Financial Management and HR Life Cycle in Hospitality Business: A Case Study of Hilton Hotels

UNIT 4 THE HOSPITALITY
BUSINESS TOOLKIT

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
ACTIVITY 1- PART A...................................................................................................................3
Introducing financial transaction of Hilton by determining types of source documents.............3
Investigating principles of managing and monitoring financial performance of venture............3
Explaining the principles of double entry bookkeeping systems of debits & credits..................3
Analysis of trial balance using sales and purchase transactions, and steps of trial balance........3
Analysis of errors in trial balance and their rectifications...........................................................4
Types of cost and their influence on financial performance and profit margin calculation-.......4
Discussing the importance of accurate recording of transaction in line......................................5
Including conclusion that critically examine role of financial management and monitoring......5
ACTIVITY 1- PART B ..................................................................................................................6
Different stages of the HR life cycle as applied to issues in talent acquisition and retention
within the food and beverage sector............................................................................................6
Developing a performance management plan .............................................................................8
.....................................................................................................................................................8
Recommendations to improve HR life cycle ..............................................................................8
legislation(s) that hospitality organizations has to comply..........................................................9
Impact of company's employment and contract law on business decision-making ...................9
Examining potential implications of two regulations..................................................................9
Critically reflecting on impact of ethical issues of regulations..................................................10
ACTIVITY 2..................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In today's business environment, everyone needs to understand the concept of business-
not just their own part of it but how all the different aspects link together. The actions of a
hospitality manager can have a direct impact on other areas of business. The present report is
based on hospitality sector, Hilton hotels which is one of the largest hotel chain in the world
provides various types of services to attract customers. The current activity has two part, in part
A, the report is going to cover all the business transactions and accounting processes that the
organization goes through annually. In part B, the study will outline about human resources life-
cycle and potential impact of legal and ethical consideration on a hospitality business.
ACTIVITY 1- PART A
Introducing financial transaction of Hilton by determining types of source documents.
Financial transaction refers to the strategic agreement or contract as well as
communication between buyers and sellers. This kind of agreement may enable both parties to
exchange products and services or other assets for purpose of money.
Payments and receipts are the two types of financial transactions that Hilton may utilize
in appropriate manner. It may also take approach to use some specific source documents such as
checks, receipts, invoices, purchase orders and credit memos. By using each source of document,
management may keep evidence of financial transaction between venture and others such as
suppliers.
Accounts manager may follow the process of recording in which different types of stages
are included (Accounting Cycle, 2022). By referring to accounting cycle concept, some phases
are determined such as transaction, journal entries, posting, trail balance, worksheet, adjusting
entries, financial statements, and closing the books.
Investigating principles of managing and monitoring financial performance of venture.
Consistency-
According to the first principle of financial management, in the Hilton, management may
focus on transaction of money which they are accountable to handle in consistent way.
Timeliness-
The current principle may drive the attention of manager toward handling overall
financial transaction on time, by following the overall process and policy as it enable them to

grow Hilton rapidly (FIVE PRINCIPLES OF FINANCIAL TRANSACTIONS MANAGEMENT,
2020).
Justification-
They may take approach to clarify the reason behind small or large transaction that help
management to achieve aim of a task or project, adhere to strategic guidelines.
Documentation-
Management may assure that documentation is complete in appropriate manner before
and after financial transaction that may impact Hilton performance and success either in negative
or positive manner.
Certification-
It is important for them to make transaction approve and keep all the practice up to the
mark, with high authority approval and engagement.
Explaining the principles of double entry bookkeeping systems of debits & credits
The process of double entry bookkeeping system is quite simple and easy to comprehend.
As it is based on specific term such as every debit may have opposite and equal credit. Two
accounts are important to have that include any transaction.
It can be said that double entry is based on credit & debit accounts of money transaction,
that happen from national to international level (Sangster, 2022). Thus, it is essential for
management to comprehend above principle and also type of account, that might be real,
nominal and personal.
By following the above principle of double entry bookkeeping, they may manage
financial accounts and process of Hilton in appropriate way, which enable them to reach desire
outcomes as strategic decisions are made in systematic way.
Analysis of trial balance using sales and purchase transactions, and steps of trial balance.
For the year 2020.
Particulars Debit balance Credit balance
Total revenue by sales of services 4307
Sales of continuous operations 720
Purchase of operational services 620