Accounting is complex for any industry, be it healthcare, tourism and hospitality, architecture and construction or law firms, but for businesses maintaining a hefty cashflow, its distinctively hard to perform account-related tasks accurately. The continuous innovation in technology, ever growing consumer expectations, and strong competition are the factors redefining accounting protocols.
Aurangzeb Chawla, the Tax Partner at LANOP Business and Tax Advisors, mentioned in an interview how the dynamics of the accountancy firm have changed because of the revolution in the service.
“The resources have immensely reduced and we serve all our clients to come up with solutions that work best for both of us, we have to act as business partners with our clients. Even the Best Hospitality Accountants in London fall short for that.”
Complex Accounting Procedures:
What makes accounting for hospitality and tourism industry difficult?
- Receiving payments through different modes and models from a huge clientele.
- Keeping a check on bank related transaction, like, making payments, paying bills, acquiring goods etc.
- Keeping a track of the life of fixed assets, like, land and building, electric generators, office gear such as furniture, vehicles, copyright and patent of the Hospitality Business etc.
- Making budgets for hotels using parameters like cost per visitor, profit margin, revenue generated per tour.
The Revolution in Hospitality and Tourism Sector in UK:
Like every other industry, hospitality is redefining itself. Because of the change in technology, artificial intelligence, and change in the world’s climate, the tourism and hospitality industry has also undergone shift in operation and administration, similarly, automation, enhancement in customer satisfaction and incorporation of AI within the system has transformed the whole phenomenon of travel and tour industry.
Artificial Intelligence has transformed the way we do things:
Artificial Intelligence is now analysing visitor’s previous data like stays, likes and preferences and dislikes to compute tailored services. Chatbots are handling basic customer inquiries, minimising the load on the staff. AI algorithm can generate awfully individualised marketing strategies that only target the potential customer. In short, all of these changes are transmuting this trade.
ER+VR Assistance:
The visitors can visit the venue, hotel or a spot before actually visiting the spot in reality (Poetic, right?) This aspect has uplifted the whole advertising part to another level but simultaneously increased the cost of marketing. The firm offering the best Accounting services for hospitality industry will incorporate this hike in the budgeting and forecasting.
Change in customer’s behaviours and preferences:
There has been an eminent change in human behaviour witnessed past decade. Global warming, pandemic, the threat of a possible war, all of these factors have affected how we want to live our day to day lives, let alone plan our trips. This has compelled tourism industry to make changes in services they provide, so the Accounting for hospitality tourism and leisure has also evolved catering to this change.
Unavailability of affordable accounting experts:
According to Statista.com, about 71% of hotels and restaurants in UK require unique accounting procedures for their business, necessitating talented accountants or a firm that can offer befitting hotel accounting services and solutions on affordable rates.
Inaccessibility of Accountants for Tax Assistance:
The Hospitality Sector caters for three type of taxes, Corporation Tax, Payroll tax and payable to HMRC. To calculate all three correctly, the restaurant bars must have the accurately-maintained data. In UK, most of the hotels and restaurants rely on accounting software alone to do their accounting. Let’s just face it, is not always the best practice; businesses often crave for human assistance in order to maintain their books.
Speed Accuracy and Compliance:
A fine tax return prepared after the due date will serve the business no good, therefore, it is a must to hire a firm or an accountant who can provide you timely services.
Lanop Accountants and Tax Advisers for Small and Medium Businesses:
Looking for trusted local chartered accountants and tax advisors in Putney, Southwest London? Look no further than Lanop Business and Tax Advisors. We are your dedicated XERO accounting advisers and reliable business advisors, serving the Wandsworth Borough and beyond. While our offices are in Southwest London and Central London, our services extend throughout the UK. Our team is currently working remotely, using Zoom accounts to assist clients from all corners of the country. At Lanop Accountants, we specialize in providing top-notch financial solutions for small and medium businesses. Whether you’re in Putney, Wandsworth, Kingston, Hammersmith, Richmond, Wimbledon, Southwest London, or anywhere else in the UK, we’re here to help you with all your accounting and tax needs. Don’t hesitate to get in touch with us anytime for expert guidance and support.
