Casino Accounting: The Core in Casino Finances

Managing the casino finances is probably the most challenging area in the casino operations. Because the nature of the casino business involves more liquid assets, the accounting process of the casino business is quite difficult and complicated. Managers in the accounting department are in greater burden to monitor the casino financial operation of how much it spends and how much it earns basically because of the liquid assets in the casino business.

The casino business operates differently from the traditional manufacturing and selling business where they can easily keep track of their expenses and income. Casinos on the other hand operate in a more complex manner where money is converted in the form of chips. This complicates how many chips were actually redeemed and how many were kept by casino players as souvenirs. Furthermore, slots and table transactions are carried out without any written recording which makes accounting of the financial transactions taking place in these areas more complicated and difficult to the casino's accounting department.

Because a meticulous recording of financial transactions are hindered by the fast paced casino activities in addition to the less tangible forms of money passed around from casino games which are usually converted into chips, the accounting are in greater demand of pressure in managing the casino's financial transactions. Managers in this area of casino operation ardently devise plans than will help them cope with the fast flow of financial transactions taking place in the casino and implement procedures effective to control its expenses and to gain more profits.

Because casino's operation involves money, an effective accounting procedure will help provide managers an overview of the financial condition of the casino to which they rely from such information to arrive to a wise decision concerning the appropriate management of the casino's finances. It is the responsibility of the accounting personnel specifically the finance manager to analyze the profits of the casino and the cost of its operation. The study of the casino finances particularly the operation of the different business areas of the casino is empirical in order for the manager to exercise good judgment when devising a policy to implement for each department of the casino establishment.

An effective means of financial management of the casino is proper budgeting of its income and control of its expenditures. Accounting management will also encompass the prevention of theft from the casino earnings by its staff and employees who might take advantage of the monetary liquidity nature of the casino business.

With an effective accounting and auditing procedures implemented in a casino establishment it can save the casino with the possible loses it can incur from its abused complimentary and bonus programs and unnecessary expenses. Proper casino accounting procedures will help the casino with proper profit management.