( are !isted the Registration
card, Room revenue $a!ance sheet, Dai!( contro! report, %ouse0eeper4s
report, Cit( !edger, )onth!( Summar(, Ta# report room revenue sheet, and if
the hote! is residentia! hote! then a Residentia! record sheet is a!so needed&
The dai!( and month!( report and the room sa!e, dai!( and month!(
accounting sheet must each $a!ance 'ith the dai!( and month!( ta# sheet&
Night audit fo!!o' the prescri$e designed routines*
5 to update the c!ient fo!io,
5 6erform account c!osing for the da(,
5 6repare and distri$ute dai!( $i!! to the c!ient&
5 6repare and distri$ute a range of report& One of such report to management
is perpetua! inventor( of account receiva$!e, that te!!, ho' man( receiva$!e
'here o'ed at the $eginning of the da(, ho' man( 'ere paid and ho' man(
'ere charges during the da( and at the !ast the c!osing $a!ance of the da(&
At the end of the (ear a!! of the summaries must $a!ance 'ith the annua! ta#
sheet and this is the amount of ta#es o'ed to IRS for the hote!, mote! or
$read and $rea0fast faci!it(& If, there is a!so a restaurant or other sa!es
departments 'ithin the main faci!it( this a!so must $e recorded and reports
prepared dai!(, month!( and annua!!(&

Importance Of Night Audit in a Hotel:
The Night Audit is the contro! process 'here$( the financia! activit( of
guest-s accounts is maintain and $a!anced& The process trac0s charges and
pa(ments and the departmenta! receipts and charges on a dai!( $asis& This
'or0ing definition encompasses not on!( the mechanica! proofing of tota!s
of charges and pa(ments $ut the further revie' of account activit( $(
management& The front office manager monitors the credit activit( of guests,
pro3ects dai!( cash f!o' from room sa!es, and monitors pro3ected and actua!
sa!es for the various department&
+earning the process of the night audit can provide va!ua$!e information for
someone 'ho p!ans to continue in the hote! industr(& It a!so gives the
necessar( o$3ective overvie' to eva!uate the hote!-s financia! activit(& As the
night audit a!!o's a revie' of a!! the financia! activit( that ta0es p!aces in a
hote! in one da(& ased on that revie's the genera! manager must determine
ho' the night audit shou!d $e adapted to meet the e#penses and profit goa!s
for the accounting period& The night audit provides insight into ho' each
department must $e monitored to produce an accepta$!e income statement& It
pu!!s together the p!ans and operations of a hote! on a dai!( $asis, not 3ust at
the end of an accounting period& U!timate!(, the night audit a!!o's genera!
managers to ma0e good financia! decisions $ased on current and cumu!ative
data&


Why I Selected This Topic:
The night auditor has man( responsi$i!ities in addition to preparing the night
audit report& This person a!so must chec0 in and chec0 out guests 'ho arrive
or depart after 77*88 6&)&, process reservations, perform the duties of
securit( guard, monitor fire safet( s(stem, act as cashier for $an,uet
functions, and perform the 'or0 of manager on dut(& The night auditor acts
as a communication !in0 $et'een the guest and hote! operations during the
77*88 6&)& to 9*88 A&)& shift&
The night audit is not one of those reports that is put on the she!f and
forgotten& )anagement uses it to verif( the integrit( of the guest accounts
and to revie' operationa! effectiveness, 'hich is the a$i!it( of a manager to
contro! costs and meet profit goa!s&
There are five $asic steps invo!ved in preparing a night audit*
6osting room and ta# charges
Reconci!ing departmenta! financia! activities
Reconci!ing the accounts receiva$!e
Running the tria! $a!ance
6reparing the night audit report&
+earning the mechanica! or hand method of doing the night audit, ho'ever,
'i!! assist the front office manager in understanding the intricacies of
fo!!o'ing a paper trai! of guest and departmenta! transaction& The modern
method of performing the night audit on a 6)S 'i!! $e used, $ut one shou!d
a!so $e fami!iar 'ith the components up c!ose and persona!&
osting !oom and Ta" #harges:
After the night auditor has revie'ed an( messages from other front
of:ce staff, revie'ed guests 'ho chec0ed out of the hote!, e#tended
an( guest sta(s, revie'ed a!! room rates, and printed a variance
report, his or her :rst tas0 is to post room and ta# charges to a!!
accounts& The 6)S can easi!( post room and ta# charges to the
e!ectronic fo!ios, 'ith the room and ta# options& Assem$!ing Guest
Charges and 6a(ments The various modu!es in a 6)S 1food and
$everage, ca!! accounting, gift shop, etc&2 a!!o' for ease in
assem$!ing guest charges and pa(ments& The fo!!o'ing is a t(pica!
!ist of point/of/sa!e departments for 'hich income 'i!! $e reported*
5 Restaurant 7 1$rea0fast2
5 Restaurant ; 1!unch2
5 Restaurant < 1dinner2
5 Room service 7 1$rea0fast2
5 Room service ; 1!unch2
5 Room service < 1dinner2
5 +ounge 7 1!unch2
5 +ounge ; 1happ( hour2
5 +ounge < 1dinner2
5 +ounge = 1entertainment2
5 >a!et
5 Te!ephone
5 Gift shop
5 Spa and poo!
5 6ar0ing
5 )isce!!aneous
Note ho' the restaurant, room service, and !ounge paper'or0 is
further c!assi:ed $( mea! or function, to faci!itate record0eeping&
Genera! )anagers can revie' the income/generation activit( of each
of these departments 'hen the( are reported separate!(& The guest
charges option of the night audit modu!e in a propert( management
s(stem can sort and tota! a!! departmenta! charges and pa(ments that
have $een posted to the e!ectronic fo!ios from the point/of/sa!e
s(stems that interface 'ith the 6)S& These data are accurate as !ong
as the person entering the charges at the point/of/sa!e termina! 0e(s
them in accurate!(&
!econciling Departmental Financial Acti$ities:
The departmenta! tota!s option of the night audit modu!e in the 6)S
'i!! report the tota!s of sa!es $( department, as sho'n in Figure 78/;&
These tota!s are compared to posting information received from the
point/of/sa!e s(stem& Another departmenta! tota! that must $e veri:ed
is the cash tendered $( guests at the front office& %ote!s var( in their
cash/processing po!icies& Some front offices process restaurant guest
chec0s from cash customers or other departments in the hote!,
$ecause management 'ants to centra!i?e the cash transactions& In
other hote!s, this po!ic( 'ou!d $e a great inconvenience $ecause of
the distance of the various restaurants, !ounges, and gift shops from
the front office& It a!so re,uires additiona! personne! in the various
departments to carr( the guest chec0s 'ith the cash or credit cards to
the front office& The cashier option of the night audit modu!e in the
6)S 'i!! report the amount of cash, credit cards, and coupons
received and discounts processed during the shift, the tota! amount of
cash received $( each cashier 'ho has $een issued a cash dra'er
must $e veri:ed against the tota! mone( deposited for that shift&
!econciling Accounts !ecei$a%le:
The cit( !edger is an accounts receiva$!e he!d at the front office&
The cit( !edger is a co!!ection of guest accounts of persons 'ho are
not registered 'ith the hote!& The( have either received approva! for
direct/$i!!ing privi!eges or paid a deposit on a future $an,uet,
meeting, or reception& The night auditor 'i!! treat these accounts 3ust
!i0e the accounts on the guest !edger for registered guests& %e or she
must assem$!e the charges and verif( their accurac(& The cash
received from these accounts is re@ected in the cashier-s report& The
:gures in a cit( !edger can $e ,uite !arge& A hote! that promotes direct
$i!!ing as a customer service ma( have outstanding guest de$it
charges of A78,888 to AB8,888& The hote! ma( ho!d a credit $a!ance,
amounts of mone( a hote! o'es guests in future services, of A;B,888
to A7B8,888 or more from deposits on future receptions and meeting
room renta!s& The contro!!er of the hote! must c!ose!( 'atch the
$a!ances of these accounts to ensure effective cash @o' management&
The master credit card accountCan account receiva$!e that trac0s
$an0, commercia!, private !a$e!, and interse!! credit cards such as
>isa, )asterCard, and DCCis he!d at the front office& Depending on
the si?e of the hote!, the services offered to the guest and the speed of
reim$ursement from the credit/card agenc(, this :gure ma( a!so $e
,uite !arge& It is not uncommon for a medium/si?e hote! to have an
outstanding credit $a!ance of A<8,888 to AB8,888 at an( one time& As
chec0s are received from the credit/card agenc(, this :gure is
reduced& It 'i!! rise again 'hen ne' charges are posted to a guest-s
fo!io& Ehen the chec0s from the credit/card agenc( are received, the(
are posted to the respective credit card-s account receiva$!e, and a
current $a!ance is ca!cu!ated& The cit( !edger and accounts receiva$!e
options of the night audit modu!e of a 6)S 'i!! produce a report of
the activit( on the cit( !edger and master credit/card accounts.
!unning the Trial &alance:
A tria! $a!ance is a :rst run on a set of de$its to determine their
accurac( against a corresponding set of credits& The tria! $a!ance
he!ps the night auditor focus on accounts in 'hich charges ma( have
$een posted or reported incorrect!(& For that reason, it is important
that the night auditor compare the departmenta! tota!s against an(
transfers and paid/out s!ips for each department processed $( des0
c!er0s and cashiers&
'oal of reparing the Night Audit !eport:
Students stud(ing hote! front office management ma( as0, FEh( shou!d
the night audit report $e preparedGH It offers a massive amount of dai!(
operationa! :nancia! feed$ac0 that provides an immediate opportunit(
for managers to react and respond& The night audit report is 0e( in
ma#imi?ing the efficienc( of a hote!& The dai!( :gures regarding room
occupanc(, (ie!d percentage, average dai!( rate, and revenue per
avai!a$!e room 1Rev6AR2 provide managers 'ith dai!( opportunities to
improve a s!o' sa!es period& Guests 'ho demand an accurate fo!io
comp!ete 'ith guest charges can $e he!ped more efficient!( as a resu!t of
this process& As (ou $egin (our career in the hote! industr(, ta0e the
opportunit( to revie' the :nancia! statistics generated $( the night audit
report& It 'i!! provide a capsu!e revie' of the importance of
departmenta! :nancia! activities and their ro!e in de!ivering hospita!it(&
This $ac0ground 'i!! a!so provide (ou 'ith insight into the decision/
ma0ing process, 'hich, in turn, he!ps various departments, adhere to
their $udgets&
(o% Description of the Night Auditor:
Job Title: Night auditor of a B star hote!
Reports To: The Front Office )anager, Finance Contro!!er and the
Genera! )anager
Co-ordinates with: The Front Office staff of night shifts, inc!uding the
Cashier, Dut( )anager and if necessar( other "#ecutives 'hen the(
are avai!a$!e&
Duty Timings: Reports at 78 6&)& $ut 'or0 starts at 7; A&)& 1date
changes/grave(ard shift2&
Job Summary: Night Auditor is overa!! in charge of compe!!ing the
Front Office guest accounts and conso!idating the same to the dai!( sa!es
statement, the D report and the guest !edger transcript a!so 0no'n
recapitu!ation sheet or recap sheet&
Duties and !esponsi%ilities *
7& The Night Auditor shou!d chec0 the 6)S and c!ose a!! the guest fo!io
at 7; midnight and simu!taneous!( open ne' account for the ne#t
data&
;& Individua!!( each guest fo!io is e#amined to see a!! the guest charges
are posted and this is ta!!ied 'ith the supporting voucher present&
<& Chec0s up the $i!!ing instruction of a!! the $i!! regarding discounts,
specia! rates, creditors, trave! agenc( voucher and ma0es sure a!! the
$i!!ing instruction are fo!!o'ed correct!(&
=& %e shou!d chec0 ph(sica!!( the cash $o# and its content& The amount
of cash co!!ected shou!d ta!!( 'ith the guest fo!io pa(ments
B& The Night Auditor pa(s specia! attention to foreign currenc( pa(ments
ensuring these have $een charged at correct officia!s rates and the
encashment certificate have $een made and issued vio!ation 'i!!
amount to F")A vio!ation&
I& The Night Auditor shou!d compi!e the D report 1tria! $a!ance2 and
ensure the tota! of the entire de$it e,ua! the tota! a!! the credits& For
an( service de!ivered 'ith the de$it for 'hich pa(ment is not received
at the moments, the same is referred to cit( !edger 1amount due2
9& The Night Auditor shou!d ensure ?eroing the accounts for each and
ever( guest fo!io $( e#amining ph(sica!!( a!! the fo!io&
rere)uisites:
Qualification: A hote! graduate or in some cases a norma! graduate
'ith fe' (ears of front office e#perience&
Eperience : At !east one (ear of front office supervisor e#perience,
'here he can understand entire front office operations
!ersonal "bility: shou!d $e strong and energetic to 'ith stand the
strain of night dut(, shou!d $e 'e!! versed in a!! front office s0i!!s, as
communication, guest accounting, guest comp!ains, managing other
staffs&
reparing the Night Audit !eport:
The Night Audit report is usua!!( organi?ed to meet the needs of a specific
!odging esta$!ishment& Some Genera! )anager might re,uire more financia!
data than others& The $udget is the target amount of sa!es p!anned for that
da(& The goa! sho's 'hat percentage of the $udgeted figures 'as actua!!(
achieved& Some hote! managers 'ant a cumu!ative figure reported each da(,
to gain more comprehensive overvie' of achievement of financia! goa!s&
It is important that manager approach this report as a functiona! too! that
provides dai!( operationa! financia! data& Its ma3or components ma( seem
over'he!ming 'hen perceived as a 'ho!e& Dai!( revie' of the reported
figures a!!o's management the opportunities to $e f!e#i$!e in meeting
financia! goa!s&
Different Departmental Totals:
"ach department in the hote! is re,uired to provide a dai!( sa!es report to the
front office& These figures are !isted and compared to the $udget goa!&
Genera! )anagers of hote!s use these figures to determine the profita$i!it(
of income Jgenerating departments and the success of mar0eting programs&
&an* Deposit:
an0 deposits are a!so part of the night audit& In !arge hote!s, $an0
deposits are made severa! times a da( to satisf( securit( concerns& The
$an0 deposit inc!udes $oth cash and credit/card deposits& It is
important to note that cash, $usiness chec0s, and chec0s from credit/
card companies are received severa! times throughout the $usiness
da(& After these credit/card companies are received severa! times
throughout the $usiness da(& After these to the corresponding guest or
cit( !edger account&
Accounts !ecei$a%le:
The accounts receiva$!e is an ongoing !isting of outstanding amounts
o'ed to the
hote!& As mentioned in Chapter K, these potentia! sources of revenue
are essentia! to providing positive cash @o'& )anaging and updating
these accounts, $( revie'ing them dai!(, is a primar( responsi$i!it( of
the contro!!er and genera! manager&
#ashier+s !eport:
In some hote!s, the front des0 c!er0 or cashier is responsi$!e for
proo:ng and co!!ecting the various departmenta! dai!( reports& In
those situations, the cash and credit/card
vouchers are added into the individua! cashier-s shift report& A!so
inc!uded in that report are the amounts of cash and credit/card chec0s
received for app!ication to accounts receiva$!e& "ach cashier-s shift
report is veri:ed $( departmenta! dai!( reports, cash and credit/card
vouchers, and accounts receiva$!e cash and credit/card chec0
transactions& These :gures must $e veri:ed in the dai!( $an0 deposit&
The cashier-s report 'i!! a!so note an( variances in actua! tota!s and
6)S tota!s& Usua!!(, the hote! 'i!! set a po!ic( regarding the front
des0 c!er0 or cashier-s !ia$i!it( for these variances& For e#amp!e, if the
actua! amount co!!ected is one cent to one do!!ar !ess than the amount
o$tained in the cashier-s report, the front des0 c!er0 or cashier is not
!ia$!e for the difference& Amounts signi:cant!( !arger than one do!!ar
'i!! $e investigated to see if such !osses are regu!ar occurrences&
Ehen the actua! amount co!!ected is more than the amount o$tained in
the cashier-s report, the e#tra mone( 'i!! $e maintained in a house
fund to compensate for under co!!ections& These amounts shou!d a!so
$e investigated as to regu!arit( and source& Su$stantia! overages and
shortages must $e investigated for proper de$iting and crediting of a
guest-s account&
,anager+s !eport:
The manager-s report is a !isting of occupanc( statistics from the
previous da(, such as occupanc( percentage, (ie!d percentage,
average dai!( rate, Rev 6AR, and num$er of guests& Data such as
these are necessar( for monitoring the operation of a :nancia!!(
via$!e $usiness& The genera! manager, contro!!er, front office
manager, and director of mar0eting and sa!es 'i!! revie' these
statistics on a dai!( $asis&
!oom Ser$ice:
Some hote!s report room service sa!es as a separate :gure from tota!
restaurant sa!es& If a hote! has organi?ed a specia! mar0eting and
merchandising campaign to increase room service sa!es or fee!s that
carefu! monitoring of this potentia!!( pro:ta$!e service is necessar(,
then the night auditor 'i!! report this :gure& Room service 7 ma(
represent $rea0fast sa!es on!(. ;, !unch sa!es. and <, dinner sa!es&
&an)uet Sales:
%ote!s 'ith !arge $an,uet operations 'i!! report the $an,uet sa!es
:gure separate!( from restaurant sa!es& These :gures are a tota! of
the guest chec0s, 'hich ta!!( the individua! $an,uet charges& The
night auditor 'i!! a!so chec0 the dai!( function sheet to ensure that
a!! schedu!ed functions have $een $i!!ed& The genera! manager can
use $an,uet sa!es :gures to determine ho' effective the food and
$everage manager is in contro!!ing re!ated e#penses for this
division& The( a!so indicate ho' effective the director of mar0eting
and sa!es is in generating $usiness& an,uet $rea0fast, $an,uet
!unch, and $an,uet dinner :gures are reported separate!( $ecause
the( provide mar0eting information on 'hich areas are successfu!
and 'hich cou!d $e more successfu!& The $an,uet sa!es :gures 1and
the room sa!es :gure2 a!so provide information on the cash @o'
activit( of the hote!& If the hote! has schedu!ed A;B,888 of $an,uet
$usiness and A;B,888 of rooms $usiness for a 'ee0end, it can meet
various :nancia! o$!igations due on )onda(, depending on method
of pa(ment& The contro!!er in a hote! 'i!! therefore 'atch room and
$an,uet sa!es ver( c!ose!(&
&an)uet &ar and Total -ounge Sales:
The sa!es :gures for the $an,uet $ar and !ounge areas originate
from the point/of/sa!e cash registers& The tota! sa!es :gures from
the various out!ets that serve a!coho!ic $everages are reported to the
front office on a dai!( sa!es report after each shift& "ach report is
accompanied $( the cash register tapes or audit tapes& These sa!es
:gures from the various !ounges and $an,uets are reported
separate!( $ecause the food and $everage manager 'i!! 'ant to
determine ho' 'e!! cost/contro! efforts have $een maintained for
that department and the director of mar0eting and sa!es ma( 'ant to
0no' ho' successfu! certain mar0eting and merchandising
campaigns have $een&


!oom !ental:
The charges for room renta!Cthese are not guest rooms $ut meeting
and function
roomsCare reported on specia! room renta! guest chec0s& The night
auditor 'i!! cross/ chec0s these guest chec0s against the dai!(
function sheet to $e sure the $an,uet manager has charged room
renta!s to the appropriate guests& This :gure is reported separate!(
at those hote!s that charge fees for the renta! of
faci!ities 'hen no food or $everage is ordered& For e#amp!e,
$an,uet rooms ma( $e rented for seminars, meetings,
demonstrations, and sho's& Since room renta! represents a
potentia!!( !arge pro:t area 1especia!!( during s!o' $an,uet sa!es
periods2, genera! managers 'i!! 'ant to 0no' ho' effective the
mar0eting and sa!es department has $een in ma#imi?ing this pro:t
center.
.alet:
One of the services a hote! offers is dr( c!eaning and !aundr(& This
feature must $e c!ose!( monitored $ecause the hote! pa(s cash to
the off/premises dr( c!eaner or !aundr( service 'hen the c!othing is
returned& These costs, p!us a mar0up for hote! hand!ing charges, are
posted to the guests- fo!ios& Some hote!s maintain a va!et or dr(
c!eaningL !aundr( 3ourna! indicating va!et tags, contro! num$ers,
processing dates, vendor charges, hand!ing charges, posting activit(,
dai!( tota!s, and the !i0e& Transfer s!ips are prepared to indicate the
charges for va!et service& The charges on these transfer s!ips are
then posted to the guests- fo!ios& The tota! of the transfer s!ips
comprises the va!et tota! for the night audit&
Telephone #harges:
After the te!ephone industr( 'as deregu!ated in the ear!( 7MK8s, ca!!
accounting $ecame a standard practice in hote!s& This a!!o'ed hote!s
to set individua! surcharge rates, rates for adding service charges for
out/of/state !ong/distance te!ephone service& The te!ephone
department $ecame a ver( pro:ta$!e area in the hote! $usiness& Since
a!! phone ca!!s are charged to the guest fo!io, an accurate accounting
of the charges is necessar(& In a hote! 'ith a ca!!/accounting s(stem
that interfaces 'ith a propert( management s(stem, this ta!!( is
e!ectronica!!( o$tained&
'ift Shop Sales and Ta":
The gift shop in a hote! prepares a dai!( sa!es report for the front
office& Cash register tapes or point/of/sa!e audit tapes 'i!!
accompan( the report& The genera! manager 'i!! 'ant to e#amine
the :nancia! activit( of this pro:t center& This is another area in
'hich cash @o' potentia! is monitored& Recording the ta# co!!ected
on gift shop sa!es and reporting this :gure is a necessar( accounting
procedure&

.ending:
%ote!s that maintain their o'n vending machines 'i!! monitor the
dai!( co!!ection of cash& If a faci!it( has a !arge num$er of vending
machines, the food and $everage manager assigns one person to
co!!ect and count the mone( and prepare a dai!( sa!es report& These
reports provide the tota! sa!es :gure for vending&
Spa:
The use of hea!th faci!ities at a hote! ma( $e provided free to guests&
%o'ever, other products and servicesCsuch as s'imsuits, hea!th/
re!ated products and e,uipment, the services of a masseur or
masseuse, sports !essons, and renta! of e,uipmentCare so!d to the
guest& These costs 'i!! usua!!( $e charged to the guest fo!io& A dai!(
sa!es report 'i!! $e prepared at each of the hea!thLrecreation
faci!ities& Some hote!s offer their hea!thL recreation faci!ities for a fee
to the genera! pu$!ic& Transfer s!ips for charges to the guest accounts
for future $i!!ing in the cit( !edger provide a tota! against 'hich tota!
spa charges are veri:ed
ar*ing:
A hote! that offers va!et par0ing or par0ing spaces to guests and the
genera! pu$!ic
'i!! ac,uire !arge amounts of cash during a $usiness da(& Cash,
$usiness chec0s, and de$it/ and credit/card pa(ments are co!!ected
throughout the da( for genera! par0ing, !ong/term $usiness par0ing,
and par0ing va!et services& Guests in the hote! 'ho are charged for
par0ing services 'i!! have this amount charged to their accounts& The
par0ing garage manager 'i!! prepare a dai!( report of the cash and
charge activities for each shift of the da(& Supporting documentation,
inc!uding par0ing tic0ets, cash register tapes, transfer s!ips, and
month!( par0ing permit rene'a!s, accompan( the dai!( report& The
night auditor 'i!! prepare a summar( tota! of this account from these
reports&
#ash Sales and Accounts !ecei$a%le &alance:
The tota! revenue represents $oth cash and charge guest sa!es& A
separate :gure is reported for tota! cash sa!es for the da(& This :gure
represents the tota!s reported and received from the various
departmenta! dai!( reports and is a!so re,uired to 3ustif( the dai!(
$an0 d Charge sa!es are re@ected in the outstanding accounts
receiva$!e& This is the amount that remains to $e received from the
guests& Tota! paid/outs, tota! discounts, and tota! 'rite/offs have $een
su$tracted from that :gure& Toda(-s outstanding accounts receiva$!e
:gure is added to (esterda(-s outstanding accounts receiva$!e to
o$tain a cumu!ative $a!ance of outstanding accounts receiva$!e&
#redit #ards and #ash Applied to Accounts !ecei$a%le:
Throughout the $usiness da(, the contro!!er of the hote! 'i!! re,uest
front des0 c!er0s or cashiers to post $usiness chec0s and cash received
from credit/card companies, direct/ $i!!ing accounts, and cit( !edger
accounts& The charges from these groups 'ere previous!( moved to
accounts receiva$!e& These chec0s and cash pa(ments represent
charges from previous!( he!d $an,uets, guest room renta!s, and the
!i0e& The genera! manager of the hote! 'atches this :gure to determine
cash @o' activit(& Again, the outstanding $a!ance of accounts
receiva$!e is updated&
Analysis of Accounts !ecei$a%le:
The front office manager maintains an ana!(sis of the accounts
receiva$!e $a!ance& It 'i!! indicate the source of the account
receiva$!eCcit( !edger, direct $i!!ing, or various credit cards& 1It is
important to note here that cit( !edger accounts ma( have a credit
$a!ance $ut are maintained as an account receiva$!e& For e#amp!e, if a
guest pa(s a AB88 deposit on a future $an,uet, a credit $a!ance 'i!! $e
maintained on the account& Ehen this credit $a!ance is computed 'ith
other de$it $a!ances, a de$it $a!ance is rea!i?ed&2 The contro!!er 'i!!
use this information to trac0 the aging of accounts, determining the
stage of the pa(ment c(c!eCsuch as 78 da(s o!d, <8 da(s overdue, I8
da(s overdueC and to operate an overdue pa(ment co!!ection
program&
&an* Deposit and Amount Transferred to Accounts !ecei$a%le:
The cash, credit/card vouchers, and charges received during the
$usiness da( from cash, charge, and accounts receiva$!e transactions
must $e deposited in the hote!-s $an0 accounts or transferred to the
hote!-s interna! accounts receiva$!e& The night auditor 'i!! provide a
summar( of the components of the $an0 deposit& an0 deposits are
made throughout the $usiness da(& Those individua! tota!s ma0e up
the tota! $an0 deposit 1TT+ ANN D"62& Credit/card tota!s are
!isted here $ecause, in some circumstances, the credit/ card voucher
is considered cash at the time of deposit& The cash and various
credit/card tota!s that have $een deposited must match the tota! cash
sa!es p!us the cash received and app!ied to outstanding accounts
receiva$!e 1Cash Rec-d ALR2 minus tota! paid/outs& The tota! actua!
cash and credit/card pa(ments received, 'hich are reported on the
cashier-s report, 'i!! match the tota! $an0 deposit :gure& The amount
transferred to accounts receiva$!e 1A)T TR ALR2 'i!! correspond to
toda(-s outstanding accounts receiva$!e 1Toda(-s Outstd ALR2&
Operating Statistics
The night auditor 'i!! prepare the dai!( operating statistics for the
genera! manager and the various department directors& This ,uic0
summar( provides a revie' of the da(-s activities and the hote!-s
success in meeting :nancia! $udget targets& %ote! genera! managers
re!( on these statistics as operationa! feed$ac0 mechanisms $ecause
the( provide information on the need to modif( e#isting operationa!
procedures and offer insight into $udgeting for future operationa!
procedures& A!so, these :gures $ecome part of the hote!-s historica!
operations record& The rooms so!d, rooms vacant, and rooms out of
order are determined $( assessing the house0eeping modu!e and the
house0eeper-s report& The num$er of comp!imentar( rooms 1rooms
comp2 is determined $( revie'ing guest reservations, registration
cards, and fo!ios& A ,uic0 method used to determine occupanc(
percentage, dou$!e occupanc( percentage, (ie!d, average dai!( rate,
and Rev6AR is sho'n& Room income for the da( is o$tained from
the tota! room charges that 'ere posted after a certain time in the
evening 1$et'een 77p&m& and midnight2 and an( ha!f/da( rate
charges& The num$er of guests is provided $( the 6)S registration
modu!e& The num$er of no/sho's is compi!ed $( ta!!(ing the
num$er of reservations 'ith a con:rmed status that did not sho'&
Not inc!uded in this :gure are guaranteed reservations, 'hich are
processed 'ith a credit/card num$er regard!ess of 'hether the guest
sho'ed& The preparation of a night audit report can $e ver( time/
consuming& %o'ever, 'ith a great dea! of cooperation, p!anning,
and organi?ation, com$ined 'ith the use of a 6)S that interfaces
'ith a point/of/sa!e s(stem, the time can $e great!( reduced& The
accurate preparation of the night audit report provides an essentia!
contro! and communication too! for management&
Daily Flash !eport:
The dai!( @ash report, a 6)S !isting of departmenta! tota!s $( da(,
period to date, and (ear to date, is a ver( usefu! report for genera!
managers and department managers and supervisors& This report is
revie'ed on a dai!( $asis to indicate ho' successfu! a department
manager 'as the previous da( in achieving sa!es& This too! is
important in discussing strategies for the successfu! achievement of
:nancia! goa!s&
Ta/ !esidency Hotel 0 Hotel
In &angalore
Five star Ta3 Residenc( anga!ore is
an ec!ectic $!end of materia!
p!easures and aesthetic $eaut(&
Over!oo0ing +a0e U!soor, the Ta3
Residenc( offers pictures,ue vie's
of the cit( of gardens&
Strategica!!( !ocated, Ta3 Residenc( anga!ore is e,uipped to hand!e the
needs of $usiness trave!ers and the 'hims of ho!ida(ma0ers&
A!! 7I< rooms at the Ta3 Residenc( anga!ore are cocoons of p!ush comfort
and endearing 'armth& Rep!ete 'ith modern room amenities, the rooms at
the Ta3 Residenc( anga!ore are perfect for $usiness and ho!ida( trave!ers&
Ta3 Residenc( accommodation ref!ects a co!!age of artistic furniture, co!orfu!
tapestries, room faci!ities, ethnic dOcor and state/of/the/art gadgets&
There are a variet( of Restaurants and ars at the Ta3 Residenc( inc!uding
Cafe )o?aic that serves an ec!ectic mi# of )editerranean, )e#ican, Ita!ian,
+e$anese and Indian de!icacies as 'e!! as regu!ar coffee/shop items and pre/
p!ated p!atters, served in innovative st(!es& The Ta3 Residenc( hote! offers an
arra( of $usiness faci!ities inc!uding a fu!!( e,uipped usiness Centre,
offering ;=/hour Internet connectivit(, copierLfacsimi!e faci!ities and
secretaria! service& The Ta3 Residenc( hote! anga!ore a!so offers meeting
Rooms and an,uet Faci!ities&
#ategory: B Star
Access : =8 0ms from Airport,
9 0ms& from Rai!'a( Station,
9 0ms& from us Stand&
!ooms : 7I< Rooms
#uisine : Indian, Chinese, Continenta!
!oom
Facilities :
Centra!!( Air/conditioned, Room Service, %LC running 'ater,
Te!ephone, Fa#, T&>&, Safe Deposit, Channe! )usic
Facilities : usiness Centre, "#ecutive +ounge, an,uet P Conference
Faci!ities, eaut( 6ar!our, %ea!th C!u$, S'imming 6oo!
Ser$ices : Doctor on Ca!!, +aundr(, )one( Changer, Safe Deposit, a$(
Sitting, >a!et, Trave! Des0 Service

Ta3 residenc(, anga!ore
!ooms:
Ta3 Residenc( anga!ore offers comp!ete!( air/conditioned rooms
that are cocoons of si!0en p!easures that ent'ine (ou in a smooth
!u#urious caress&
There are 7II rooms that are categori?ed into Residenc( rooms,
"#ecutive rooms and Standard rooms& "ach room is e,uipped 'ith
faci!ities such as refrigerators, mini $ars, computers, Internet, co!or
te!evisions, sate!!ite te!evision etc&
Sta( at the Ta3 Residenc( rooms and un'ind in st(!e& Fee! ensconced
$( e#pensive tapestries, modern furniture, soft and ca!ming
am$ience and a$ove a!! s'ift and efficient room service&
!estaurants:
>isit the Ta3 Residenc( hote! for a sumptuous dining e#perience that
'ou!d !inger on (our taste $uds for a !ong time& Right from forma!
to casua! dining, (ou can en3o( them a!! at the Ta3 Residenc(
restaurants&
#af1 ,o2aic: "n3o( an ec!ectic mi# of Indian and internationa!
de!icacies during a visit to this ;=/hour cafO& From Tandoori
specia!ties to Cesar sa!ads, the cafO offers an interesting menu to its
visitors& Add to it the re!a#ed am$ience that enve!ope the entire
p!ace and (ou have a memora$!e dining e#perience on (our p!atter&
,emories of #hina: From pra'ns in hot gar!ic sauce to S?ech'an
crisp( vegeta$!es, this Chinese specia!it( restaurant is indeed a
gourmet4s de!ight& esides, the ama?ing dOcor and perfect hospita!it(
offered at this fine restaurant ma0es (our visit a!! the more specia!&
'ra2e: This is a must visit p!ace 'ith its de!icious stea0s and
ama?ing coc0tai!s to tic0!e (our taste $uds& The Duo 6i!ipino $and
that performs in the evenings is another attraction at this restaurant
cum $ar
Qour taste $uds 'ou!d sure!( !ove ever( moment of (our sta( at the
Ta3 Residenc( hote! in anga!ore& It 'ou!d not $e surprising to see
(ou return for an encore in the near future&
Front Office department in Ta/ !esidency3 &angalore:
The FRONT OFFIC" is the nerve center of a hote!& )em$ers of the front/
office staff 'e!come the guests, carr( their !uggage, he!p them register, give
them their room 0e(s and mai!, ans'er ,uestions a$out the activities in the
hote! and surrounding area, and fina!!( chec0 them out& In fact, the on!(
direct contact most guests have 'ith hote! emp!o(ees, other than in the
restaurants, is 'ith mem$ers of the front/office staff&
The front office functions can $e divided into five genera! areas*
7& reception
;& e!! service
<& )ai! and information
=& Concierge
B& Cashiers and night auditors
t'o ma3or departments are represented in this !ist& The emp!o(ees staffing
the first four areas are in the rooms department& The fifth is the financia!
area, 'here guest charges are accumu!ated and posted to the $i!!s, and a!!
cash transactions are consummated& These are a!! accounting/department
functions, and so the cashiers and night auditors are in that department&
a2 Front Office* Se!! guestrooms. register guests and design. )aintain
accurate. 6rovide information. Coordinate guest services. guestrooms
)aintain guest account statements. room statistics, and room 0e( inventories
and comp!ete proper financia! sett!ements
$2 Reservation* Receive and process reservation re,uests for future. Eith
techno!og( deve!opment, the Reservation. overnight accommodations&
Department can, on rea! time, access the num$er and t(pes of rooms
avai!a$!e, various room rates, and furnishings&
Night auditing in Ta/ !esidency3 &angalore:


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