Accounting means the classification, recording and summarizing information to determine the financial strength and weakness of an agency or any business. Accounting is a major factor in a business that is designed to communicate, record, and pass the correct information to the internal as well as external users and is also recognized as an information system.
It is no doubt an important area in a travel agency business that profitably demands all accurate information, recordings, and preparations of its financial statements. Accounting for travel agents helps in determining the correct and fair status of the travel agency business and also helps in making strategic plans and decisions. If you run a business or are thinking of running a travel agency soon, you must be preparing for some kind of investments to make for your business. It is really important to keep record of every penny you use for starting or running your business to calculate the amount you have spent and the profit you had from it. The basic objective of accounting is to get the information of profit and finance position of your business. To achieve this objective you are required to prepare and keep journals and some statements that include maintaining sales journal, accounting record of cash receipt, account receivable, keeping record of cash disbursement for accounting, the ledger or the chief book of accounting for travel agents. There are certain objectives of travel ledger like the identification of revenue sources of travel agency, determination of total sales, total commission earned, finding total amount owned to travel ledger and evaluation of performances of all travel agencies recognized by travel ledger.
These must also include some other journals like the pay roll journal, where all the records of salaries and other benefits relating to finance are maintained by a travel agency. Also, going digital helps a lot in data collecting, calculation, and safety; hence online travel management software is the answer.