Accounting Systems for Motels
by RICHARD E. GOFF In-Charge Accountant, Portland Office
Presented before the Oregon Motor Court Association, Bend, Oregon—November 1961
ACCOUNTING is to the businessman what a scorecard is to a golfer
in that it reflects how well he performed this year compared to last year and how he compared with his fellow operators. But accounting
is more than a means of keeping score, it is also the means by which the sophisticated operator keeps his hand on the pulse of the business. It permits him to determine the health of his enterprise and provides the controls for its operation. It also indicates when changes in operations
An accounting system need not be complicated to be effective. In fact, the simpler its construction, the more likely it will be to serve its purpose. This paper discusses the purposes and components of an accounting system and the benefits that can be expected from good accounting practice.
The significance of accounting as an important business tool is a development of comparatively recent years. It was not until about seventy years ago that accounting techniques received much attention, because prior to that time most of this nation's business was done by small, family-owned enterprises. Construction of large production plants and the requirement for increased capital brought about the development of large corporations. In the corporate organization, the owners of the business were not intimately involved in management and it therefore became necessary for management to make an accounting
of its activities to the corporate owners. Such accounting required development of accounting systems and reporting techniques. Still, accounting was of real importance only to the large corporate enterprises.
Record-keeping and financial reporting became compulsory with the enactment of income tax laws. Since that time it has been necessary
for all businessmen to maintain records of annual income and expenses, and to retain business papers to support income reported
PURPOSES OF AN ACCOUNTING SYSTEM