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.
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Accounting is recognized as a technical information system which is designed to communicate the right fiscal information to the internal as well as external users. Any professionally operated business house in travel business accounting is one of the key departments since it not only gives the indications as profitability but will also provide data for making right decisions. Today accounting for travel agents is a must as it records, and summarizes the incomes and payments plus gives the correct picture of Travel agents financial well being.
It is essential for travel agents for making strategic planning for future growth and expansion. Accounting basically is keeping records of every little to large operations, transactions, customer statistics etc it is the insights of the business. A travel agent has to maintain accounting for its income from sales proceeds, be it inbounds travel or out bound travel and will also have to maintain its payments to various service providers, for accommodation, transport, guiding services etc. A travel house can achieve efficient accounting process by either manual book keeping or use of technology and use accounting software.
In the manual book keeping system of accounting a travel agency have to maintain at least a sale book, cash and bank book, debtor’s ledger and creditor’s ledger. There are number of accounting software available in the market for travel agency accounting. Most of this software is travel ticketing software, central reservation systems, inventory control systems or CRM. Mostly travel agencies pick up CRM systems with built in basic accounting features which in most of the cases do not suffice. Some of travel B2B houses have come up with their systems brings together the travel agents and other travel service providers, but have nothing to do with accounting. Hence, a travel agent has to choose wisely to see the accounting features and the check out the CRM side of the software.
Read full article at: https://www.tourgenie.com/travel-diaries/travel-blogs/accounting-for-travel-agents