Hotel Accounting Software: Finance & GST Guide

Hotel Accounting Software

Manage Finances & Stay GST Compliant

Software for accounts payable, receivables, GST filing, payroll, and financial reporting. Most Indian hotels use Tally with PMS integration or specialized hotel accounting modules.

What Hotel Accounting Covers

Function Description
Accounts Receivable Track money owed by guests, corporates, OTAs
Accounts Payable Manage vendor payments, due dates
General Ledger Chart of accounts, journal entries
GST Management Input/output tax, GSTR filing
Bank Reconciliation Match bank statements with books
Financial Reporting P&L, Balance Sheet, Cash Flow
Payroll Salary processing, PF, ESI

PMS to Accounting Integration

Key data that flows from PMS to accounting:

  • Daily revenue: Room, F&B, other department revenue
  • City ledger transfers: Corporate accounts, travel agent dues
  • Advance deposits: Guest prepayments
  • Tax collected: GST on rooms and services
  • Payment receipts: Cash, card, UPI collections
  • OTA receivables: Amounts due from OTAs
Integration is Critical: Without PMS-accounting integration, accountants manually enter data = errors, delays, reconciliation nightmares. With integration = automatic posting, accurate records.

Popular Options in India

Software Best For PMS Integration
Tally Prime Most hotels (industry standard) Via export/import, some API
Busy Accounting Budget alternative to Tally Limited
Zoho Books Cloud-first hotels API available
IDS Accounts Large hotels on IDS Native integration
eZee Accounts eZee ecosystem Native with eZee

GST Compliance for Hotels

Key GST requirements your accounting software must handle:

  • Multiple GST rates: 12% (rooms ≤₹7,500), 18% (rooms >₹7,500), 5%/18% F&B
  • HSN/SAC codes: 9963 for accommodation services
  • Input Tax Credit: Track eligible ITC on purchases
  • GSTR-1: Outward supplies (sales) reporting
  • GSTR-3B: Summary return with tax payment
  • E-invoicing: For turnover above threshold
  • TDS/TCS: Track deductions from OTA payments

Tally for Hotels

Most Indian hotels use Tally Prime. Here's how to set it up for hotels:

  1. Create hotel-specific ledgers: Room revenue, F&B revenue, other income
  2. Set up cost centers: By department (rooms, F&B, spa, etc.)
  3. Configure GST: Multiple tax rates, HSN codes
  4. City ledger groups: Corporate accounts, travel agents, OTAs
  5. Bank accounts: Separate for operations, OTA receipts
  6. Recurring entries: Rent, insurance, EMIs
Pro Tip: Many PMS vendors offer Tally integration modules. Ask your PMS provider about automatic daily posting to Tally - saves hours of manual work.

Key Financial Reports

  • Daily Revenue Report: Revenue by department, payment modes
  • Accounts Receivable Aging: Outstanding dues by age
  • Accounts Payable Report: Vendor dues, payment schedule
  • Profit & Loss: Monthly/annual income vs expenses
  • Cash Flow Statement: Money in vs money out
  • GST Summary: Tax collected vs paid, ITC available
  • Bank Reconciliation: Books vs bank statement

Choosing Accounting Software

  1. PMS integration: Can it connect with your hotel PMS?
  2. GST compliance: All India GST requirements supported?
  3. Multi-location: If you have multiple properties
  4. Audit trail: Track all changes for compliance
  5. CA familiarity: Will your accountant/CA know how to use it?
  6. Support: Local support in your language