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POS expenses are coded as "Cost Of Goods Sold". Big deal?

In 2016 more and more hotels and restaurants use cloud-based Point Of Sale and or Property Management Systems. Instead of purchasing software, a monthly "Software as a Service-Fee" is levied. From an accounting perspective, this is now an expense rather than an investment, that is written off.

What happens if this monthly booking is (erroneously) classed as a COGS item and not as an expense?: now your buying cost is driven up while the Systems Expenses show too low. In other words, your PRIME COST, the key indicator allowing you to manage your business appears higher than it actually is. Your Management Information System is now a "Management Confusion System". What can be done about that?

CISBOX allows the automation of all accounts payable transactions. The monthly POS Software as a service [SaaS] fee is booked in seconds with a few clicks. The utility bills, all F&B and FF&E transactions can be automated. One of our large clients has a level of over 80% automation of all account allocations. Enter once, always charge the same G/L account, if you wish enter the profit center and book with a click. What could take serious time manually is now a matter of seconds.

Another huge advantage: in today's labor market it's hard to find qualified staffers. With our technology it is ensured that the same item is "always" allocated identically to the correct account and cost center. Regardless, who is entering the bill.

And to be able to rest assured that your Prime Cost is really based on 100% proper entries translates into confidence: better information is the mother of superior strategies.

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