Hotels handle a lot of financial transactions on a daily basis, from guest room charges to food and beverage purchases. Many of these transactions are paid for with credit cards, which means that hotels must be diligent about reconciling credit card entries with their payment processors and property management systems (PMS) to ensure that all transactions are accurately recorded and accounted for. Unfortunately, many hotels still rely on manual processes to reconcile credit card entries, such as spreadsheets and legacy systems. This time-consuming and error-prone task is especially challenging for new accounting team members to learn. Furthermore, delayed or inaccurate credit card reconciliation can leave hotels exposed to guest disputes and financial losses.
The Risks of Delayed or Inaccurate Credit Card Reconciliation
Delayed or inaccurate credit card reconciliation can create several risks for hotels, including:
- Guest disputes: If a guest disputes a credit card charge that has not been correctly reconciled, the hotel may not have the documentation to prove the charge was legitimate. This can result in lost revenue, chargebacks, and damage to the hotel’s reputation.
- Fraudulent charges: Without daily credit card reconciliation, hotels may only detect fraudulent charges once they have already been processed. This can result in financial losses and damage to the hotel’s reputation.
- Compliance issues: Hotels must comply with various regulations and standards related to financial reporting and data security. Without proper credit card reconciliation, hotels may be at risk of non-compliance, which can result in fines and other penalties.
Automated credit card reconciliation solutions like Total Recon’s Credit Recon module can help hotels mitigate the risks associated with manual credit card reconciliation. With Credit Recon, hotels can:
- Reconcile credit card entries automatically: Credit Recon automatically reconciles credit card entries with the processor and PMS, ensuring that all transactions are accurately recorded and accounted for. Any exceptions or discrepancies are highlighted and reported, making it easy for hotels to resolve issues quickly.
- Reconcile in minutes: With Credit Recon, hotels can reconcile credit card entries in minutes instead of hours, freeing up staff time to focus on other tasks.
- Enhance audit compliance: Credit Recon helps hotels maintain audit compliance by providing accurate and timely reconciliation reports.
Daily credit card reconciliation is critical for hotels that handle a high volume of credit card transactions. While manual reconciliation can be time-consuming and error-prone, automated solutions like Total Recon’s Credit Recon module can streamline the process, reduce errors, and enhance audit compliance. By implementing an automated credit card reconciliation solution, hotels can reduce risk exposure, ensure accurate financial reporting, and provide better service to their guests.