What does the term "city ledger" refer to in hotel accounting?

The term "city ledger" in hotel accounting primarily refers to an account for businesses or companies that have established credit with the hotel. This financial record allows hotels to track transactions that do not involve immediate cash payment, typically for corporate clients or group bookings where charges are settled later, often by invoice. The concept is crucial as it helps manage credit relationships, billing, and accounts receivable within the hospitality industry.

Understanding the importance of the city ledger helps to ensure that hotels maintain accurate financial records and manage their cash flow effectively. By utilizing city ledgers, hotels can keep track of outstanding balances owed by corporate clients, which can range from room charges to additional services like catering or event spaces. This capability is essential for establishing long-term business relationships and ensuring timely payments.