HOSPITALITY

A typical day in the operations of a hospitality business is characterized by a wide array of transactions. This includes hosting and pre-booking events, serving meals and drinks, and selling online vouchers, to name just a few examples.

 The hospitality industry's multifaceted and high-volume transaction environment often presents challenges when it comes to tracking and reconciling financial activities. Etica assists our hospitality clients to optimise their transaction management by streamlining the processes of recording, categorising, and reconciling the daily influx of transactions. To enhance cash flow monitoring, Etica collaborates with our clients to implement effective systems. This includes selecting the most suitable Point of Sale (POS) systems, establishing cash control procedures like dual custody of cash handling and recording, conducting routine cash drawer audits, and ensuring timely bank deposits. Additionally, we leverage our inhouse software to automate transaction tracking and reconciliation, incorporating an audit element across all daily financial transactions from funds received to deposits processed into the client's trading account. We offer a range of tailored reports and analyses to give clients insights into their business's current financial and trading position at any given moment.

Within the hospitality industry, transactions frequently span multiple timeframes. For example, a customer may book and pre-pay for an event like the Melbourne Cup or Christmas Day in advance. Alternatively, you might sell gift vouchers online or have patron bar tabs that aren't settled until the day following the event or function. These timing variations can introduce complexity into accounting procedures, as determining when to recognize revenue or expenses has a direct impact on financial reporting.

Inventory plays a pivotal role in the daily operations of hospitality businesses, encompassing everything from fresh ingredients in restaurant kitchens to the miniature shampoo bottles found in hotel rooms. The accurate determination of inventory value can be complex, especially when factors such as food spoilage and supply waste come into play. These variables can diminish inventory value and have repercussions on the overall financial statements of the business.

Australia's tax regulations are in a constant state of flux, making compliance a formidable task. Moreover, the hospitality sector carries its distinct set of tax intricacies, including navigating Goods and Services Tax (GST) on sales, managing Fringe Benefits Tax (FBT) for employee benefits, addressing payroll tax on wages, and not to mention, the complexities of Excise tax in certain instances. It is equally crucial to comprehend the available tax deductions tied to equipment depreciation, repairs, and maintenance.

Navigating payroll within the dynamic hospitality sector, with its diverse working hours and shift allowances, can pose significant challenges. Etica offers a streamlined solution to ensure accurate and timely employee payments. Additionally, we take care of payroll tax calculations, superannuation contributions, and other related responsibilities, allowing you to redirect your time and attention towards the core operations of your business.