Managing Financial Performance in Hospitality Business

Hospitality Business Tool kit

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Introduction of financial transactions in hospitality business......................................................3
Ways to manage and monitor the financial performance of the business....................................4
Principles of double entry bookkeeping......................................................................................4
Producing trial balance................................................................................................................4
analysing costs and how they can influence financial performance ...........................................7
Importance of accurate recording of transactions........................................................................8
Conclusions and recommendations..............................................................................................8
PART B............................................................................................................................................8
Various HR life stages to a particular hospitality job role and their benefits for developing and
retaining talent.............................................................................................................................8
Performance management plan to support particular job role and techniques to solve positive
or negative behaviour and overcome this issues..........................................................................9
Legislation that the hospitality organization is complying with................................................11
Company employment and contract law have impact on business decision-making in the
industry......................................................................................................................................12
Functional roles in hospitality sector.........................................................................................13
Different communication methods and effectiveness of these methods....................................13
Review of integration and coordination within an organisation. .............................................14
recommendations.......................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
Hospitality sector is the service sector that provide services which are related to
accommodation, travelling, food, transportation etc. it includes restaurant, hotels and bars. The
primary role of this sector is to satisfy their guests because for that only guests are paying to
them. Le meridian is the multinational hospitality company which have chains of hotels
worldwide. They are internationally known for the world-class services they provide. They have
swimming pools, gaming area, football courts etc. to entertain their guests. This report will
discuss the principles of managing and monitoring financial performance, applying double entry
book keeping system to record sales and purchase transaction in ledger. Will produce trial
balance by applying balance off rule. Further will discuss different stages of HR life cycle
applied to hospitality job role and role of HR for talent management and retaining workforce.
Developing performance management plan for the job role applying techniques to solve the
negative behaviour and issues of staff. This report will also identify legislation that the
organization comply and describe how company employment and contract law has impact on
decision-making.
PART A
Introduction of financial transactions in hospitality business
Hospitality sector is rapidly growing worldwide. Proper accounting system is very
important for the hospitality sector. If the organization want to grow then they need proper
financial management which is needed to record the sales, pay employee salary, recording daily
transaction, calculating business profits etc. accounting is important to this industry as it
improves the working of the industry (Nidamanuri and Hurt, Mastercard International Inc, 2017).
Le meridian accounting include:
Preparing all the month end accounts which include all daily transactions.
Budget preparation: under which company decide that what amount should allocated to which
resource.
Business planning: under which planning related to market and target customers etc. are done.
Making financial statements which include profit and loss and balance sheet.
Profit and loss: it is the statement which shows revenue and expenses. Room and food related
costs are the expenses.

Balance sheet: it tells the financial position of the business and contain assets and liabilities of
the business.
Ways to manage and monitor the financial performance of the business
Preparing financial statements: this is very important as it tells the financial position of the
organization, le meridian prepare it systematically so that performance can be measured
(Hendon, Powell and Wimmer, 2017).
Inventory records: company invest in equipments and raw materials so maintaining inventory
records is must.
Preparing financial ratios: this is helpful in getting the information about assets and liabilities
and which assets can be easily converted into cash.
Competitive analysis: le meridian compare their financial indicators with the competitors and
can come to know strategies which their competition is following, but they are not.
Principles of double entry bookkeeping
In the double entry system, every transaction have dual aspect as one party will be on debit side
and another on credit side and transactions which are in the form of money is recorded.
Transaction should have one receiver and one giver. It states that business is separate from the
owner and it is the separate entity (Albayati, Kim and Rho, 2020). In the double entry system
accounts are maintained through journal, ledger, trail balance and financial statements. This
system is helpful in determining profit and loss. It is easy to apply and use for future reference.
Producing trial balance
December 1 cash deposited in bank € 20,00,000
December 2 goods purchased for cash €6,00,000
December 3 machinery purchased for cash € 4,00,000.
December 5 computer purchased paid by cheque € 30,000
December 10 salary € 20,000 paid by cheque.
Journal entries
Date (December) particulars L.F. DR(€) CR(€)
1 Bank ac
to cash ac
(being cash
deposited in
2000000 2000000