Accountants for the Hospitality Industry

Whether you own or manage a hotel, restaurant, or other accommodation, you know how much work is required to run and carry out your business. There are so many small but vastly important parts that go into it. You would love to continue to expand, but you are constantly caught up with making sure the financial health of your business looks good. 

With that being said, the financial health of your business should never be overlooked. Especially in this industry, staying on top of compliance, financial data, etc. is crucial. That is what helps you see how well it is doing and what could be improved. However, constantly having to accomplish small and tedious tasks, such as bookkeeping, checking for inaccurate data, and staying on top of changing regulations, can be extremely time-consuming. Your main focus has shifted from growing your business to managing these tasks.

That is where our accountants at Cooper Norman can help. We are here to provide you with amazing solutions, making sure we give you the most accurate results in each service we offer. As there are many moving parts of a business you have to take care of, we want to lift this off your plate and eliminate any unnecessary stress so that you can focus on the major goals of the company.

Accountants for Hospitality Industry
Accountants for Hospitality Industry
Accountants for Hospitality Industry

What Businesses Fall Under the Hospitality Industry?

The hospitality industry is a very large sector in business. The main purpose of any business that falls under the hospitality industry is to host and provide a service where the customer has a good experience. Hospitality means to welcome or be generous toward a guest and make sure they feel taken care of. That is exactly what these businesses do. Most often, these businesses are associated with travel and tourism. 

1. Hotels

This is the main type of business that comes to mind when thinking of hospitality. This can consist of motels, hotel chains, resorts, etc. Their main purpose is to accommodate the guests and make sure they feel comfortable and taken care of. This can fuel travel, as they are more likely to return if they had a good experience with the room, staff, and overall stay. 

2. Travel 

Companies related to traveling, such as airlines, travel agencies, shuttles, etc. are all a part of the hospitality industry by providing a service to fulfill all the needs for someone to travel. This also fuels travel and tourism by allowing customers to experience new places and things they enjoy.

3. Restaurants 

Food and beverage companies play a major role in hospitality. Whether they are an integrated service as a part of a hotel or their own restaurant, they aim to make every guest’s experience enjoyable. Good food can make all the difference for both a local and a traveler and can be a part of many events, such as work meetings, conferences, parties, or weddings. 

4. Recreation

Recreation plays an important factor in hospitality and adds to that enjoyable experience for customers. Recreational activities and entertainment attract tourists and travelers and can skyrocket visitations to a certain destination. This can include major theme parks, such as Disneyland and Universal Studios, national parks, football stadiums, or other attractions. 

Main Financial Challenges in the Hospitality Industry 

No matter what type of business in this industry, there are a lot of moving parts to be aware of and consider. These businesses tend to be cyclical with the economy, which can impose certain financial challenges on them. 

Cash Flow 

Since companies in the hospitality sector are cyclical, there is an expectation that demand will be high during certain seasons or holidays and drop significantly during the off-season. They rely heavily on demand and consumer spending. They have to make sure their cash flow is still managed well, even in the lower demand seasons where it decreases. Adopting good budgeting and forecasting tools can help with this. 

Increased Operational Costs

Inflation has heavily increased prices everywhere, including operational costs. Operational costs becoming too high to manage or continue to provide good quality service can plummet growth and profitability. 

Maintaining Compliance 

Businesses like hotels or restaurants are chains that offer services in many different geographical locations. Regulations with health and safety, the law, and licensing may be different depending on the location. Staying on top of the differing regulations, while also checking to see if they change, can be time-consuming and challenging. If compliance is not maintained, there can be heavy fines as penalties. 

Cybersecurity Threats 

Cybersecurity attacks have happened more frequently in recent years. Businesses in this industry keep any customer’s personal information and payment data, which makes cybersecurity attackers more motivated to target and hijack these types of businesses. Using cybersecurity tools or having an accountant who can help you protect your business against financial theft is crucial. 

How Cooper Norman Can Help

At Cooper Norman, we can help your business through these challenges. We have over 70 years of experience working with businesses, and understanding the problems that you may be facing. Our team has the expertise to help you work through these things while also eliminating unnecessary stress from trying to keep up with the ever-changing financial world. 

  • Offer Meaningful Insight: Our team of highly knowledgeable accounting professionals can help bring meaningful insight to your financial performance, any roadblocks to look out for, and where you can improve to grow more. They can help you understand the industry better so that you can make better decisions moving forward. 
  • Budgeting and Forecasting: We can help you build out a budget that will work for your business goals and make you the most profitable. We also have top-notch tools that can provide forecasting insight to know certain trends to look out for and any adjustments we may need to make after. 
  • Audits: Audits allow us to examine your financial records and make sure everything looks good. This can also help us figure out a way for you to minimize costs while still providing high value. 
  • BOIR: A service we just recently introduced is filing a Beneficial Ownership Information Report (BOIR). This report shows all the beneficial owners of a business to enhance transparency and protect the business against any financial crimes, such as theft. Filing this report may be confusing to some, especially because it was recently introduced, so we are here to help.

Contact Us Today

As discussed above, owning and operating a business in the hospitality industry is no easy feat. There are a lot of things to think about that can be overwhelming. At Cooper Norman, our goal is to mitigate these problems and provide you with accurate results. We are also here to make your load a little bit lighter so that you can put your focus towards your main goals. Reach out to us to see what we can do for you. 

Idaho Falls

1000 Riverwalk Drive Suite 100
PO Box 51330
Idaho Falls, Idaho 83405

208.523.0862 
208.525.8038 (Fax)

Pocatello

444 Hospital Way
Suite 555
Pocatello, Idaho 83201

208.232.6006 
208.232.6007 (Fax)

Blackfoot

1495 Parkway Dr.
STE C
Blackfoot, ID 83221

208.232.6006

Rexburg

859 South Yellowstone
Suite 204
Rexburg, Idaho 83440

208.523.0862 
208.525.8038 (Fax)

Twin Falls

722 North College Road
PO Box 5399
Twin Falls, Idaho 83303

208.733.6581 
208.734.9609 (Fax)