Hotel Night Audit: A Step-by-Step Revenue and Payment Checklist

The short answer

A hotel night audit is the daily accounting cut-off that closes the operating day, posts room and tax, reconciles cash and card payments, processes no-shows, and rolls the property management system forward. When the sequence is executed in order, the morning shift inherits accurate folios and the property does not lose revenue. Use this checklist to run the overnight close methodically.

Key takeaways

The night audit is the daily accounting cut-off that locks the previous operating day and starts a clean one.
Cash, card batches, and deposits must be reconciled before the business date rolls, never after.
No-shows and unresolved due-outs have to be cleared before posting room and tax or charges fall into the wrong day.
Every discrepancy should be documented in the audit log with a reason and the correction made.
Final reports are operational tools for the morning shift, not just files for accounting.
Automation handles routine posting, but a person still verifies exceptions and closes the day.

Preparation: Shift Handover and Pre-Close Checks

Before starting the audit, the night employee takes over the shift and the cash drawer. They confirm that all arrivals and departures for the previous day are marked in the system, guest folios are either settled or correctly carried forward, and reservation and deposit documents are complete. Any unfinished work left by the day and evening shifts is cleared first.

PMS data must be matched against source documents: cash register receipts, card terminal reports, bank statements, and arrival logs. Even a small variance missed at this stage moves into the next day and distorts the final picture. Preparation therefore requires as much discipline as the reconciliation itself.

Verify the status of every room: occupied, vacant, arrival pending, or needs cleaning.
Confirm that all prepayments and deposits were posted to the PMS when received.
Match arrival and departure lists against the actual state in the system.
Check that restaurant and bar POS systems are closed and exported.

Reconciling Cash, Card Batches, and Deposits

Payment reconciliation is the most labor-intensive step. Start with cash: the drawer balance must match the figure shown by the PMS and the cash book. If the property has multiple payment points, each is checked separately. Then move to non-cash transactions: terminal totals must agree with acquiring reports, and online payments with bank statements.

Deposits and refunds require separate attention. A deposit taken at check-in must be either applied at checkout or returned to the guest, and that action must be reflected in the system. Refunds and reversals need an explanation: who processed them, when, and why. Without that, any difference remains unexplained.

Reconcile the cash drawer against the PMS report for each sales point.
Match terminal totals to acquiring reports and bank statements.
Verify deposits, their application, and any refunds.
Log all reversals and manual adjustments with a reason.

Posting Room, Tax, and No-Show Charges

After payment reconciliation, the PMS runs automated overnight operations: the system posts room charges to every occupied folio, updates taxes, and applies fees. Before launching the routine, confirm that rates are correct and that extensions and changes have been captured. If a guest extended or the rate changed, the system must recalculate accordingly.

No-shows are a separate risk area. For guaranteed reservations where the guest did not arrive, charge the penalty according to the rate terms, then cancel the booking or move it to the required status. If the guest is delayed but may still arrive, either check them in or leave the reservation pending rather than charging an incorrect penalty.

Confirm that room charges were posted to every occupied folio.
Verify that rates, discounts, and special conditions match the booking.
Process all expected arrivals: check in, cancel, or charge a no-show fee.
Check postings for ancillary services: minibar, laundry, parking, and restaurant.

Discrepancy Handling and Correction Rules

Variances usually come from prepayments entered late, errors at shift close, restaurant checks not transferred to a folio, or duplicate transactions. When the system shows one figure and the drawer another, the auditor does not simply force the numbers to match; they find the source of the difference.

Every correction is recorded in the audit log with an explanation. Without that, the next shift cannot understand what happened and the mistake may repeat. If the cause cannot be found, the variance is marked as open and handed to the morning shift or accounting for further investigation.

Late prepayment: post the payment to the PMS as soon as it is received.
Drawer and PMS mismatch: locate the missing receipt or duplicate transaction.
Untransferred restaurant check: post it to the folio before close.
Rate error: correct the charge and record the reason.

Rolling the Business Date and Final Reports

Closing the day is the point at which financial results are fixed and the system moves forward one date. Only after all payments are reconciled, no-shows are processed, and variances are cleared does the auditor run the close. Closing too early pushes errors into the next period, where they must be repaired with backdated adjustments.

After close, reports are generated: daily revenue broken down by payment method and service, room inventory occupancy, the cashier report, and the night audit log. A separate list of guests who did not arrive goes to the morning shift, which decides whether to contact them and whether to charge for unused room nights.

Run the business date roll only after full reconciliation.
Generate the revenue, occupancy, and cashier reports.
Prepare the night audit log describing all corrections.
Hand the morning shift a list of problem guests and open items.

Put it into practice

Night Audit Quick Checklist: 10 Steps to a Clean Close

Print it or load it into the shift folder. Mark each item only after actually verifying it, not from memory.

Take over the shift and cash drawer, and note the opening cash balance.
Verify room and arrival statuses in the PMS.
Reconcile the drawer against the PMS report for each sales point.
Match terminal totals against acquiring reports.
Check deposits, refunds, and reversals.
Confirm that all prepayments are posted in the system.
Run the room and tax posting for occupied folios.
Process no-shows and pending arrivals.
Verify postings for restaurant, minibar, and other services.
Log discrepancies, roll the business date, and generate reports.

Questions people ask

What does a hotel night audit include and how long does it take?

A night audit includes checking guest and room statuses, reconciling cash and card payments, posting room and tax charges, processing no-shows, resolving discrepancies, and generating reports after the business date rolls. The time depends on property size and automation: a small property may need 30 to 60 minutes, while a larger hotel with restaurants and multiple sales points may need several hours.

When is the best time to run the night audit?

The audit is usually run during the quietest window, most often between two and four in the morning. By then the restaurant and bar are closed, most late arrivals have been handled, and early departures have not started. A hotel can shift the window to fit its operation, but every sales point must close its shift and pass data to the PMS before the audit starts.

What should I do if the cash drawer is short or over?

Do not force the numbers and do not close the day. First check whether all receipts were posted, whether there are duplicate transactions, or whether restaurant charges were never transferred to a guest folio. If the cause is not found, record the variance in the audit log, hand it to the morning shift or accounting, and only then close the day if the property's procedure allows it.

How do I handle a no-show correctly?

For a guaranteed reservation where the guest did not arrive, charge the penalty according to the rate terms and then cancel or update the booking status. If the guest may still arrive, do not charge the penalty immediately; either check them in or leave the reservation pending. The key is to avoid a situation where the system shows the room as vacant while the guest is still expected.

Which reports must be generated after the night audit?

The minimum set is a daily revenue report broken down by payment method and service, a room occupancy report, a cashier report, and the night audit log describing corrections. A separate list of guests who did not arrive should also be prepared so the morning shift can decide whether to contact them and whether to charge for unused room nights.

Sources and further reading

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