Night audit process

• 1. Complete outstanding postings
  2. Reconcile the room status discrepancies
  3. Balance all departments
  4. Verify room rate
  5. Verify no-show reservation
  6. Post room rate and tax
  7. Prepare reports
  8. Deposit Cash
  9. Backup the system
  10. Distribute report
• 1 Complete outstanding postings • The auditor verifies that all voucher posting for revenue center transactions have been completed. The night auditor may also need to record the not posted front office transactions.
• 2 Reconcile the room status discrepancies The night auditor is responsible for ensuring that discrepancies between the daily housekeeper's report and the front office room status system are reconciled before the end of the day.
• 3 Balance all departments

  •The posting s to guest and non-guest accounts must equal the amount charged at revenue outlets for the front office accounting system to be considered in balance.
• 4 Verify room rate

  The report shows the rack rate for each room and the actual rate at which the room was sold, providing an opportunity to analyze room revenue. If a room's rack and actual rates do not agree, there are several factors for the auditor to consider:
• 5 Verify no-show reservation

  It is the responsibility of the night auditor to clear the reservation rack file and post charges to no-show account. In posting no-show charges, it must be verified that the reservation was guaranteed, and the guest never arrived.
• 6 Post room rate and tax

  The posting of room rates and tax to all guest folios is typically begun at the end of the day. Direct posting of room rate and tax at any time is one of the great advantage of a computerized system
• 7 Prepare reports

  The auditor is typically responsible for preparation of reports which indicates the status of front office activities
• 8 Deposit Cash

  Often the night auditor is responsible for preparing cash deposit as a part of the audit process. Since account and departmental balancing often involves cash transaction, cash depositing may depend on a successful audit. If front office cash receipt have not yet been deposited, the auditor compares the posting with cash payment and paid out (net cash receipts) with actual cash on hand.
• 9. Backup the system

  This step applies only to computerized front office system. Since computer system eliminates the need for a room rack, reservation card and a variety of other traditional front office forms and devices, the front office becomes very dependent on the proper functions with the computer system. Back-up reports must be run in a timely manner to enable smooth operation of the hotel in the event of computer system failure.
• 10 Distribute report Due to the sensitive nature of front office transactions, the night auditor must take care to deliver appropriate report in a meaningful format and a timely manner. The distribution of reports is the final step in the audit routine.