Multiple Accounts Bookkeeping for Travel and Tourism
Travel Business Accounting – The travel industry has to deal with a vast range of institutes like agencies, hotels, restaurants, etc. They are scattered in different cities and countries, which makes this industry very vibrant. We at Meru Accounting take care of providing a hassle-free solution to managing all the payments, even from foreign accounts.
The uniqueness of the industry:
Travel and Tourism industry is a unique as compared to the other industry. It has a different course of work and that too changes with the season. Like a travel firm takes their clients on a trip to various places based on clients’ requirements but considering the season at that place. In addition to that, the budget is also an important aspect we need to care of. Thus, we know and understand that how unique this industry is and provide the accounting solutions based on it.
Integration of online business:
Industries around the globe are changing at a fast pace, and so the firms in the travel and tourism industry. Most of the firms have provided services online through their websites. We at Meru Accounting facilitate a smooth integration of your online website with an array of accounting software that increases the efficiency and ease of importing date in the accounting sheets of the software.
Tracking of inventory and receivables:
Travel and tourism firms have linkages with different clients across the world. The firms also have to keep a good association with different institutions like hotels, transportation agencies, food suppliers or restaurants, so they can give their clients a good experience. To help travel industry in managing their inventory and payments because of reception, our professional team carries out the tracking of inventory and account receivables to prevent any disruption in the services.
Timely financial services:
Travel and Tourism industry works at a rapid pace. Thus it’s very essential to know the nitty-gritty of the financial position of the firm. We at Meru Accounting promise to deliver timely financial services so you can focus on the key parameters of your business and increase profits.
Travel planning and business strategies:
The competition in this industry is cut throat. So, we give our clients a good view on their financial viability regularly that helps them plan the trips and develop business strategies to grow and prosper.
It is very significant if you are running a very graceful business like Travel. The travel industry is showing a nice boom as more and more people are showing interest in travelling to different places. Most of the people can’t travel very often, so they wait for a long duration to travel to the desired location. Here, the travel industry has to remain on their toes to fulfil the customer’s demand.
Travel service providers:
- Home-based or Independent Contractors–
They are generally handled by a single or few people with no official place. They will have an agency registered on any non-working official place too. Here, very few people travel through their contacts.
- Niche or Specialty–
This agency provides a tour of a particular sector only. They make the tour package here for a specific group of travellers, or they have one specific place for the tourists to travel.
- Corporate only–
The corporate tour is a particular tour agency that is offered to only the corporate companies. These tour agencies have an excellent idea regarding arranging tours for different companies.
- Franchise –
A franchise is one of the standard ways of doing business. Here, the entity which runs the businesses uses the name of an established brand along with their scheme for the travellers.
Types of Travel businesses:
- Travel booking Agents:-
Travel booking agents do all the arrangements for the journeys. They usually book all the transportation ticketing for travellers.
- Travel service providers:
The travel service providers look after all the things in travelling. They arrange the facilities for staying, travelling to different places, eating, and other essential stuff for travelling.
- Bus Service providers:
The bus service providers provide the buses for travelling in that desired place. As per the capacity of the passengers and the requirement, the bus arrangement occurs.
While running the travel businesses, it is essential to manage the accounts of the agency along with the invoices in a travel agency. Managing the accounting for each of the above differs to a large extent. There are a lot of things in travelling which we have to keep in the right places while accounting.
Things to take care of travel business accounting:
- Revenue recognition
When the travel agency makes the actual travelling for the travellers, they have to make the revenue tracking in a very proper way. The revenue earned through the customers who are adequately bifurcated to make sure that the appropriate management of the income is done.
Properly managing the costs is an essential factor to keep track of the outflow of the capital. The charges are mainly incurred in activities like booking the transportation tickets; the cost involved in the eating items, the individual facilities given to the travellers through external sources, and many other expenses did for the clients.
Meru Accounting provides excellent accounting for Travel Agency. They have better ways to manage the expenses and revenues done in the travel business.
Here are some reports provided by Meru Accounting for your travel business:
Cash flow forecast:
Whenever an actual travelling happens for the travellers, a lot of expense starts. Here, it is essential to keep a proper track of all the entities where the costs are made. It helps the travel agencies to make an appropriate Cash flow forecast. Organisations need to do a detailed analysis of the cash flow. Here, it is easier for the travel agency to make the proper Cash flow forecast.
Budgeting and analysis of deviation:
Every travel agency desires to have a proper budgeting analysis to estimate the cost, expense, and revenue. The accounting service here can provide better Budgeting and analysis of deviation.
Use of Xero for Travel business.
The travel agencies have a different travel package for their customers. The class tracking facility provided by the Xero enables us to track all the travel packages in a very proper way.
Two Bank Accounts.
We set up two Bank accounts for the travel business. One is the client’s trust account, where we make all the travel expenses and income. While the other is the general travel business account, where all the business-related information for the travel agency is kept standardly. This system helps the travel business to track all the financial transactions accurately along with the profitability.
Meru Accounting has a very standard format for providing standard accounting services tailored for the travel business. The main aim is to maintain proper financial recording for the travel business.