One of the greatest problems tour operators face is figuring out how much they are earning on every single tour (given the fact that they have no way of knowing the real expenses upfront and no way to compare them to the income of the tour). One way of tackling this problem is by creating supplier invoices. This approach also has some other advantages.
Monitoring business results
Every tour operator needs to keep track of their income and expenses. As tour operators grow their business, the need to monitor their results increases as well. By having supplier invoices in the travel system, the user is able to compare income and expenses for each group, tour, and reservation, thus allowing efficient tracking of business results. These indicators can determine future plans for the development of tour operators.
Avoiding supplier and employee mistakes
In any business, mistakes are inevitable. When entering a supplier invoice into a travel system, some of them can easily be spotted. Irregularities can occur both on the side of suppliers as well as employees:
– For example, the supplier promised you a special offer on a tour. You determine the selling price based on that special offer. The supplier sends you an invoice without a special offer. When entering the supplier invoice into the travel system, you’ll immediately notice that there was a deviation from the net price.
– For example, the employee mistakenly entered the wrong price when making a price list.
Anyone can enter a supplier invoice
The employee who made the booking is likely to be familiar with the additional costs or discounts on the booking. This is why it will be easier for them to enter this supplier invoice than it would be for any other employee.
Everyone can track supplier invoice
By entering supplier invoices in the travel system, each person will have access to these documents, as well as due dates. This will allow them to track payments to suppliers without contacting accounting. This will also provide insight into the reservations which don’t have a supplier invoice, making errors easier to detect and resolve.
Get accurate VAT reports
In many countries, the VAT is calculated on the margin. When making reservations, the net prices are approximate (pre-agreed). If the net price changes due to additional costs or additional discounts, the VAT amount also changes. VAT correction is done when entering supplier invoices. Supplier invoices in your travel system give you an overview of VAT corrections for every reservation, tour, and group.
Export supplier invoices into any accounting software
Travel companies often think that the introduction of supplier invoices in the travel system doubles the job because they will have to re-enter them into the accounting software. This is not so, because supplier invoices entered into the travel system can be easily exported to any accounting software.
Entering and tracking supplier invoices in the travel system has many advantages. By entering them into the travel system, you will have a better overview of the business results, it will help you detect errors, and it will allow you faster VAT correction. The travel system is the ideal base for data that the accounting software needs. It also facilitates and accelerates the VAT calculation, which is the basis for VAT report. The tour operator will therefore have substantial savings on working time in the preparation of these tasks and will be able to devote more time to the business analysis.
Try to enter supplier invoices in Lemax Software!
