Top 10 Challenges Travel Agencies Face with Bookkeeping
Over the years, I’ve worked with many travel agencies and seen the same accounting problems appear again and again. Most of these issues come from under-utilizing PC Voyages and relying on incomplete bookkeeping practices. Left unchecked, they can lead to inaccurate financials, compliance risks, and lost value for the agency.
01
Unreconciled Bank Deposits
Agencies record client payments but don’t close daily deposits, making monthly bank reconciliations impossible. One agency had more than 1,000 unreconciled receipts blocking further entries.
02
Unrecorded Supplier Commissions
Failure to record commissions received means reports don’t reflect the true amounts. For agencies paying agents on commission, errors can cause underpayment or overpayment.
03
Credit Card Payments Not Properly Allocated
Agencies often pay suppliers with the office credit card but don’t link those charges to client files. Accounts payable reports become unreliable and complicate year-end accounting.
04
Sales Taxes Not Recorded Properly
GST/QST/HST on service fees, markups, or non-commissionable items is often miscalculated or missed, leading to inaccurate filings, penalties, or lost credits.
05
Owner or Staff Travel Not Accounted for Transparently
FAM trips or group escort costs are often not recorded clearly. This reduces financial transparency and the credibility of year-end statements.
06
Supplier Statements Not Reconciled with PC Voyages
Some agencies pay suppliers without matching invoices to bookings in PC Voyages, creating duplicates or omissions and making reports unreliable.
07
Year-End Prepared with Minimal Data
Many agencies simply hand their accountant bank statements at year-end. This produces basic financials but hides the agency’s true performance.
08
Poor Use of PC Voyages Reporting Tools
Despite strong reporting features, many agencies never use PC Voyages beyond invoicing. This means missing insights for sales analysis, cash flow, and long-term planning.
09
Client Refunds and Credits Not Properly Tracked
Refunds or supplier credits are sometimes handled outside PC Voyages. Without proper entries, files remain open or balances are wrong, complicating reconciliations and client trust.
10
Complexities in Group Travel Accounting
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Group travel involves multiple suppliers (air, hotels, transfers, cruises, sightseeing).
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Two common methods exist:
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Method 1: Allocate costs to each client file (recommended).
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Method 2: Use an internal file for supplier disbursements (easier but hides actual profit per client file, problematic if paying agents on commission).