CONTACT INFORMATION:

Manhattan Location

225 W35th St, 5th FL New York, NY 10001
Phone: (212) 736-0055

Stamford Location

350 Bedford St, Ste 303 Stamford, CT 06902

Phone: (203) 356-1061

Long Island Location

487 Jericho Turnpike, Syosset, NY 11791

Phone: (212) 736-0055

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Accounting for Hospitality Services

ACCOUNTING AND aDVISORY SERVICES FOR HOSPITALITY

P&N’s accounting services for the hospitality industry encompasses a wide range of fields that cater to the needs of travelers, tourists, and guests.  It includes businesses that provide essential services related to travel, accommodation, food and entertainment. 


Whether you run a cozy bed and breakfast or bustling restaurant and bar, P&N understands the unique financial challenges you face.  Our team of expert accountants assist our clients in maintaining accurate records, optimizing financial performance and ensuring tax compliance with industry standards. 

We are proud to be a leader in THE HOSPITALITY SPACE. empower your FINANCIAL success with tailored strategies, expert insights, and personalized guidance.

TAX CONSIDERATIONS FOR LODGING

  • Accrual Basis Accounting: Most hotels follow the accrual basis of accounting. This method recognizes revenue when earned and expenses when incurred, regardless of cash transactions. It provides a more accurate picture of financial performance.


  • Uniform System of Accounts for the Lodging Industry (USALI): P&N adheres to the USALI guidelines, which standardize financial classifications and industry language. This allows for easy comparison of accounting reports among different hotels.


  • Industry-Specific Metrics: P&N evaluates key performance indicators (KPIs) specific to the hospitality industry. These include revenue per available room (RevPAR), gross operating profit per available room (GOPPAR), occupancy rates, and food and beverage cost ratios. These metrics are essential for managing hotel operations effectively.

TAX CONSIDERATIONS FOR FOOD AND BEVERAGE

  • Sales Tax Compliance: Managing sales tax collection and remittance is key for food and beverage sales. Hospitality establishments must accurately calculate and collect sales tax on the items they sell. Compliance with local and state regulations ensures that the correct amount of tax is remitted to the appropriate authorities.



  • Cost of Goods Sold (COGS): Properly accounting for food and beverage costs is essential. COGS includes expenses directly related to producing or purchasing the goods sold, such as ingredients, packaging, and labor. Accurate tracking of COGS helps determine profitability and informs pricing decisions.


  • Employee Meals and Discounts: Hospitality businesses often provide meals or discounts to their employees. Understanding the tax implications of these benefits is essential. Some employee meals may be tax-deductible, while others may be subject to specific rules and limitations. Proper documentation and compliance with tax laws are essential to avoid any issues during audits or assessments.

TAX CONSIDERATIONS FOR TRAVEL AND TOURISM

Airline and Cruise Taxes: Navigating specific taxes related to transportation services is vital for airlines and cruise lines. These taxes may include fuel taxes, passenger facility charges, and international departure taxes. Airlines and cruise operators must accurately calculate and remit these taxes to the relevant authorities.

Tourist Tax: Compliance with local tourist taxes imposed on accommodations is essential. Many destinations levy a tourist tax or transient occupancy tax on hotel stays. Hotels and other lodging providers collect this tax from guests and remit it to local governments.


Travel Agency Commissions: Travel agencies earn commissions from booking flights, hotels, and other travel services. Managing these commissions involves accounting for them as income and ensuring proper documentation for tax purposes.

TAX CONSIDERATIONS FOR RECREATION

  • Entertainment Expenses: When it comes to recreational facilities, understanding which expenses are deductible is all-important. Generally, expenses directly related to providing entertainment for customers or clients can be deductible. This might include costs for organizing events, maintaining recreational equipment, or hosting activities within your facility.
  • Depreciation for Equipment and Facilities: Properly depreciating assets used in recreational activities is essential. Depreciation allows you to spread the cost of equipment (such as gym machines, sports gear, or pool facilities) over their useful life. By following depreciation guidelines, you can accurately reflect the wear and tear of these assets and allocate their costs appropriately over time.

Empower Your business: Book a Consultation Now!

Embark on a transformative financial journey by scheduling a consultation with Presti & Naegele. Our experts are ready to empower your financial success with tailored strategies, expert insights, and personalized guidance. Book a consultation now to unlock the full potential of your financial future. Your prosperity starts with a conversation.

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Presti & Naegele Accounting Offices

For inquiries or guidance, contact Presti & Naegele Accounting and Advisories. Your success awaits!

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Brian and P&N's professional, personable and prompt team makes accounting and tax matters fun and streamlined. They've been helping me and my staff with personal and business tax filings for more than 5 years. A+

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