Hotel Month-end Close: A Checklist for Accounts

Short answer

A hotel month-end close confirms that every night, bill and payment of the month is in the right place, then produces the profit and loss. In order: close the last night audit, clear the guest ledger, review the city ledger (company and agent invoices), account for OTA and agent commissions, enter and match every supplier bill, post the stores counts, reconcile bank, card and mobile money, accrue what is missing, check VAT and levies, then review the P&L by department.

The checklist

Last night auditRun it for the last day of the month; all nights are posted.
Guest ledgerIn-house folios at month-end are listed with their balances; departed guests with open balances are chased.
City ledgerEvery company and agent invoice for the month is raised; ageing is reviewed and statements sent.
CommissionsOTA and agent commissions for the month are recorded, invoice or not.
Supplier billsEvery delivery of the month has a bill, matched to its order and receipt; missing bills are accrued.
Stores countsMain, kitchen, bar and housekeeping stores are counted; variances posted.
Bank, card and mobile moneyStatements imported and every line matched; fees posted.
Petty cashCounted and topped up; receipts entered.
Accruals and prepaymentsUtilities, wages, insurance and anything else not yet billed or paid in advance.
DepreciationMonthly depreciation journal for furniture, equipment and buildings.
VAT and leviesThe VAT report and levy returns checked against revenue and purchases.
ReviewP&L by department against budget and last year; questions answered before the books are locked.

Guest ledger vs city ledger

	Guest ledger	City ledger
Who	Guests still in house	Companies, agents, departed guests on account
What	Open folios: nights, meals, bar, extras, deposits	Invoices with payment terms
Month-end check	Balances agree with the folios; deposits are matched	Ageing reviewed, statements sent, bad debts considered

Reconciliations that matter

Bank: every line matched; uncleared items explained
M-Pesa or mobile money: payouts and charges matched
Card: settlements against card payments, fees posted
Charge to room clearing account: zero, or explained
Goods received not yet billed: only genuine late bills left
Stores: book stock value equals counted value after posting

A realistic timeline

Day	Do
1	Last night audit, stores counts, petty cash.
2	Bank, card and mobile money reconciliations; supplier bills.
3	City ledger, commissions, accruals, depreciation.
4	VAT check, P&L review, lock the period.

With revenue, purchases and stock already in the system, four working days is achievable for most independent hotels. When numbers have to be typed in from other systems, it often takes two weeks.

In Tivuzo

Nights, folios, bar bills, deliveries and stores issues are already posted, so month-end is checking: reconcile statements, review the ledgers, post counts and accruals, read the reports. See hotel accounting, OTA commission accounting and the hotel accounting buyer's guide.

Month-end questions

What is the city ledger in a hotel?

The accounts receivable for companies, agents and guests who have left with an amount on account, as opposed to the guest ledger of in-house folios.

How long should a hotel month-end take?

Three to five working days for an independent hotel whose systems post automatically; longer when numbers are re-typed.

Do I need to count stores every month-end?

Yes, at least the main, kitchen and bar stores, so food and beverage cost and stock value are right.

What should the owner look at first?

Departmental profit against budget and last year, then cash: receivables ageing and bills due.