Checking Bank Accounts
Purpose of Checking Bank Accounts:
Checking bank accounts is an essential task for any hotel’s finance team. It is important to ensure that all transactions have been accurately recorded, and that there are no discrepancies between the bank statement and the hotel’s records.
To begin the process, the finance team should first obtain bank statements from all of the hotel’s accounts. These statements should be carefully reviewed to ensure that all transactions are legitimate and have been properly recorded in the hotel’s accounting system. Any discrepancies or errors should be investigated and corrected promptly.
In addition to reviewing bank statements, the finance team should also reconcile the accounts on a regular basis. This involves matching the transactions recorded in the accounting system with those on the bank statement and making any necessary adjustments. Reconciliation helps to identify any errors or fraudulent activity, and ensures that the hotel’s financial records are accurate and up-to-date.
Overall, checking bank accounts is a crucial part of maintaining a hotel’s financial health. By ensuring that all transactions are properly recorded and accounted for, the finance team can help to prevent fraud, identify potential issues, and keep the hotel’s finances on track.
All bank accounts must be set up as per the Management Agreement. It is the responsibility of the Financial Controller and General Manager to ensure that the resolutions are up to date with current signatures and that all bank accounts are reconciled in the following month.
Checking Bank Accounts SOP Procedures:
The Operating Account disbursements (checks, wire transfers, or other banking transactions) will be based on the following guidelines:
A. All disbursements are to comply with the Accounts Payable Policy, Invoice and Check Processing.
B. Whenever possible, the checks should not be prepared and signed by the same person.
C. A daily running balance is to be maintained. Checks should never be prepared if it will create a negative balance. Checks are not to be prepared and held until funds are available.
The signatories on the Operating Account will be two (2) of the following:
- Vice President of Finance
- Regional Controller
- General Manager
2. One (1) signature on the Manager Account is acceptable with the following guidelines:
A. Account is imprest at an amount approved by the Hotel Management.
B. Account is reimbursed weekly.
Approved signatories are one of the following:
- General Manager
3. Travel Agent Accounts should be set up for only those properties where the franchiser does not have centralized travel agent payments. One signature is acceptable with the following guidelines:
A. Checks may not be prepared and signed by the same individual.
B. Authorized signatories are one of the following:
- General Manager
4. Capital Accounts will be set up at the Owner’s request to control the purchase of capital or construction. The same guidelines apply to the Operating Account.
5. Bank Resolutions should be set up as: “Corporate Name d/b/a Property Name”. Checks should have the name of the property imprinted and the property address.
Training Summary Questions:
Q1. What is the purpose of the Checking Bank Accounts SOP?
Q2. Explain the process for Operating Account disbursements.
Q3. Who are the valid signatories on the Operating Account?
Q4. Can the cheques be prepared and signed by the same individual?
SOP Number: Finance and Accounting SOP – 09 Department: Cash Control Date Issued: 28-Jun-2021 Time to Train: 25 Minutes