In order to improve the efficiency of its accounting and reporting systems, Astra Life upgraded its enterprise financial management solution. The results include a 6-day reduction in the month-end closing process, a 75% reduction in reporting time, and a 72% reduction in accounts payable transaction time. How did they achieve such impressive figures?
In addition to being difficult to manage, intangible assets have traditionally been a challenge in terms of communicating their value. Financial reporting has not evolved fast enough to adequately capture the true value of the organisation’s intangible assets and to address the needs of business decision makers.
There are several functions in the finance team of hotels, each serving a different purpose in hotel financial management. Whilst some of these may overlap, they include: financial accounting, cost accounting, tax accounting, auditing and managerial accounting. With the advent of technology, hotel accounting software has gained a significant role in helping these finance function of hotels.
Ledgers are the backbone of any accounting system. They are the central repository for all accounting data of an organisation and are pivotal to financial reporting. An organisation’s financial statements are derived from ledgers.
Most organisations have plans. There is, however, a huge difference between a good plan and a bad plan. A bad plan, for example, is one that consists only of costs and revenues. This plan provides no guidance for the organisation regarding how it is to achieve the revenue targets. There is no linkage between the high level goals and the day-to-day activities necessary to achieve them.
In today’s complex and rapidly changing business climate, there is an increased demand for top management to better observe, measure, and manage their business. Planning and budgeting plays an important role in enterprise performance management. However, in many organisations, planning and budgeting is not seen as adding value since:
In a study by the Chartered Institute of Management Accountants (CIMA), different types of training and development methods were ranked according to how useful each one was rated by senior finance professionals.
The top 4 useful types were “learning through doing”, followed by “external training courses supported by the organisation”, “external continuing professional development supported by the organisation”, and “in-house education and training face-to-face”.
Businesses, no matter how big or small, all want to make high quality, impactful business decisions. In order to be able to do so, the business must be equipped with accurate, fact-based and timely data. This is where management accounting comes in.
Since the early days, Management Accounting has played a critical role in helping executives to make impactful decisions. However, many people have easily mistaken Management Accounting for "Financial Accounting". When you clearly understand these two concepts, you will see that they have obvious fundamental differences.
In today’s modern business environment, accounting is not solely about getting the numbers right anymore. It is how the data generated from accounting can contribute to decision-making, and thus drive growth. The same applies to accounting for hotels.