Choosing the perfect accounting and financial reporting software for your company is a crucial decision that can have a significant impact on your financial management and efficiency now and in the future. When looking at establishing, maintaining, and scaling your company, it is imperative to find and adopt the best hospitality accounting software to fulfill all your unique needs. Having a hospitality-specific solution is ideal to ensure you have the ability to accurately monitor income and expenses, produce and customize financial reports, and manage revenue from a hotelier’s perspective. You also need to consider the best accounting solution suited to the number of properties you currently have in your portfolio, as well as software that can scale with you as you grow. In the grand scheme of things, there is a lot to consider as you do your due diligence, but it doesn’t have to be stressful when following this process.
The Process
1. Assess and Identify Your Business Needs
Start by evaluating your business’ specific accounting needs. This comprehensive evaluation should encompass the intricacy of your financial transactions, the volume of users necessitating access, and any industry-specific demands, such as automated input of Property Management System (PMS) data, ePay options, ability to comply with USALI formats, payroll processing, or multi-currency support.
2. Create a List of Key Features
Begin by crafting a checklist of essential features you require in accounting software. Common features include bookkeeping, workflow and invoice management, meticulous expense tracking, robust financial reporting capabilities with customizable options, seamless bank reconciliation, efficient accounts payable and receivable functionalities, and streamlined tax preparation tools.
Consider what you currently lack and what you see as the most beneficial features to help you streamline your processes. Tailor your feature requirements to align precisely with your business objectives and aspirations. This will save you time and money.
3. Consider Integrations
Assess whether you need your accounting software to integrate with other critical business applications you employ, such as PMS and POS (Point of Sale), payroll, or e-commerce platforms. Recognize that integration can significantly enhance efficiency and reduce errors by streamlining data transfer and minimizing the need for manual data entry. Some of the most common questions asked during this process include:
- Integration Compatibility: Which PMS/POS systems are compatible with the accounting software, and does that integration already exist?
- Integration Flexibility: Is the software versatile enough to integrate with various systems, or is it limited to specific integrations?
- Add-Ons Availability: Does the accounting software offer supplementary labor management, business intelligence, budgeting and forecasting, and other add-ons or modules to further enhance functionality?
- Automation Features: Are there automation components within the system, particularly for functions like Accounts Payable (AP) workflow and Bank Reconciliation?
4. Ask Experts in the Industry
When exploring potential solutions, the challenge often lies in determining the initial point of your search. One highly effective method for discerning the efficacy and utility of various accounting solutions is to seek advice from your peers and other reputable industry experts. While you might have encountered mentions of recommended accounting software, the most prudent course of action is to solicit feedback from individuals you trust. Discover firsthand insights into the platform’s reliability, as well as its most frequently utilized and highly regarded features. Reach out to your trusted contacts and inquire about their recommendations, reminding them of your specific requirements.
5. Research Available Options
Conduct comprehensive research to identify accounting software options that align with your unique requirements. Leverage online resources to search for top-tier accounting solutions and compare the best ones against each other to find which one is best suited for your company. Additionally, consider researching award-winning accounting software options, such as those recognized on HotelTechReport. This not only provides product rankings but also grants you access to valuable insights through customer reviews, offering a well-rounded perspective to aid your decision-making process.
6. Define Your Budget
Establish the precise financial commitment you’re prepared to allocate to accounting software. Deliberate not only the initial expenditures but also the recurring subscription fees or licensing fees, along with any supplementary costs associated with training and support. It’s vital to set a budget that aligns with your expectations and is within reasonable limits. Remember, your objective is to identify the optimal solution for your company, prioritizing suitability over mere convenience. It is critical to understand the pricing you’re given to ensure you can support all users within your organization and there are no hidden fees.
7. Compare Software Options
Construct a spreadsheet for the purpose of comparing various accounting software alternatives. Incorporate essential criteria, such as cost, feature set, user feedback, scalability, and the quality of customer support. Examine the user-friendliness of each software by conducting hands-on assessments and product demonstrations. Ask about the availability of educational resources post-implementation to ensure that you get the most out of the solution.
During this critical phase, it is advisable to pose some fundamental inquiries, including:
- Analytical Capabilities: Can the software provide the requisite analytics, such as CPOR (Cost per Occupied Room), RevPAR (Revenue per Available Room), and GOPPAR (Gross Operating Profit per Available Room), to meet your specific needs?
- Training Resources: What types of training resources are available for users? Are there comprehensive training materials or courses provided?
- In-App Support: Does the software offer in-app assistance or support features to aid users in real time?
8. Request Demos and Trials
Reach out to software providers to request personalized demonstrations or trial versions. This hands-on experience will provide a valuable understanding of the software’s functionality and its alignment with your specific requirements. During these demonstrations, come prepared with a set of targeted questions concerning the pivotal features that are paramount for your company’s operations and any essential information you might require. If your business operates in a regulated industry or has specific compliance requirements (e.g., GAAP (Generally Accepted Accounting Principles), IFRS (International Financial Reporting Standards), tax regulations), verify that the software can meet these standards. Some common questions asked include:
- User Capacity: What is the platform’s user capacity, and can it accommodate the number of users we require? If yes, do you have to pay for each user?
- Technical Support: Please elaborate on the technical support services offered by the software vendor. This includes factors like response times, availability, and the quality of support resources provided.
- Ownership Structure: Are you a privately owned or publicly owned company? Understanding the ownership structure can provide insights into the software provider’s stability and corporate governance.
- References and Portfolio: Can they provide references from clients with a similar portfolio or requirements to yours? This can offer valuable context about the software’s applicability to your specific needs.
- Custom Reporting: Is it possible to create custom reports with the software to tailor your reporting to unique business requirements or the demands of your owners and investors?
- Historical Data Migration: Can historical data be imported into the software, ensuring a seamless transition from your existing systems?
- Training Resources: What types of training options are available for users, and how can you access them?
- Multi-Property and Multi-Currency Support: Can the software effectively handle multiple properties of different entity types, such as restaurants, golf courses, marinas, equity entities, and currencies (if applicable), accommodating your diverse operational needs?
9. Consider Scalability and Your Team
Contemplate the trajectory of your company’s future growth and select software that can grow with your business and handle increased transaction volumes and users demands. Engage your accounting team and any other relevant stakeholders in the decision-making process. Collect and assess their valuable feedback and insights to guarantee that the software harmonizes with their distinct needs. The hospitality industry is very transient. Ask your team members if they have used systems elsewhere that may meet your needs.
Keep in mind that there are software solutions tailored to facilitate scalability as your enterprise evolves. Therefore, it is essential to proactively seek out a sustainable, long-term solution that can provide steadfast support throughout your ongoing growth journey.
10. Review Pricing Structure
Carefully examine the pricing structure of the software, leaving no room for any unforeseen costs, such as add-ons or data storage fees. While assessing the price, make sure to inquire about how many users have access to the software. There may be additional fees when adding new users or the platform could offer unlimited users. In addition, inquire about any supplementary cost if you were to also add on additional services, such as labor management, budget and analytical insights, or outsourced accounting.
11. Make Your Decision
Following thorough research and consideration, select the accounting software that most closely aligns with your business requirements, financial constraints, and overarching long-term objectives. Once you’ve chosen a software solution, plan the implementation process. Facilitate comprehensive training for your staff, ensuring they acquire the necessary skills to proficiently employ the software. Additionally, strategize a seamless transition from your previous system, if applicable, to guarantee minimal disruption during the integration of the new solution.
Monitor, Adjust, and Enjoy
Once you have chosen your accounting solution, commit to a continuous learning process to harness the full spectrum of benefits and features it offers to drive your business toward success. Continuously monitor the performance of your chosen accounting software and be prepared to adjust if necessary. Your business needs may evolve over time, so ensure the software remains a good fit over time. Choosing accounting software is crucial for your company. It is imperative to conduct thorough research, explore the array of enhanced features available, and diligently seek out a software solution that impeccably fulfills all the unique demands of your hotelier operations.
About M3
Built by hoteliers exclusively for hoteliersTM, M3 is a robust cloud-based financial platform and services company serving over 8,000 properties across North America’s hospitality industry helping drive cost savings, revenue enhancement, and business insight. After almost 25 years in business, M3 touts a 95 percent customer retention rate. Used by over 1,000 management groups and owner-operators and hotels of all sizes, the platform works seamlessly with other key systems and tools in the hospitality industry. It offers robust accounting and financial analysis across entire portfolios with optional operations and time management features. M3’s Professional Services team provides on-demand accounting and bookkeeping support for hotels and portfolios of any size by offering a full range of customized accounting solutions that can scale with a hotelier’s needs. Privately held and employee-owned, M3 continues to constantly enhance products and services with regular releases and updates. “M3”, “CoreSelect”, “M3 Concierge”, and “Accounting Core” are all trademarks owned by M3; all other marks are owned by their respective owners. For more information, visit www.m3as.com.
Haley Wolf
Marketing and Public Relations Manager
+1 770 533 0545
M3
