Casino accounting has three main objectives: preventing theft, assuring that the reporting of revenue is accurate, and analyzing data for proper decision making. The prevention of theft is important because of the amount of liquid assets a casino possesses.

Because most slot and table transactions take place with no written record, proper accounting is extremely important. Transactions are only reported once a day, which creates a high level of difficulty and a high chance for mistakes.

One of the most important reasons for accounting is to provide managers with the information to make necessary decisions in a wise manner. Because casinos are not a traditional business where money is spent or items are manufactured, managerial accounting is much more difficult.

Some of the strategies that a manager should utilize are break-even analyses and evaluations of the cost and profits so that the manager has a strong understanding of the total costs of the casino. It is also important for a manager to analyze the costs of new games and of programs or junkets before instituting them.

By analyzing the costs and profits of the casino, the manager should be able to determine different standards for departments and employees. For example, in many casinos food and drink are considered more of a support to the casino rather than an important part of the business. Therefore, a manager may realize that he will not bring in a large profit on food and beverages. With this in mind, a manager can change his policies and expectations accordingly.

Developing and implementing a budget is also important for casino management. When constructing a budget, the manager must closely examine the revenues and, perhaps for the first time, closely evaluate the casino’s costs and profits in relation to factors such as the season, mix of customers, promotions and advertising.

Managers also must be sure to do detailed cost analyses of specific sections of the casino, such as slot machines or food and beverage, so that they know how effective they are. They also should utilize financial forecasting in order to predict how much money they have and how much they may need to borrow in the future.