Leveraging ROH for Effective Aging AR Management

Loews Hotel - Kansas City

Aging accounts receivable (AR) is not just a financial metric—it's a strategic tool that empowers hotels to maintain financial stability, optimize cash flow, and safeguard the long-term success of a hotel's assets.

Put simply, Aging AR refers to tracking and managing outstanding payments owed to a hotel over time. The term "aging" refers to the categorization of outstanding invoices based on their age, with older invoices posing a higher risk of non-payment.

Now, why is Aging AR important? It serves as a critical indicator of a hotel's financial health. Monitoring the age of accounts receivable is crucial for hospitality brands to analyze the effectiveness of their billing and collection procedures. This helps identify any potential cash flow issues early, allowing sales and finance teams to take proactive measures to address the problem.

Furthermore, Aging AR directly impacts the bottom line. Delays in receiving payments can hinder the ability to meet financial obligations, affect liquidity, and even strain relationships with suppliers and creditors.

To effectively manage aging AR, it's essential to implement reliable invoicing practices, set clear payment terms, and follow up diligently on overdue accounts. ROH's vertical SaaS solution streamlines receivables with real-time visibility and automated payment reminders.

Explore further the advantages of ROH as hospitality brands seek solutions to lead in an ever-evolving landscape.

Automated Reconciliation:

ROH streamlines reconciliation, eliminating manual efforts and speeding up the entire process. Nicole Schafer, Accountant at Saga Hospitality Group, notes: “From a finance perspective, ROH has been a game changer in reconciliation. ROH allows me to instantly reconcile events that always match one-for-one with the bank statements. I can track when and where payments will hit the bank account. This has reduced my weekly reconciliation from hours to minutes each day. I no longer have to guess the status of an invoice because ROH provides all the answers in real time. It has provided a seamless relationship between the finance team and the events team.”

Customized Reporting:

With ROH, real-time reporting is standard, not a luxury. Our platform provides customizable reports for finance teams, ensuring timely insights without guesswork. Kelly Phatsadavong, Director of Billing and Credit Services at Loews Hotels, emphasizes the importance of ROH's holistic view: “As a finance organization, [ROH's] ability for a holistic view is vital. The ROH team has done a wonderful job with data visibility from invoicing to cash flow!"

Strengthened Visibility:

ROH's centralized dashboard enhances visibility into aging AR across all properties, empowering finance teams to proactively address issues and mitigate revenue loss. Nick Singh, Director of Finance at DoubleTree by Hilton Orlando at SeaWorld, highlights how ROH streamlines invoice tracking with automatic sorting and a responsive search feature, saving significant time for his team. “The overall interface is easy to work with and saves us so much time especially when posting payments.”

About ROH

ROH powers hospitality. As a rapidly expanding vertical SaaS platform, ROH drives conversions, increases revenue, and delivers data and insights to the largest asset owners, hotel groups, and property operators that collectively manage over $500B in annual revenue. Developed by industry leaders, ROH has established relationships with best-in-class businesses including Loews Hotels & Resorts, Crescent Hotels & Resorts, and Concord Hospitality. Backed by 1Sharpe Ventures, Founders Fund, Acrew Capital, Moore Specialty Credit, Correlation Ventures, SilverCircle, GMO VenturePartners, and others, ROH’s quickly becoming the system of record for hospitality businesses as they optimize sales and finance operations and access the platform’s proprietary property, portfolio, and market-level data.