Hotel Night Audit / End Of Day Process – Hotels | Resorts

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Night Audit / End of Day Process in Hotels

The hotel night audit is a crucial process that takes place at the end of each day. This process is essential to ensure that all financial records and data are accurate and up-to-date. The night audit involves a series of tasks that need to be completed, including balancing the day’s transactions, verifying room rates, and reconciling payments.

During the night audit, the front desk team will close out all open accounts and ensure that all charges have been posted accurately. They will also verify that all room rates have been charged correctly and that any discounts or promotions have been applied as intended. Additionally, the night audit team will reconcile all payments made by guests, including cash, credit cards, and other payment methods.

Once all transactions have been reconciled, the night audit team will generate various reports, including the daily revenue report, occupancy report, and other financial reports that management may require. These reports provide essential information for the hotel’s management team to make informed decisions about the hotel’s operations.

The Front Office Audit is usually referred to as a Night Audit because hotels generally perform it during the late evening hours. Before the implementation of automated front office systems, The most convenient time to perform the audit was during the late evening and early morning hours, This helps the front office personnel to work with minimal interruption, and most of the hotel outlets and revenue centres are closed during this time.

The audit is a daily review of guest account transactions recorded against revenue centre transactions. The routine helps guarantee the accuracy, reliability, and thoroughness of front-office accounting.

Hotel Night audit is generally comprised of the below functions:

Night Shift Commencement:

  • Taking the shift handover from the evening shift.
  •  Counting and tallying the cash float.
  •  Printing essential Shift reports.
  •  Opening the Night Audit Cashier.
  •  Reading the Log book and also listing down any pending tasks/follow-ups from the evening shifts.
  •  Look for any uncleared traces for the day and take necessary actions.

Balance Food And Beverage outlets:

  • The Outlets will close their day, hand over the Check copy, and drop the cash collection at the front desk.
  •  Print the Outlet sale report from the Front office software ( PMS) and tally / balance the revenues with a similar report from the Point of Sale ( POS ) software. This will ensure that all revenues generated at the POS have been captured by the PMS.
  •  If there are any missing checks then the same has to be posted manually, Likewise, any duplicate postings have to be voided.
  •  Tally the cash posting in PMS and print the cash receipt for the dropping done by the restaurant team.
  •  Check if there is any Tips for the restaurant staff on credit card, Hand over the same after making the corresponding paidout entry on the system.
  •  Once all restaurants had dropped their cash check out of the Payment Master room ( PM ) for Cash, Credit Card, and City Ledger. ( Eg: 9001, 9010, 9015 etc.)
  •  Check the lost posting PM to see if there is any lost interface posting lying on the folio. 
  •  Check out the Lost posting PM room after taking any corrective / allowance.

Audit and keep things ready for the End of the Day:

  • Keep the duplicate copies of restaurant checks sorted according to the floor number / Room number and place them in the respective room folders/slots.
  •  Print the Payment made today by all Methods of Payment ( Cash, Credit card, Bill to Company, etc. ) and tally the same with the corresponding payment for the day.
  •  Take out all Invoices generated for the day and Tick mark net to the amount on the ‘Payment report’ for the day to indicate that the payment type and the amount appearing on the folio is matching with the amount and type on the report.
  •  Reconcile all bills to company settlement for the day and make sure that the corresponding billing letter and copy of the restaurant checks are attached to the same.

Print Reports for all interfaces from PMS:

  • Posting report for Telephone postings.
  •  Posting report for Internet postings.
  •  Posting report for In Room Movie rentals.
  •  Refer to the server report for all the above interfaces and tally the revenue with those posted on the PMS.
  •  Circle the last transaction to verify and also to ensure that the last charges were posted in the evening and not stopped sometime during the day.
  •  Reconcile all posting these must balance guest accounts.
  •  Sign all the posting reports.

Log all Vacant Rooms, and resolve room status and discrepancies.

Count the key in the slot ( For hotels using Manual Metal keys )

Check the Rate check report / Rate variance report:

  • Make sure that the correct room rate is entered into the reservations.
  •  Any Zero rate rooms to be investigated and identified for Sharer, Complementary, House user, or PM rooms.
  •  Investigate all Rate discrepancies.
  •  Check for the correct assignment for Market and source segments to the reservation.
  •  Verify that everything is correct by ticking or highlighting both the rate and the reservation/billing instructions.
  •  Sign off on the report once completed.

Balance Credit Cards:

  • Print the ‘Payment report only Credit Card’ report from PMS.
  •  Perform the Batch closing on all EDC / CCD machines.
  •  Compare the settlements on the Batch close report with the ‘Credit Card’ report printed from PMS.
  •  Place a tick next to the amount of the report to indicate that the paperwork is in order and complete.
  •  Do this for ALL payments made today. All paperwork must be filed for the report.
  •  Please ensure the end-of-day credit card terminal docket says the settlement is successful.
  •  Complete the Credit Card Reconciliation Form.
  •  Both PMS and credit cards MUST balance with each other.
  •  Complete settlement on all the credit card terminals – after midnight

Check Pending Arrivals:

  • Check all pending arrivals left.
  •  Show check-in for those rooms that have been prepaid or have a guaranteed payment from an agent or Company.
  •  All non-arrivals that have not been prepaid need to be processed as a no-show during EOD.

Check Pending departures:

  • Review pending departures.
  •  If there are any departures left cross check the same with the bell boy errand card for departures to make sure that the room has departed. And show checkout for the same on the system.

Balance Cash:

  • Retrieve the Payments as of now sorted by MOP printed earlier
  •  Verify all cash drops
  •  Balance any paid-outs from the same or previous days
  •  Prepare deposit slip and express banking bag for net cash and cheques

Cash Register closure:

  • Cash Register / Cash register closure. You must ensure all cash registers are closed (the only way to do this is to ensure you have all the cash register closure reports).
  •  You must ensure that there are no outstanding departures/arrivals (including group masters).
  •  Print Shift Reports before closure.
  •  Ensure that all postings are accounted for.
  •  Close Cash Register.
  •  Sign on the report printed while closing the cash register.

Pre End Of Day Final Check:

  • ALL Cash registers are CLOSED (reopen and close all registers to ensure they are closed)
  •  There are NO departures still to depart.
  •  There are NO non-guaranteed arrivals still to arrive (including group masters). 
  •  Check if there is a printer connected with enough paper loaded onto the computer you are running the EOD on.
  •  Log out all computers except the one on which the EOD will be performed.
  •  Inform all outlets not to settle any checks till the time the EOD is completed.

Start End of Day / Night Audit Process on the Front Office software.

After the EOD Process is completed:

  • Print newspaper reports and complete daily newspaper order forms. 
  •  Hand over the Newspaper report to the Bell Desk team.
  •  Report set to be printed for General Manager and all HOD’s.
  •  Re check-in all PM rooms for the POS postings ( Cash, Credit Card, City Ledger, Lost posting )
Overall, the night audit is a critical process that ensures the hotel's financial records are accurate and up-to-date. This process helps the hotel to maintain its reputation and ensure guests have a positive experience during their stay.
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