The night audit is the process that closes the hotel's business day. The night auditor posts room and tax charges to in-house folios, reconciles payments by method, handles no-shows, checks that room status matches housekeeping, and runs the reports that management reads the next morning. Then the system date rolls forward.
It was born in hotels with a dedicated overnight shift, but the logic applies to any property: the day is not closed until revenue, payments and room status all agree.
In practice: even without a night auditor, set aside a few minutes at the end of each day to check payments by method, tomorrow's departures with open balances, tomorrow's arrivals without a guarantee, and rooms still marked dirty. It is the simplest way to avoid surprises at 7 am.
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