Chapter 5 - Chapter 5 Accounting I The accounting function...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 5 Accounting I) The accounting function a. Accounting i. Defintion 1. The process of summarizing and reporting financial transactions. ii. Front office Accounting 1. The process of summarizing and reporting financial transactions occurring at the front desk iii. Back Office Accounting 1. The process of summarizing and documenting the financial activity and standing of the entire hotel. b. Employees dealing with Accounting i. GM-does not need to be a CPA just understand basics of accounting ii. Controller 1. The individual or entire department responsible for maintaining the back office accounting system. c. Generally Accepted Accounting Principles(GAAP) i. Standards and procedures adopted by those responsible for preparing business financial statements for the purpose of ensuring uniformity. ii. All bookkeeping and accounting tasks performed at the front desk or front office will be assumed as front office accounting. iii. All booking and accounting tasks that do not take place in the front office will be considered back office accounting. d. Uniform system of Accounts for Hotels i. Uniform system of accounting for the lodging industry 1. A standard set of accounting procedures used to record a hotel’s financial transactions and condition.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2. USALI gives hoteliers and their accountants a consistent and easily understood “road map” to record revenues and expenses, as well as report the hotel’s overall financial condition. e. Sarbanes- Oxley Act i. Definition 1. Technically known as the Public Company Accounting Reform and Investor Protection Act, the law provides criminal penalties for those found to have committed accounting fraud. 2. Covers a whole range of corporate governance issues including the regulation of auditors. ii. Important Sections 1. 302- Imposes much greater responsibility on top executives at public companies. 2. 404- Requires companies to verify the work quality of those who inspect and report on their bookkeeping and accounting methods. 3. General- Companies must disclose publicly all significant deficiencies and material weaknesses relating to their internal controls and accounting systems. II) Accounting Systems a. Centralized Accounting Systems i. Definition 1. The financial data from the property is transmitted via computer to a “central” location, where it may be recorded and then analyzed by management or combined with other hotel properties for analysis. b.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 8

Chapter 5 - Chapter 5 Accounting I The accounting function...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online