Scribd
Upload
68 views2 pages

Control of Cash &amp Credit

The document discusses control of cash and credit in hotels. It outlines establishing credit limits for guests during their stay and ensuring payments are made after departure. Problems may arise if credit terms are not clearly explained to guests or high balance accounts exceed house limits. Strong cash controls include locking cash, tracking bank floats, issuing receipts, and depositing daily collections. Protecting hotel funds involves frequent money drops, limiting cash drawer access, installing alarms, developing money handling procedures, and training staff to handle emergencies.

Uploaded by

Fayisaa Taasoo Galataa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
68 views2 pages

Control of Cash &amp Credit

The document discusses control of cash and credit in hotels. It outlines establishing credit limits for guests during their stay and ensuring payments are made after departure. Problems may arise if credit terms are not clearly explained to guests or high balance accounts exceed house limits. Strong cash controls include locking cash, tracking bank floats, issuing receipts, and depositing daily collections. Protecting hotel funds involves frequent money drops, limiting cash drawer access, installing alarms, developing money handling procedures, and training staff to handle emergencies.

Uploaded by

Fayisaa Taasoo Galataa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Control of Cash & Credit

Table of Contents

CREDIT CONTROL DURING STAY OF A GUEST:


CREDIT CONTROL AFTER DEPARTURE OF GUEST:
PROBLEMS IN CREDIT CONTROL MAY ARISE IF:
CASH CONTROL:
PROTECTION OF HOTEL FUNDS:
CREDIT CONTROL DURING STAY OF A GUEST:
A credit limit is set for the guest depending on his credit profile and then in turn must be
marked on his folios. The front office must monitor guest and non-guest accounts to ensure
they remain within acceptable credit limits. Typically, a line of credit is set for guests who
establish charge privileges during the reservations or registration process. Guests who
present an acceptable credit card at registration may be extended a line of credit equal to
the floor limit {credit limit set by the issuing credit card company}. Guest and non-guest
accounts with other approved credit arrangements are subject to limitations established by
the front office. These internal credit restrictions are called house limits.

Front office management may need to be notified when a front office account approaches the
house limit. Such accounts are called high risk or high balance accounts. The front office
auditor, or night auditor, is primarily responsible for identifying accounts which have reached
or exceeded predetermined credit limits. Front office management may request the guest to
make a partial payment to reduce the outstanding account balance.

CREDIT CONTROL AFTER DEPARTURE OF GUEST:


Hotels must ensure that the guests who are given credit facility from the hotel are able to
pay their bill in full within the scheduled period of time and only then the hotel should fix a
house limit. Usually the hotel’s credit policy allows credit to:

Guaranteed payment reservation guests


Company guarantee payment guests
Credit card guarantee guests
Deposit/advance payment reservation guests
PROBLEMS IN CREDIT CONTROL MAY ARISE IF:
Guest is not explained clearly as to which credit cards/foreign currencies are accepted by the

Find latest hospitality resources at hmhub

|1
Control of Cash & Credit

hotel.
The guest is not informed that if his bill exceeds the house limit he will have to pay the
balance in cash
Communication gap between accounts department and cashier or night auditor and cashier
Negligence by the staff to look at the black list
CASH CONTROL:
All cash must be kept under lock and key and under the supervision of the cashier.
The cash bank/float given to the cashier is also controlled and a check is kept on the same
The cashier should take proper precautions when dealing with foreign currency
Whenever the guest pays in cash the cashier has to make a cash receipt and hand it over to
the guest.
The cash collected everyday should be sent to the bank for deposit.
Cash control is important from the point of view of hotel as credit sales are usually
discouraged.

PROTECTION OF HOTEL FUNDS:


Cashiers should make frequent money drops to have minimum cash in hand.
Cash drawers should be accessible to only one cashier at a time and should be kept closed
when not in use.
Alarm systems should be installed in all areas of the hotel where cash transactions take
place.
A consistent system for handling bank deposits and money pickup should be developed and
followed.
Staff handling money like the cashier, security etc should be appointed only after strict
scrutiny and cross checking with their previous employers. They should be rotated from time
to time and a new combination of staff should be used.
They must also be trained to react in emergency situations.

Find latest hospitality resources at hmhub

|2

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy