Uniform System of Accounts for Hotels is a manual that provides, firstly, uniform classification of income, expenditure, assets and liabilities for hotels and secondly, a standardized, uniform method of presenting financial results of operations. This manual was prepared in order to bring uniformity in accounts in hotels, irrespective of their size. The need for such a classification was being felt by hotels since long. In 1925, the Hotel Association of New York City appointed a Committee of Hotel Accountants to prepare a manual, showing a simple formula for the classification of accounts. This committee prepared a common manual both for large and small hotels, showing uniform classification of financial statements. This manual of instructions has been adopted by Indian hotels.

Accounting has been, for centuries, concerned with recording, summarizing and reporting in terms of money, the transactions of an organization, although the scope has gone beyond these three basic procedures in the modern age.

An example of simple accounting, familiar to all the readers, is the statement of accounts you receive from the bank. This statement is a copy of the bank account you hold and contains a record of the bank transactions with you; showing as a debit, each amount withdrawn by you, and as a credit, each amount received from you and paid to your account. The balance being the amount of your money held by the banka credit balancewhich is a form of summary and the whole is reported to you, the holder of the account for information. The main and more complex accounting procedure of the bank would be summarizing all accounts and compiling a report to shareholders, containing a statement of profit during the period and a balance sheet of the bank's financial position at the end of the period. Your credit balance would be amongst those shown as a liability in the balance sheet because the bank is liable or obliged to pay you the balance on request.

Accounting for exchange of money and services rendered presents few problems. Accounting for individual hotels and restaurants is not generally complicated as the unit is relatively small, whereas accounting for the large clearing groups with the centralized food production, have complicated tasks of valuing food stocks, pricing, inter-group trading, and other problems.

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