For many travel businesses, staying compliant with ATOL and ABTA requirements is part of the job.

However, not keeping financial records that align with licensing expectations is a mistake that regularly crops up.

ATOL and ABTA requirements

ATOL and ABTA want to see the right numbers, presented in the right way. The Civil Aviation Authority (CAA), that oversees ATOL, uses this information to judge whether you are financially sound and whether your projections make sense. ABTA also wants reassurance that customer money is being handled correctly.

Get it wrong, and you risk:

• Delays in licence renewals
• Extra scrutiny or rejections
• Potential fines or even suspension

Where things go wrong

In most cases, the issue is less to do with dishonesty and more to do with disorganisation. We often see firms that:

• Leave compliance tasks until the last minute
• Don’t separate licensable and non-licensable revenue properly
• Use systems that don’t talk to each other (e.g. booking vs accounting)

This makes it difficult to produce a clean, accurate report and creates stress for everyone involved.

How to get it right

A few simple changes can make a big difference:

• Plan ahead, and treat ATOL and ABTA compliance as a year-round task, not just something to panic about when the deadline looms.
• Work with specialists like our team of accountants who understand the travel industry, which can save you a lot of time and hassle.
• Your accounts should reflect licensable turnover clearly. If your booking system and accounting software don’t align, you’ll run into problems.
• Review client money handling regularly – The CAA and ABTA both take this seriously. Make sure you’re consistently applying the right approach.

How we can help

As a firm with deep experience in the travel sector, we provide support that goes beyond ticking boxes. We help our clients:

• Understand exactly what’s required (no jargon)
• Get their books in order well before deadlines
• Spot issues early and resolve them
• Build better systems to stay compliant all year round

ATOL and ABTA compliance doesn’t have to be a headache, but it does need attention.

The sooner you get on top of it, the smoother things will be. If you’d like to talk through your current process, contact us today.