| The demand and supply mismatch has prompted | | | | and create values thus the importance of |
| many national and international hotel chains to | | | | accounting can not be over- emphasized so the |
| focus their energy towards expansion in India. | | | | subject becomes utmost both to the |
| The next few years will witness the opening of | | | | academicians and practicing managers the most |
| several hotels which will span the length and | | | | crucial decisions of a hotel are related to |
| breadth of the nation and these developments | | | | accounting. |
| are well overdue and a welcome metamorphosis | | | | The success of a hotel depends upon adequate |
| in the growth pattern of our industry. | | | | return on its investments. The investors or |
| The buzz word "accounting" is the key drive of | | | | shareholders can be attracted by a firm only by |
| the hospitality industry as it has a crucial role to | | | | maximization of their wealth through the |
| play if industry has to sustain its high growth. | | | | application of principles and procedures. The |
| Accounting is simply a means to an end. It is | | | | discipline of corporate accounting is important not |
| much more than numbers. The student of | | | | only to the manager but also to others who deal |
| hospitality industry of ten thinks that it is nothing | | | | with a hotel. All the branches of accounting jobs |
| but dancing of numbers within a T shape | | | | are useful for the hospitality industry. Financial |
| boundary. It totally relates to money or money or | | | | accounting collects and classifies the monetary |
| management of finance. It is the life blood and | | | | data. Cost accounting is useful for reports of |
| nerve centre of a business. Just as circulation of | | | | current and prospective cost. management |
| blood is essential for maintaining life, accounting is | | | | accounting gives information for the purpose of |
| very essential for smooth running of the business. | | | | control. Tax accounting relates to preparation and |
| It has been rightly termed as universal lubricant | | | | filing of tax and auditing involved in receiving and |
| which keeps the hospitality industry dynamic. No | | | | evaluating of taxes. |
| hotel whether big or medium or small can be | | | | The hospitality manager can know the following |
| started without a good system of accounting. | | | | information from accounting: |
| Right from the very beginning i.e, conceiving an | | | | - How much cash is available to pay bills? |
| idea to business, it needed promoter to establish | | | | - What was the total amount on payroll last pay |
| the hotel. Hotel acquire fixed assets, make | | | | period? |
| investigations such as market surveys, etc., | | | | - What amount of food inventory is on hand at |
| develop products, keep men and machine at | | | | the beginning of the month? |
| work,encourage management to make progress | | | | - What is the ratio of various departments, sale? |