Accounting for Motels & Accommodation

There’s nothing easy about running a motel or bed & breakfast business. We all know that interrupted sleep is a form of torture and dealing with the public can be an eye opener!

Apart from the usual small business compliance issues of GST, BAS, PAYG and superannuation you have to contend with some ‘untidy’ individuals, mini bar disputes, pilferage, room damage, early morning starts plus manage erratic and seasonal trade. If that’s not enough, most moteliers have to cope with casual cleaning staff and they also have to manage security, the kitchen, the garden and play maid and marketing manager.  

From an accounting perspective you ideally want someone who understands your industry because there are a number of complications when running a bed and breakfast business. Claiming the correct percentage of mortgage interest and property expenses is vital as well as the adjustment for private usage of food and utilities.  There are also significant capital gains tax issues to consider when running your business from your principal place of residence.

Since the mid 1990’s, Linda McGowan and her team of accountants have mentored numerous motel owners and bed & breakfast operators through the various stages of their business life cycle, from start up right through to sale of the business.

Thinking of Starting a Bed & Breakfast?

We have earnt a reputation as a business start-up specialist and if you’re looking to open or buy a motel or bed & breakfast you can benefit from our industry experience. Over the years we have helped clients with every aspect of starting their bed & breakfast business including site selection, trading structure, tax registrations, insurances and accounting software selection. In addition, we can also assist you with your business plan, payroll and HR issues plus finance application.  

Our range of spreadsheets and business tools include a comprehensive start up expense checklist to help you identify every possible start up cost. This checklist is broken down into categories including leasehold improvements, IT, marketing, capital equipment, furniture & fittings, professional services, licenses and permits, initial stock and working capital. These figures then automatically feed into an integrated cash flow budget to help you identify your finance requirements and they can also form part of your business plan.

Room pricing is absolutely vital to the success of your business and we can help you do some financial modelling so you know your break even point.  If you run a motel we also compare your business performance against industry benchmarks so you know what is working in your business and what needs working on.

Want to Grow Your Motel Business?

As a business owner we believe you want much more than just tax returns and financial statements. We believe you want to grow your business, your profitability and your personal wealth. For that reason we strive to help you ‘know your numbers’ and that includes understanding the 4 Ways to Grow Your Business. Once you understand the key profit drivers in your motel business we can talk you through profit improvement strategies. Not only that, we can quantify the profit improvement potential in your business.

We do so much more than just tax. We view the tax return as the start of the client process, not the end and as ‘business and profit builders’ we provide strategies and solutions to help you grow the value of the business. Our business advisors offer hoteliers a range of tailored solutions including:

• Start-Up Business Advice for your Bed & Breakfast business or Motel
• Advice regarding the Purchase or Sale of your Motel or B & B
• Spreadsheets and Tools including a Start Up Expense Checklist and Pricing Calculator
• Advice and Establishment of Your Business Structure taking into account issues like Asset Protection, Tax Minimisation and Future Discount Capital Gains Tax Concessions
• Business Registrations including ABN, TFN, GST, WorkCover etc.
• Preparation of Business Plans, Cash Flow Forecasts and Profit Projections
• Accounting Software Selection and Training – Bookkeeping, Invoicing & Payroll
• Site Location and Advice Regarding your Tenancy Lease
• Preparation of Finance Applications & Bank Submissions
• Preparation and Analysis of Financial Statements
• Bookkeeping and Payroll Services
• Costing of Room Rates, Breakfast Menu & Mini Bar Items
• Tax Planning Strategies
• Industry Benchmarking and KPI Management
• Marketing Audit including an evaluation of your branding, website and brochures
• Advice and Assistance with the Development, Content and Website SEO
• Personal Financial Planning & Wealth Creation Strategies
• Business & Risk Insurances
• Vehicle and Equipment Finance (Chattel Mortgage, Lease etc.)
• Monitoring and Controlling Labour costs
• Advice regarding Claiming Motor Vehicle Costs
• Recession and Survival Strategies
• Business Succession Planning

At Linda McGowan Pty Ltd we have a deep understanding of how motels and bed & breakfasts operate. We work with proprietors across the country and tailor our accounting, tax and business consulting services to fit your specific needs. If you are looking to buy or start a motel or b & B contact us today and benefit from our experience.