The Night Audit Process

Recapping your day with a front office night audit process can be an important part of a larger property’s accounting and in general, good business practice. If your property doesn’t already perform a night audit, discover below what exactly it is and the important functions that should be performed during this process.

What is a night audit?

Call it the end of the day process, or the front desk night audit process; night audits are an important part of a larger property’s accounting. The process is designed to capture all financial activity of the property that has taken place that day and ensures the rollover from one business day to the next by closing the daily cash flow.

The most convenient time to perform a night audit is between the late evening and early morning, essentially after the business day closes.

Some important functions of the night audit include:

  • Counting and capturing cash flow
  • Noting payment statuses on invoices that need follow up the next morning
  • Ensuring rollover from one business day to the next
  • Checking and verifying room rates
  • Verifying no-shows for the day
  • Generating night-audit reports regarding performance for the day

A night auditor often works into the evening or overnight, performing the above functions, while also completing front desk tasks. The auditor accounts for the day’s business and stays on the property to better serve the evening and overnight needs of guests. If you have a night auditor, it is important for them to clearly understand their role and responsibility for what needs to be accomplished each night.

Hiring a night auditor

An important aspect of hiring a night auditor is knowing what to look for. Because the night auditor is typically there by themselves, they need to be self-motivated and be able to handle problems on their own, and in a graceful manner. Your night auditor should also be good with figures, as they are reconciling the numbers at the end of the day.

Night audit reports

Night audit reports provide important insights into your property’s daily transactions, payments, open invoices, reservations, and general numbers for the day. These reports help paint the picture on how to keep costs down and enhance the bottom line. Your reports should include metrics like a revenue report, accommodation report, credit report, tax report, and more.

With a Cloud PMS in place, the process of night audits becomes simplified and streamlined. The key piece here is automation. This helps to reduce inefficiencies and mistakes for those who handle the night audit process at your property.

To learn more about rezStream’s Cloud PMS, be sure to schedule a demo (add demo link here) and see if our software is the right fit for your business.

Published: September 12, 2019