This PPT includes a brief information about the accounting used in hotels. By reading this PPT one can get a brief knowledge about the accounting in hotels. Only purpose of this PPT is to help student and those who need help to increase their knowledge of front office accounting or hotel accounting.

1. FRONT
OFFICE
Subtitle Application of accounting fundamentals in front office
Name :- Kishlay kumar
Course:-BHMCT
Subject :- front office
Subject Code:-HM-403
Email:- kishlayk004@gmail.com

2. Introduction
Accounting is a very importer part of any business and it is the systematic way
of recordation of the financial transactions of a business.
• A front office accounting system is a set of procedures used to prepare,
maintain, monitor, record the transection of guests and group and other non-
guests using the hotel facilities and service.
• The front office ability to collect outstanding balances depending upon the
uses and performance of the accounting system followed by hotel .
• Accounting is used to record keeping, tracking transection and make a
financial report.

3. • Record keeping system :- One of
the main parts of accounting is
recordkeeping or bookkeeping.
Recordkeeping is the process of
recording transactions and
events in an accounting system
with the help of standard set of
accounting policies and
procedure.
• Transection tracking :- it is the
process of tracking or collecting
information about the transections
within the organization or business.
• Financial reporting:- It is the process
of collecting all the data/transection
records like income statement,
balance sheet, statement of cash flow
together to form a report at the end
of the period.

4. Account
• An account is a system of accumulating and summarizing financial data on
a form or sheet of computerized system. It contains and stores the various
business transections held during various stages of guest stay in the hotel.
• During the pre-arrival , the guest accounting system collect data related to the type of reservation the
guest has made and tracks prepayments and advance deposits.
• When a guest arrives at the front desk, the guest accounting system documents the room rates and
the taxes/discounts applicable at the registration.
• During occupancy, the guest accounting system tracks the guest transactions and posts them into
appropriate folios.
• At the time of check-out, the guest accounting system also ensures payment for facilities and services
availed by the guest.

5. There are two type of accounts :-
• Guest account :- A guest account is the is made to record the transection between
the guest and the hotel . A guest account is created after guest guarantee the
reservation by paying advance or at the time of registration. On the basis of all the
transactions the hotel creates the final bill which guest need to clear at the time of
check out or in between his stay.
• Non guest account :- As the name suggest a non guest account is a account that
contains records of a walk-in customer that is non-staying and non-guest with
transactions between the hotel like renting the hotel amenities such as pools.
• Skipper:- The account is transferred to the city ledger (as a non-guest account).
• Credit settlement:-The front desk cashier transfers the balance to the city ledger.
• Guaranteed no-show:- The account is normally recorded in the city sales ledger.
Types of accounts

6. Front office folios
• A foliois a statement of all transactions (charges/debits and
payments/credits) affecting the balance of a single account.
• All transactions which increase (charges/debits) or decrease
(payments/credits) the balances of the account are recorded on the folio.
• At settlement, a guest folio should be returned to zero balanceby cash
payment or by transfer to an approved credit card or direct billing
account.
• The process of recording transactions on a folio is called posting.

7. Type of folios
• There are four type of folios:-
• Guest folios:accounts assigned to individual persons or guestrooms
• Master folios:accounts assigned to more than one person or
guestroom, usually reserved for group accounts
• Non-guestor semi-permanent folios:accounts assigned to non-guest
business or agencies with hotel charge purchase privileges
• Employee folios:accounts assigned to employees with charge purchase
privileges.
Every folio should have a unique serial number. The folio number is
required for many reasons.

8. • First it works as the identification number to help the front office in auditing.
• Second, the folio serial numbers may be used to index information or to call or look up information in
an automated accounting system.
• Finally, folio number provides cross reference of documentation. Folios have specific lengths and
can hold only a limited number of postings in a non-automated system. When a balance is carried
forward to a new folio, the old folio number acts as a reference of where the balance originated.