Santosh International Hotelier and Trainer. View all articles | Contact author

Hotel Revenue Audit

1. Review the current accounts receivable (A/R) aging report. Select at least 25 accounts and determine whether or not all categories of receivables are adequately covered. Heavier concentration should be placed on old and unusual items. The total amount selected for testing should be between 15 percent and 20 percent of the city ledger.

            Test for the following:

·         Agreement to supporting documentation, either on file with the applicable folios, banquet checks, and other related documents, or to online billing.

·         Initial billing date is timely, based on check-out date.

·         Consistent documentation is maintained of collection efforts and approved direct bill authorization.

·         Unusual items are reasonable (e.g., credit balances, returned checks, skip accounts, one company with balance in several different categories.)

2. If material, or if unusual items are noted, test for proper controls, including review of the high balance report and Telecheck procedures.
3. Trace the total of the aging report to the general ledger and the A/R recap report.
4. Review write-offs, and if material, review selected write-offs for adequate support, proper collection efforts, proper approval, and reason for write-off. Be alert to consistent causes (e.g. front desk personnel failure to follow established hotel policies).

To Download 330 Plus Hotel Training and Management Tools, Please Visit :

http://www.hoteltrainingprogramme.com