{"id":6065,"date":"2022-03-05T08:51:41","date_gmt":"2022-03-05T08:51:41","guid":{"rendered":"https:\/\/ihmnotessite.com\/?page_id=6065"},"modified":"2022-03-05T09:07:00","modified_gmt":"2022-03-05T09:07:00","slug":"cash-credit-control","status":"publish","type":"page","link":"https:\/\/ihmnotessite.com\/index.php\/home\/hmct-notes\/bhmct-4th-year\/front-office-management\/cash-credit-control\/","title":{"rendered":"CASH & CREDIT CONTROL"},"content":{"rendered":"\t\t
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Any hotel business will have to deal with cash and credit transactions, both of which are risky. It’s critical to create and apply some effective management methods so that the risk is decreased or eliminated entirely, and the hotel can continue to run profitably.<\/span><\/p>

In general, <\/span>control c<\/span>an be managed thus:<\/span><\/span><\/p>

1. Organisation: <\/span>the <\/span>organisation charts <\/span>devised and circulated by the management give a clear <\/span>picture to employees about the various levels of operation in the organisation. They help in <\/span>knowing and understanding the reporting patterns and the responsibilities of each employee, <\/span>whichever level <\/span>they are placed at.<\/span><\/span><\/p>

2.<\/span>Responsibilities: job <\/span>descriptions also help as control measures as they clearly inform the staff <\/span>of their responsibilities in a particular job designation. They clarify the limits of their <\/span>responsibilities and the scope of their authority, the staff they report to or supervise, and ensuring <\/span>that there is no overlap of duties and the resulting confusion is avoided.<\/span><\/span><\/p>

3.<\/span>Supervision: good supervision <\/span>results in reduction in mistakes and avoidance of shortcuts often <\/span>taken by employees to reduce time and effort and which results in grave and serious mistakes that <\/span>cost the hotel dearly.<\/span><\/span><\/p>

4.<\/span>Security measures: physical security <\/span>of the premises also helps in avoiding losses to the hotel. <\/span>Safety and security equipment, personnel and procedures need to be carefully planned and <\/span>implemented- safe deposit lockers, key handling, use of cctvs, designing of the public spaces, etc.<\/span><\/span><\/p>

5.<\/span>Procedures:<\/span>all<\/span>procedures<\/span>for handling cash and credit situations should be clear cut and <\/span>communicated to the relevant levels of employees. Comprehension, training and follow up should <\/span>be the main consideration.<\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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CREDIT CONTROL<\/span><\/strong><\/span><\/p>

A guest room is the most <\/span>perishable <\/span>article sold in any type of business. The income from today\u2019s <\/span>vacant room is lost forever. Often a hotel must accept business, whether for a guestroom or a <\/span>banquet even though it may involve a credit risk. Credit limits depend on the operation, the level of <\/span>charges and the type of guest. The increased use of credit, the longer time taken by guests to pay <\/span>their bills and the cash requirements of the operation also contribute to the greater stringency of the <\/span>credit procedures now in effect in most hotels.<\/span><\/span><\/p>

IMPORTANCE OF CREDIT CONTROL\u00a0<\/span><\/strong><\/span><\/p>

Hotels need to have a healthy cash flow in order to survive and succeed and they try to achieve this <\/span>by exercising control over the credit given to guests. To achieve a balance between the needs and <\/span>convenience of the hotel guest (credit facilities) and the needs of the hotel (cash flow), every <\/span>organisation will need to have an effective credit policy in place.<\/span><\/span><\/p>