Night Audit in a Sanatorium: Rules, Steps, and Automation

What Is a Night Audit and Why Is It Important?

Night Audit is the process of operational and financial day-end closing in hotels and sanatoriums. A sanatorium operates 24/7, providing not only accommodation but also medical, wellness, entertainment, and business services. This wide range of activities results in numerous financial transactions, which increases the risk of errors and potential losses.

Night Audit ensures that daily financial results are checked, corrected if necessary, and summarized. It helps management maintain accurate records, prevent losses, and improve decision-making. In practice, it is one of the most effective management tools, ensuring financial transparency and guest satisfaction.

Modern automation solutions, such as SandSoft Sanatorium, simplify Night Audit by reducing manual workload, minimizing human error, and ensuring reliable financial control.

Key Objectives of Night Audit

The main goals of Night Audit are to check, summarize, and analyze daily operations. Core tasks include:

• detecting mistakes made by front desk or accounting staff during the day (e.g., incorrect charges, missing room status updates);
  
• verifying financial and accounting documentation;
  
• generating accurate reports on revenue, expenses, and profit;
  
• preventing financial losses due to vacant rooms left unrecorded;
  
• detecting fraudulent activity by staff;
  
• providing management with reliable information for planning and financial forecasting.
  

In sanatoriums, Night Audit is also essential for integrating financial reporting with medical and wellness service data.

What Does Night Audit Cover?

The Night Auditor usually works between 11:00 PM and 7:00 AM and does not interact directly with guests. Their responsibilities include verifying:

• daily cash and credit card revenue;
  
• accuracy of guest charges for accommodation and services;
  
• financial balances of departments;
  
• booking and payment records;
  
• occupancy rates and average daily room rates;
  
• correctness of guest registration and room statuses;
  
• submitted repair or maintenance requests.
  

In sanatoriums, this process may also extend to auditing medical services provided to guests.

Methods of Night Audit

There are three main approaches:

1. Manual Audit – all data is processed and summarized manually. Time-consuming and largely outdated.
   
2. Semi-Automated Audit – uses cash registers and accounting machines to record transactions.
   
3. Automated Audit – advanced systems like SandSoft Sanatorium process large amounts of data instantly, highlight discrepancies, and generate reports. This approach ensures accuracy, saves time, and supports real-time monitoring.
   

Typical Night Audit Workflow

A standard Night Audit cycle lasts 15–30 minutes and generally includes:

1. Reviewing room statuses and guest check-ins/check-outs.
   
2. Printing X-reports from cash terminals to confirm daily revenue.
   
3. Running the Night Audit procedure in software, updating room charges and occupancy data.
   
4. Canceling unpaid bookings and calculating agent commissions.
   
5. Printing Z-reports to reset cash register totals.
   
6. Recording cash deposits and storing funds securely.
   
7. Generating detailed reports for cashiers, managers, and accountants.
   

By automating this process, sanatoriums reduce the risk of errors, speed up closing procedures, and ensure accurate financial reporting.

Reports Produced During Night Audit

Night Audit generates several reports, including:

• Revenue Report – breakdown of income from rooms, services, and sales.
  
• Cashier Report – all daily financial transactions.
  
• Cash and Credit Report – balance of cash payments vs. card transactions.
  
• Manager Report – occupancy rates, arrivals, departures, and no-shows.
  
• General Director Report – overall sales summary.
  
• Tax Reports – including VAT and service-related taxes.
  
• Room Rate Report – applied tariffs and discounts.
  
• Food & Beverage Report – for facilities with meal plans (BB, HB, FB, or All Inclusive).
  

In sanatoriums, reports may also include wellness and medical service data, offering a complete view of both healthcare and hospitality operations.

Benefits of Automation

Carrying out Night Audit manually is no longer practical for modern institutions. With SandSoft Sanatorium, organizations gain:

• automated error detection and correction;
  
• integration with booking engines and POS systems;
  
• instant report generation in digital format;
  
• full transparency of operations;
  
• reliable compliance with financial regulations.
  

This improves efficiency, reduces fraud risks, and allows staff to focus on service quality rather than paperwork.

Conclusion

Night Audit is a critical management tool for sanatoriums and hotels. It ensures transparency, prevents losses, and provides accurate insights for financial planning.By implementing automated solutions such as SandSoft Sanatorium, institutions can transform Night Audit from a time-consuming routine into a streamlined process that enhances both operational efficiency and guest satisfaction.