Managing and Monitoring Finance in Hospitality Industry

Hospitality business
tool kit
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO1..................................................................................................................................................3
Principles which are used in managing and monitoring finance related performance...............3
Double entry book-keeping system that records all the sales and purchases of a business in
ledger and journal........................................................................................................................5
Preparation of trial balance with the help of ledger accounts.....................................................8
Analyse the trial balance.............................................................................................................9
LO2..................................................................................................................................................9
Explanation of Various stages of HR life cycle for a job role in hospitality sector and its
importance in developing talent and retention............................................................................9
Preparation of performance management plan for a job role in hospitality industry with
different techniques to solve passive behaviour and resolve issues of staff retention..............10
Role of HR in staff retention and management handling..........................................................11
LO3................................................................................................................................................12
Explanation of a legislation that hospitality sector organisations follow in its functioning.....12
Different examples and illustration to explain in what manner company, employment and
contract law impacts on organisational decision making in hospitality industry......................12
Political legislations impact on a business................................................................................13
LO4................................................................................................................................................14
Explanation of different functional roles in hospitality industry inter-relate............................14
Explanation of various methods of coordination, communication, and monitoring are
applicable within a department of hospitality industry that develops a value chain................14
Different methods of communication and coordination contributes to organisational success15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18
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INTRODUCTION
Hospitality industry performs various functions and operations to survive at the
marketplace. The Operations at hospitality industry are performed by various professionals in
order to maintain proper accountability. Financial and human resource functions at hospitality
industry play a major role in determining the strength of an organisation (Bilro, 2019). In this
report principles of managing finance are covered along with the application of double entry
book-keeping system. In this report trial balance is also covered and various stages of HR cycle
for a specific job. This report covers formulation of a performance management plan for a
hospitality sector job role and identification of specific legislation that hospitality sector follows
and explanation of employment and contract law. This report also covers how different
functional roles within the hospitality sector interrelate along with description of various ways of
coordination, communication, and monitoring within a department. To understand hospitality
sector functions in a precise manner, in this report example of Hilton hotel is taken into
consideration, the Hotel was established in 1919 in Texas, United States.
MAIN BODY
LO1
Principles which are used in managing and monitoring finance related performance
Financial performance is a value analysis of business related to the financial transactions
which are performed by a business. In the era of stiff competition financial performance is
the measurement of company’s performance in utilising the funds in an efficient manner. It
is the important responsibility of Hilton hotel to maintain financial performance throughout
the year. In the competitive environment it is essential for the management to generally
provide best financial performance in order to utilise the funds in an efficient manner.
Principles are essential in maintaining financial performance of a business; they also help
in enhancing revenue and assets of a business in hospitality sector. The principles of
monitoring financial performance are performed by professional management personnel’s
at Hilton hotel which are mentioned below:
 Consistency- In monitoring the financial performance of a business there should be
regularity in financial management. Throughout the whole financial year a regular record
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of transactions should be maintained at Hilton hotel to ensure systematic book-keeping of
financial transactions.
 Timeliness- Time factor play a crucial role in managing and monitoring all financial
transactions which takes place in a business in a financial year. Guidelines related to time
which is provided by top financial management at Hilton hotel should be followed by
concerned accountants in a precise manner.
 Justification- In monitoring and managing financial transactions of a business, there
should be a proper accountability and justification by finance management authority of
Hilton hotel. The Transactions should be justified on the balance sheet with correct match
and evaluation which is performed at last should be justified properly.
 Documentation- There should be a proper documentation of all financial transactions
which are performed during the whole financial year (Deale, 2017). Documentation with
proper format and application should be performed by management in order to monitor
financial performance effectively.
 Certification- The transactions which are recorded in whole year should be certified by
an auditing authority at the end of financial year. Certification must be done by
professional management to effectively manage and monitor all finance related activities
of Hilton hotel.
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