A New Method to Month-end Reconciliation

The month-end reconciliation course of serves as a vital course of globally in hospitality finance, the place all monetary information comes collectively to summarize financials and efficiency. A current survey of HFTP members, taken forward of the HFTP 2023 Annual Conference this previous October, uncovered a stark actuality: lower than 20 % of respondents can finalize this course of inside 5 days, with a big 12 % taking up 11 days. This lag in acquiring correct efficiency info has change into a norm for a lot of companies – despite the fact that it’s impacting total efficiency.

In our session, “Speed up Closing with Precision: Professional Methods to Increase Effectivity Whereas Guaranteeing Monetary Accuracy” on the HFTP Annual Conference, we mentioned a few of the the explanation why that is the case and explored a few of the options that would make a distinction.

Key Methods to Speed up Month-end Closing

1. Communication Excellence: Bridge Inside and Exterior Gaps

Communication emerged as a big hindrance, each inside groups and with exterior stakeholders. Boundaries typically come up from previous disengagement by predecessors and a notion of finance interactions as ‘reprimands.’ Methods for enchancment embrace assertiveness coaching, energetic listening, extra frequent check-ins between groups (i.e., not solely if you want one thing), energetic teaching of economic principals to non-finance leaders, and the usage of checklists to make sure job continuity throughout unexpected circumstances.

2. Steady Shut: Proactive Administration of Accounts

Whereas ‘steady shut’ is a confirmed technique for environment friendly month-end closing, our survey revealed that solely 7 % undertake it persistently. This strategy spreads the work over the month, addressing journal entries and different transactional actions as they happen relatively than permitting them to construct up. Proactive and environment friendly, it aids in error detection, price range upkeep, and total preparedness. The very fact so few undertake this strategy (regardless of its benefits) could sign a necessity for course of reassessment.

3. AI and Course of Automation: Reworking the Finance Panorama

AI and course of automation have gotten indispensable and redefining hospitality finance. Whereas expertise has streamlined operations, gaps persist – that are normally crammed by human intervention (folks copying information and gazing spreadsheets!). Clever automation utilizing digital employees can get rid of these handbook duties, permitting groups to give attention to advanced points. These digital employees can run on any present software program, they usually enormously improve effectivity and free human assets for strategic endeavours.

What’s extra, they’ll additionally handle the business’s expertise scarcity, too. Whereas not changing people, they take away repetitive processes which can be typically probably the most irritating for group members, they usually additionally alleviate stress throughout peak durations. By automating repetitive duties, digital employees contribute to happier staff and company, and finally, extra worthwhile companies.

The Energy of Digital Staff: The Davidson Hospitality Case Examine

As we heard within the session at Annual Conference, Davidson Hospitality makes use of a Centelli Digital Employee to undertake financial institution reconciliations with transformative outcomes. Previously a handbook and irregular course of, digital employees now deal with every day reconciliations throughout over 700 transactions and roughly 140 financial institution accounts. By automating transaction downloads, reviewing cryptic financial institution info, and updating the overall ledger, they highlight how clever automation can enhance effectivity, accuracy and timeliness in monetary processes.

The session “Speed up Closing with Precision: Professional Methods to Increase Effectivity Whereas Guaranteeing Monetary Accuracy” was offered on the HFTP 2023 Annual Conference by:

• Thomas Smith, Chief Enterprise Officer, Imperial Golf Membership

• Aric Briggle, Regional Vice President Resort Finance, Davidson Hospitality Group

• Rajan Gupta, Managing Associate, Centelli

• Moderator Lisa Martin, Regional Director Resort Finance, Davidson Hospitality Group