Should You Outsource Your Hotel Accounting?
By David Lund Hospitality & Leadership Expert, The Hotel Financial Coach | August 06, 2017
Outsourcing your hotel accounting is an unintelligent move, that is my opinion and I am going to make my case right here. When I refer to outsourcing, I am talking about a third party provider, not a centralized function.
Any good decision comes down to more pros than cons.
I often work with clients on decisions and we often make two lists. Good things that can come from a decision and how we can amplify them, then the bad things that could and would happen and how we can minimize them. Here goes my list on outsourcing your hotel accounting. Rather than two lists I will alternate between pro and con.
One good thing that comes from outsourcing is being trendy. Many brands are doing it and it is the trendy thing to do. I spoke with a CFO recently and he explained that the board had decided on outsourcing.
"Why would they do that?" I asked. He smiled a little and said, "We need to keep up with our competition, other brands are outsourcing so we are going to as well." Inside his smile I detected a slight amount of political discouragement. My take on this exchange: It is a political thing and the CFO was going to pick his battles. This was not going to be one of them. Why should he care? His company does not own the hotels; they simply manage them for someone else. He knows ultimately if there is a service problem it falls on the hotel's lap, not the management company's problem really.
In business, especially one that has multiple stakeholders, the pressure to keep up with the Jones's is stiff. Companies feel compelled to move, to innovate, and sometimes these changes are not in their best interest. There is a quote that speaks very nicely to this, "If you enter a market and don't know what to do, watch what everyone else is doing, and then do the opposite. The majority is almost always wrong. " ~ Earl Nightingale