Accounting Services for
Tourism & Tour Agencies
Analyze profit per package, manage seasonal revenue, plan taxes, and use financial data to foster sustainable growth for your tourism business.
- Know Profit Per Package/Route
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- Manage Cross-Seasonal Cash Flow
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- Systematize Deposit Accounting
Plan for Seasonality
Uninterrupted Profit in Low Season
Transform chaotic tour data into actionable metrics for sustainable cash flow management.
Is Your Tourism Business Facing These Problems?
Inconsistent Revenue
High and Low seasons are too extreme. Cash runs dry during quiet periods.
Hard to Control Package Costs
Accommodation, transport, and guide costs fluctuate, making margins unpredictable.
Headaches with Multiple Agents
Deducting commissions and calculating revenue from multiple channels is difficult.
Mixed Customer Deposits
Receiving advance bookings but recording revenue at the wrong time distorts statements.
Volatile Cash Flow
Must pay suppliers in advance but collect from customers later. Cash is tight.
Hard to Secure Expansion Loans
Bank loans for buying vans or opening branches get rejected due to unreliable financials.
Why Do Tourism Businesses Need Specialized Accounting?
Tourism businesses generate Multi-channel Revenue (OTAs, Travel Agents, Corporate, Walk-ins) and have variable costs depending on the number of tourists per group.
A proper accounting system helps you see the true Profit per Package and manage cash flow to sustain the business securely through the Low Season.
Key Metrics (KPIs) Tour Company Owners Must Know
Turn operational complexities into summarized data for sharp decision-making.
Advance Booking Ratio
Proportion of advance bookings and deposits
Cash Flow
Net cash flow of the business
EBITDA
Earnings before interest, taxes, depreciation, and amortization
Tour Package Cost Analysis
Dive deep into the cost structure to maintain target profit margins.
Elevate Tour Management with Financial Data
Analyze Profit by Package and Sales Channel
Instead of just looking at total company profit, we separate account codes and analyze data to help you make sharper decisions:
- Know exactly which package or route generates the highest profit.
- Separate profit by channel (OTA, Agent, Website, Direct).
- Evaluate how commission deductions from each source impact net profit.
Manage Cash Flow for Seasonal Businesses
End the problem of cash shortages during Low Season. We help prepare budgets and advance revenue projections:
- Properly plan and manage the Advance Deposit accounting system.
- Control advance payments to suppliers (hotels/transport) to maintain liquidity.
- Create Cash Flow Projections to proactively prepare for the Low Season.
Lots of Customers, But Not Enough Cash?
Tourism businesses receive deposits upfront but must gradually pay out to hotels, transport, and guides. If deposits are mixed with normal revenue, cash flow becomes extremely tight. Our CFO Advisory service helps systematically untangle this Cash Flow knot.
Preparing Financials to Expand Your Tour Business?
Want to buy more VIP vans, expand to international markets, or invest in an online booking system? Having credible financial statements significantly increases your chances of business loan approval. Consult experts via our Loan Advisory service.
Comprehensive Services SiamAccount Provides
Which Tourism Businesses Is This For?
Tour Company in Chiang Mai
The company organized mixed tours for Thais and foreigners but didn't know the profit per group. Our accounting team set up a Profitability per Package analysis system. We found that Inbound foreign tourist packages had a 30% higher net profit than Domestic Tours, despite higher guide costs. We advised management to reduce domestic marketing budgets and focus on promoting to foreign clients instead. As a result, the company's net profit surged significantly the following year.
Frequently Asked Questions (FAQ)
When should a tour company recognize revenue?
By accounting principles, revenue should be recognized when the service is completed (when the customer finishes the trip), not on the day the advance deposit is received.
How are customer advance deposits recorded?
On the day the money is received, record it as 'Deferred Revenue (Advance Receipts),' which is a company liability. It is transferred to revenue only after the service is completed.
How are Agent commissions recorded?
If we own the service and pay commissions to an Agent, record the full amount as revenue and the commission as a selling expense, withholding tax as required by law.
Do tour companies have to pay Value Added Tax (VAT)?
Domestic tour services are subject to 7% VAT. Outbound tour services are mostly exempt or subject to a 0% rate under Revenue Department conditions.
How should tourism businesses prepare financials for loans?
Banks focus on liquidity, positive cash flow during the High Season, and sufficient EBITDA to service debt year-round.