A Brief History of USALI and Its Importance

USALI has been the standard for accounting in the hotel industry for decades. Originally published in the 1920s, it’s been continuously updated to reflect the changing landscape of the hospitality business, from shifts in technology to evolving financial reporting needs. USALI helps ensure consistency and accuracy in hotel financials, making it easier to compare and analyze data across properties, regions, and brands.

The latest revision, the 12th Edition, brings significant updates that align with modern practices and sustainability goals. This new edition reflects changes in the way hotels manage data, particularly in terms of operational expenses and sustainability reporting.

What’s New in USALI 12th Edition?

The USALI 12th Edition includes several key updates that hotels need to be aware of:

1. Updated Energy Reporting: There is now a more detailed structure for energy-related expenses, including water, gas, and electricity. This move is aimed at helping hotels better track and manage their energy consumption, supporting sustainability efforts and reducing utility costs.
2. Refined Chart of Accounts: The chart of accounts has been updated to ensure more accurate tracking of revenue and expenses, streamlining financial reporting across various departments within the hotel. This makes it easier for hotel teams to align their internal systems with industry best practices.
3. Sustainability Reporting: The 12th Edition emphasizes sustainability, with improved frameworks for reporting energy consumption and environmental impacts. This shift aligns with the growing demand for hotels to demonstrate their commitment to sustainability and environmental stewardship.
4. Multi-Property Consolidation: For hotel brands or chains with multiple locations, the 12th Edition now provides a more streamlined way to consolidate financial data from across properties. This change simplifies reporting and gives hotel operators a clearer view of their financial health at both the individual property and brand level.

Why USALI Compliance Matters for Hotels

Adopting a USALI-compliant FMS is more than just meeting industry standards—it’s about improving efficiency, increasing accuracy, and driving smarter business decisions. Here are some of the key benefits of using an FMS designed with USALI compliance in mind:

• Simplified Audits: With an FMS that integrates USALI guidelines, audits become much easier. Automated reporting ensures that your financial statements are compliant, reducing the time and cost spent on manual adjustments or third-party audit services.
• Energy and Sustainability Tracking: The new energy reporting requirements not only help hotels stay compliant but also provide actionable insights that can drive energy savings. This contributes to reducing operating costs and supports broader sustainability goals.
• Cost Savings: A USALI-compliant FMS eliminates the need for third-party auditing services, which can be expensive. It also ensures that your team isn’t wasting time on manual data corrections and reports.
• Future-Proofing: A modern FMS that’s built for USALI compliance is continuously updated, ensuring your hotel stays ahead of future revisions to the standards.

How to Stay Compliant: Key Features to Look for in a USALI-Compliant FMS

As the January 1, 2026 deadline approaches, hotels need to ensure their financial management systems (FMS) are up to date with the USALI 12th Edition standards. Here are key features to look for in a financial management system to help your hotel stay compliant:

1. Pre-Mapped Chart of Accounts
   A USALI-compliant FMS should come with a pre-mapped chart of accounts that aligns with the new edition's standardized revenue and expense categories. This ensures accurate financial tracking and reporting, helping to eliminate the need for manual adjustments.
2. Automated Data Consolidation
   The ability to automatically consolidate financial data across departments and properties is crucial. Automated data aggregation ensures that all financial information is up-to-date and accurate, enabling timely, compliant reporting.
3. Departmental Reporting
   A system that generates departmental reports in line with USALI guidelines simplifies compliance. The system should be able to break down financial data by department (such as rooms, food and beverage, and other services), ensuring that all aspects of the business are properly accounted for.
4. Energy and Sustainability Tracking
   The USALI 12th Edition includes more detailed reporting on energy consumption. Look for an FMS that includes tools to track and report energy, water, gas, and electricity expenses. This is essential for complying with new sustainability reporting standards and for identifying opportunities for cost savings through energy conservation.
5. Customizable Dashboards and Reports
   A USALI-compliant FMS should offer customizable dashboards that allow users to track the financial metrics that matter most to their property. This flexibility ensures that hoteliers can focus on what’s important for their business while maintaining compliance with industry standards.
6. Multi-Property Financial Management
   For hotel chains or groups with multiple properties, the FMS should support the consolidation of financial data from across locations. Multi-property capabilities make it easier to manage financials at both the individual property and enterprise levels, ensuring consistent reporting across the board.
7. Real-Time Financial Insights
   Access to real-time financial data is essential for quick decision-making and ongoing compliance. A compliant FMS should offer up-to-the-minute reporting, enabling managers to review financials, track expenses, and spot discrepancies as they arise.
8. Built-In Compliance Updates
   Given that financial standards like USALI evolve, it’s important to use a system that automatically updates to reflect changes in regulations. This ensures that your hotel remains compliant without having to manually track and implement updates to your system.

By ensuring that your financial management system includes these essential features, your hotel will be well-equipped to meet the USALI 12th Edition requirements and stay compliant leading up to the 2026 deadline.

Get Ready for 2026: Take Action Today

USALI compliance doesn’t have to be a daunting task. With the right tools and understanding, your hotel can meet the January 1, 2026 deadline with confidence. The 12th Edition brings critical updates that are designed to streamline operations, improve financial reporting, and support sustainability efforts. The right financial management system can make this transition smoother and more efficient.

At Data Plus, we’re committed to helping hoteliers stay compliant with industry standards while optimizing financial management. Reach out today to learn more about how we can support your hotel’s transition to USALI compliance.