COURSE NAME:Management front office operation

QUESTION/ANSWERS

Ques:1. What ideas would you suggest to facilitate a more effective processing of guest and
non-guest charge vouchers? How might the daily audit be aided by such changes? Is the
accumulated-postings routine for non-guest accounts an effective plan?

Ans: A few suggestions come to mind for making a more efficient processing of charge
coupons for guests and non-guests. First, the entire voucher processing procedure may be
made more efficient by putting in place a computerized system. In this manner, the odds of
mistakes or delays are decreased because vouchers may be created, monitored, and reconciled
with ease. Furthermore, ensuring that the employees processing vouchers have received the
necessary training may help guarantee that they are knowledgeable about the protocols and
capable of managing them effectively.

Let's now discuss the daily audit. The daily audit can benefit from these modifications in a
number of ways. Additionally, it can automate some audit tasks, including creating reports or
adding up totals, which will increase accuracy and save time.

The accumulated-postings procedure for non-guest accounts has the potential to be useful if
executed and overseen appropriately. Charges for non-guest accounts are accumulated during
the day and posted in bulk at the conclusion of the routine. It can lessen the likelihood of
mistakes and speed up the publishing process. Nonetheless, it's critical to have appropriate
controls in place to guarantee that every charge is duly documented and accounted for. To
confirm the accuracy of the posts, audits and reconciliations should be carried out on a
regular basis.

The fee voucher procedure may ultimately be made more efficient by implementing digital
technology, providing training, and having the right controls in place. This will help the daily
audit process. It all boils down to finding the right balance and ensuring accuracy and
efficiency.

Ques:2. What could be done to improve the hotel’s billing of non-guest accounts? What

could be done to improve collection of outstanding balances?

Ans: Gill, hello! A few actions may be taken to enhance the hotel's billing of accounts that
are not guests. First and foremost, it's critical to establish a uniform and transparent billing
procedure. This involves making certain that all costs are appropriately documented and that
bills are produced on time. The likelihood of mistakes or delays can be decreased, and this
process can be streamlined by using a computerized system. Having a dedicated employee or
team in charge of charging non-guest accounts can also help guarantee that it gets the right
attention and follow-up.

Let's now discuss how to enhance the process of collecting delinquent amounts. Setting up
explicit payment terms and informing non-guest account holders of them is one strategy. This
might involve establishing deadlines and reminding people about outstanding amounts.
It can also be easier for account holders to settle their accounts if numerous payment
alternatives are offered, such as online payment portals or automated payment plans.
Following up on past-due accounts should be done pro-actively, which may entail getting in
touch with the account holders and attending to any worries or problems they may be
experiencing.
The hotel may strengthen the collection of delinquent amounts and optimize its billing
procedure for non-guest accounts by putting these ideas into practice. To guarantee on-time
payments, it all comes down to having clear policies, good communication, and a proactive
attitude.

Ques:3 What are the advantages and disadvantages to having a high volume of non-guest

accounts? What about the cost of carrying and collecting outstanding balances? How

might the hotel’s cash flow be affected by such transactions?

Ans: Possessing a large number of non-guest accounts has benefits and drawbacks.
Positively, the hotel may see an increase in income, particularly if these accounts are used
often. Additionally, it can aid in fostering connections with neighborhood companies and
associations, which may result in collaborations or recommendations.
But there are a few disadvantages to take into account. It might take a lot of effort and extra
resources to manage a large number of non-guest accounts. Increased outstanding amounts
might also pose a danger to the hotel's cash flow and require more work in the collection
process.
Speaking of overdue amounts, there may be operational as well as financial ramifications to
the carrying and collection costs. The hotel's capacity to pay bills and cover expenditures or
make investments in other areas may be hampered by carrying outstanding balances, which
indicate that its finances are being committed to unpaid debts. In addition, personnel time,
communication expenses, and possible legal proceedings are some of the costs associated
with the process of recovering unpaid amounts. In order to minimize these expenses, the hotel
must find a balance between giving credit to non-guest accounts and making sure that
payments are made on schedule.
Transactions involving accounts that are not guests may affect cash flow. The hotel can
increase cash flow by bringing in more money if it has a large frequency of non-guest
account transactions with timely payments. Cash flow issues might arise, though, if there are
delays in payment or a sizable amount of unpaid balances, since the hotel could have to wait
longer to get the money it needs to run its business.

In conclusion, a high volume of non-guest accounts might provide income for the hotel, but
maintaining a sound financial position requires careful balance management, careful
consideration of related expenses, and regular cash flow monitoring.