M3’s boutique accounting services assist North Star Lodging management in back office procedures
North Star Lodging Management (NSL) is both a premier developer and premier operator focused primarily on the hospitality industry. Based in Pittsburgh, Pennsylvania, NSL has completed a number of custom hotel developments in the eastern United States since its inception in 2015 and currently manages a portfolio of four hotels in Pennsylvania, North Carolina and Florida. Since 2017, NSL has been using core accounting, document imaging, PMS mapping and professional services from M3. In addition to using M3’s software and services, NSL also relies on M3’s industry partners, including Paymerang, since 2021, and HotStats, since 2022.
With decades of experience developing and managing hotels, NSL knew it needed to quickly build an efficient and scalable back office to be competitive and adaptable in a changing hotel landscape, without losing sight of its mission to develop and renovate great products and unlocks above average returns for its investors. With a new hotel development and acquisition occurring when it was founded, NSL used QuickBooks for its hotel back office accounting. However, when both hotels were scheduled to become operational around the same time, NSL identified several obstacles the company would encounter with a small workforce if it continued to use QuickBooks, including the lack of PMS integrations, tedious reporting and the platform was not built. thinking of hoteliers.
Also, as a newer, smaller company, NSL was looking to scale its hotel portfolio and realized that QuickBooks lacked a hotel-specific chart of accounts, lacked statistical accounts with analytics and left more room for data entry errors. NSL’s small size offered them greater flexibility and speed in decision-making and communications, but soon realized that QuickBooks shortcomings would cause delays in setting up and operating new hotels in the accounting system, would prevent the creation and execution of processes and procedures and distract them from its mission.
Through all of these challenges, NSL realized it needed to find a reliable, hotel-specific software and service provider that would allow it to focus on keeping hotels running smoothly and efficiently.
Thanks to NSL’s research into back-office software and services, M3 was recommended not only for M3 Accounting Core, but also for M3’s outsourced accounting services – Professional Services M3.
M3 Professional Services (M3PS) is a boutique accounting service that offers hoteliers the ability to entrust their finances to hospitality experts to stay compliant, file taxes correctly and on time, avoid potential fines or legal issues and ensure their investors, bankers, and owners have reliable information on time.
M3PS would provide weekly NSL bank reconciliations, daily PMS reconciliations, and monthly funding statement reconciliations. With this, NSL realized it would be able to focus on what’s important: opening hotels, pursuing new development projects, and maintaining efficiency and scalability by creating more robust internal procedures.
Additionally, NSL realized the benefit of placing employer charges on M3 and realized that by leveraging its partnership with M3PS, it would be better able to control costs, such as professional salaries, l health insurance, 401k benefits, vacation pay, legal disputes, and more. NSL Chief Financial Officer, Jack Macioce, shares, “At the start of NSL, we had limited resources to find experienced and qualified accounting staff. Through our relationship with M3, we were able to focus our efforts on opening hotels, developing standard operating procedures and identification of new hotel developments.”
From the outset of its partnership with M3, NSL was quickly able to build a business to carry out its mission effectively and efficiently, while M3 Professional Services helped develop and execute its core accounting functions. The most important benefit that NSL has experienced is the ease and speed with which it is possible to set up a hotel with M3. “M3 Professional Services handles all the hard work. They put everything in place, make sure we have a consistent chart of accounts, identify any inconsistencies that need to be fixed, ensure consistent financial reporting, and make sure our PMS mapping is set up to accurately link our PMS Codes into our ledger.”
Included in its services, M3PS assists NSL with financial statement mapping, maintenance of the chart of accounts, monthly tax filing and payments, weekly checks and bank reconciliations, owner and lender inquiries and end closing. of months. Additionally, M3PS acts as a consultant to NSL providing recommendations as NSL strives to evolve its portfolio of hotels.
“We consider our M3 accountants to be part of the NSL team. Open communication is amazing, and every communication has a full and prompt response, which is essential as it is very important to understand how our hotels operate on a day-to-day basis. We can react quickly to problems or replicate operational efficiencies.
Another benefit of using M3PS that NSL has observed is having an extra look at anything that might be missed during daily or weekly routines. M3 enables NSL to provide additional support to hotels at a corporate level and remove some responsibilities from general managers. Macioce mentions, “With recent world events and the current work environment, the job description for a Managing Director has changed significantly, and their time is valuable. With the help of M3, we have been able to move much of our accounting and certain operational responsibilities above the property, allowing our General Managers to focus more on managing the operations and profitability of their hotel.”
Through the use of M3PS, NSL has expanded its portfolio and expects further growth, while the accounting and employer burdens fall to M3.
Built by hoteliers exclusively for hoteliers, M3 is a powerful cloud-based financial platform and services company that serves more than 7,500 properties in the North American hospitality industry by driving cost savings, business improvement income and business information. After 23 years in business without a price increase, M3 boasts a customer retention rate of 95%. Used by more than 1,000 management groups, owner-operators and hotels of all sizes, the platform works seamlessly with other key hospitality industry systems and tools and offers robust accounting and financial analysis across the board. wallets with optional operations and time management features. M3’s professional services team provides on-demand support to hotels of all sizes by offering a full range of custom accounting solutions tailored to a hotel’s needs. Privately owned and employee-owned, M3 continues to improve its products and services at no additional cost to its customers. For more information, visit www.m3as.com.
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