What is Front Office Accounting? Types of Front Office Accounts

What is Front Office Accounting? Types of Front Office Accounts

An Account is a form on which financial data are accumulated & summarized. The increase and decrease in an account are calculated and the resulting monetary amount is the account balance. Any financial transaction that occurs in a hotel may affect several accounts. The simplest form an account resembles the letter T

Front Office accounting documents typically use a Journal form in non-automated or semi-automated record keeping system that looks like:


In hotels, the Front Desk Cashier maintains guests’ accounts and ensures the settlement of the same

FRONT OFFICE ACCOUNTING

Front Office Accounting system monitors and charts the transactions of guests, non-guests, agencies using the hotels’ services and facilities.

 It captures and records guest data during each stage of the guest cycle

Functions of Front Office Accounting

 Creation & maintenance of guest and non-guest accounts accurately.
Tracking financial transactions of guests throughout the guest cycle.
 Monitoring the credit limit of guest and asking for a deposit from guests in case of high outstanding balance.
 Preparing a high balance report for collection and informing management about the same. Maintaining effective control over cash and credit transactions.

TYPES OF FRONT OFFICE ACCOUNTS

 1. Guest Account: is a record of financial transactions that occur between a guest and the hotel.

Created: a. during registration
 b. when reservations are guaranteed

Updated: on every transaction or on a daily basis

Settled: a. on guest checkout
 b. when the account exceeds credit limit

2. Non-guest Account: is the record of financial transactions that takes place between a non-resident guest and the hotel. Also known as City Account/ House Account.

 Created: a. for local businesses and agencies.
b. for guests who leaves without the settlement
 c. for guests with direct billing d. for guaranteed reservation with no show status

 Updated: on a weekly or monthly basis

Settled: payment is collected by the accounts or credit control department.

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