What is an Accrual?
Your team’s goal each month is to get the Income Statement to be a true reflection of how the hotel performed that month so that you can evaluate that performance and make quick decisions on how to improve for the following months. One of the biggest tools for accomplishing this is with end of month accruals! An end of month accrual is an accounting entry used to record an expense you had for the month when you haven’t actually received the invoice or paid for it yet. For ins