Advancing the Success of Hotels

In an environment where what you do is constantly changing to meet guest expectations let along keep up with new alternative forms of lodging, you have to stay ahead of the curve. Whether that be your architectural design, your client service philosophy or your use of local ingredients in your restaurant, there is a lot that goes into creating your guest experiences … all designed to drive profits. Succeeding in the hotel industry takes more than theory. You need real-world knowledge and specialized skills that give you an edge in your niche.

At PBMares, we don’t just say we have experience in hospitality. We demonstrate it. As members of the Hospitality Financial and Technical Professionals (HFTP) and the American Hotel and Lodging Association, we deliver regular continuing education seminars and webinars on topics ranging from cybersecurity and labor issues to accounting updates and hotel policies.

SOLVING BUSINESS ISSUES

“Newport Hospitality Group’s long term relationship with PBMares stems from the valuable advice on tax strategies they provide to our growing business. Our owners have come to rely on PBMares for their depth of knowledge in many specific areas of accounting, tax and consulting services pertinent to the needs of Newport Hospitality Group.”
Nancy Nunn, Chief Financial Officer, NEWPORT HOSPITALITY GROUP

PBMares promises a hands-on partnership that allows you to spend more time managing your hotel—successfully.

Hotels, motels, bed & breakfasts and resorts across the nation and around the globe count on PBMares for unsurpassed customer service along with best-in-class support, including:

Audit & Assurance

Unlike other businesses, hotel accounting methods must consider the impact of guest room rates, late charges and online vendors, in addition to managing revenue and expenses. Working with a CPA who is familiar with hotel accounting books and records is a necessity to ensure data is captured properly. Beyond current financial performance, hotels are always looking to the future; in few other industries is forecasting more important. The quality of your hotel’s accounting and auditing matters and we can help with:

  • Annual and period-end financial statement audits, reviews, and compilations
  • Monthly financial reporting and analysis
  • Accounting and procedure manuals
  • Yellow Book audits for government-run hotels
  • Benchmarking and KPIs
  • Staff training
  • Evaluating accounting software

Benefit plans give your employees valuable perks, whether it’s saving for retirement, affordable options for healthcare or access to insurance coverage. As a hotel, you also receive benefits in the way of tax breaks, not to mention the morale of your staff when they know they’re being taken care of. Take care of the plans that take care of your employees and entrust the audit of your plan to the experts at PBMares. When the number of participants in your benefit plan reaches a certain threshold, you need an audit to ensure the plan is operating in accordance with fiduciary standards. If benefit plan audits aren’t your day job – and they rarely are for hotels – let PBMares help. Contact us for:

  • Initial plan audits
  • Multi-plan audits
  • Defined benefit plan audits
  • Defined compensation plan audits
  • Representation before the DOL and IRS

One of the most common areas of fraud is payroll fraud. If one person is responsible for writing, signing and distributing payroll checks, under the right (or wrong!) circumstances, there is an opportunity for fraud. Hotels turn to PBMares for payroll audits, in which we assist handing out paychecks on-site. The goal is to ensure there are no ghost employees and payroll records are current.
Consulting

The hospitality industry has changed. One of the largest travel companies, Airbnb, doesn’t own a single property. Consumers expect a highly personalized experience, regardless of their budget, and technology continues to redefine travel and leisure. For a hotel to stay competitive and profitable, it must have an eye to the future and the know-how to get there. PBMares adds value to a wide range of business consulting areas, including:

  • Cost accounting
  • Feasibility studies
  • Forecasting and revenue projections
  • Strategic planning
  • Financing and sourcing capital

Hotels have a staggering amount of information on their guests: personal contact information and credit cards, not to mention the hotel’s own financial records. Considering there are also numerous people who have access to reservation and payment data within the hotel, it’s imperative that hotels take proactive steps to safeguard against cyber-attacks and fraud. PBMares’ Hospitality Team can help your hotel implement the following cybersecurity measures:

  • Intrusion testing
  • Information security audit
  • IT strategic planning
  • Disaster recovery
  • Infrastructure assessment
  • Risk assessment, including firewall security, password security, and testing for vulnerabilities in phishing
  • Staff training and education

One of the biggest challenges facing hotels is sustaining growth. The industry is expected to grow as consumer confidence remains strong. Will your hotel lead the growth curve or trail behind? Strategic mergers and acquisitions can help a hotel achieve greater market share, enter new areas, compete on a bigger scale and experience growth. The key is to approach transactions the right way. Contact us for assistance with:

  • Deal structuring
  • Due diligence
  • Negotiation assistance
  • Post-transaction support
  • Tax strategies

When it comes to employee benefits, you want to offer retirement and other benefits programs to your employees to stay competitive, attract top talent and keep your star performers happy. How do you know what benefit plan option is right for your hotel? Even more importantly, how do you manage the plan’s investments so your employees see real value? PBMares offers Third Party Administration services to help hotels design and administer a range of benefit plans. We offer third party administration services for:

  • Defined compensation and defined benefit plans
  • Health and welfare plans
  • Employee Stock Ownership Plans (ESOPs)
  • Form 5500 filing
  • IRS and DOL audit preparation

What internal controls does your hotel have in place to prevent employee theft and fraud and ensure smooth operations from the front desk to food and beverage? Although it’s common for hotels to be understaffed in the accounting department, that doesn’t mean you can’t be proactive about internal controls. Small changes, like installing cameras in food and beverage receiving areas and employee usage of clear plastic bags, can go a long way. Let our Hospitality Team help you combat theft and fraud through:

  • Internal control studies and best practices
  • Cash management policies
  • On-site and field testing
  • Fraud detection
  • Staff training and education
Tax

Hotel structure matters from a business standpoint and taxation rules. There is a wide range of tax planning that can support management decisions on asset allocation, ownership structure and operations. At PBMares, we view tax planning as integral to long-term business planning. Contact us for skilled guidance on the following hotel taxation issues:

HOSPITALITY INSIGHTS

MEET YOUR TEAM LEADER



R. Todd Swisher, CPA

Partner, Hospitality Team Leader

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Contact us to see the difference experienced hotel specialists can make for your hotel.