The Hospitality Business Toolkit: Financial Transactions, HR Life Cycle, and Compliance

This report discusses the tools and principles of managing financial transactions, double entry bookkeeping, costs, and the value of accurate recording of transactions in the hospitality industry. It also covers the HR life cycle stages, performance management plan, and specific legislation that a hospitality company has to comply with, using Bliss Hotel Southport as a case study.

The Hospitality
Business Toolkit

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART-A...........................................................................................................................................3
An introduction to the financial transactions..........................................................................3
Principles of managing and monitoring financial performance.............................................4
Principles of double entry bookkeeping system.....................................................................4
Produce and assess a trial balance..........................................................................................6
Types of costs and how they can be managed to influence financial performance...............7
Value of accurate recording of transactions...........................................................................8
PART-B...........................................................................................................................................8
HR life cycle and its various stages........................................................................................8
Create a performance management plan................................................................................9
Judgements and recommendations.......................................................................................10
Specific legislation that a hospitality company has to comply.............................................10
Company's employment and contract law............................................................................11
Different functional roles within the hospitality sector........................................................12
Different communication methods and levels......................................................................12
Critique a coordination and integration within a business entity.........................................13
Analyse the effectiveness of different methods of communication.....................................13
CONCLUSION .............................................................................................................................13
REFERNCES:................................................................................................................................14
Books and Journals:..............................................................................................................14
Online:..................................................................................................................................15

INTRODUCTION
The hospitality industry is vast in nature. It is categorised into three section such as food
and beverages, accommodations and travel and tourism. All of these sections are customer
focused as they indulge different kinds of services. Hence, hospitality organisation refers to the
business which mainly focuses on to offer services to the customers. The main agenda of these
companies is to deliver an enjoyable experience to the customers (Goryushkina and et.al., 2019).
The company which is chosen to prepare the assignment is Bliss Hotel Southport. It is a
luxurious hotel with headquarters in Southport, United Kingdom. This hotel provides its services
to all types of customers whether they come as family or couple. It is a perfect destination to get
a relaxed break from the hectic days. It has boutique hotel, penthouses, bliss kitchen, conference
centre on site, roof garden and many more. The following report is based upon the utilisation of
different tools of business that helps in the attainment of goals and targets of business.
PART-A
An introduction to the financial transactions.
Financial transactions is meant by an activity that results in a direct influence on the
financial statements and financial status of an organisation. These activities changes the value of
liabilities, assets, equity of owner and more (Albayati, Kim and Rho, 2020). The main source of
documents used by hospitality company are checks, credit momos, invoices and more. In case of
Bliss Hotel Southport, the following are types of source documents:
 Transactions: For the Bliss Hotel Southport, it may involve a debt payoff, sales revenue,
acquisition of assets.
 Journal entries: It is next phase in process to record entries in the journal in
chronological order. It essential that debits and credits must always balance.
 Posting to the general ledger: It related with a summary of all transactions to single
accounts.
 Trail balance: It may be done quarterly, monthly or annually.
 Worksheet: It is used when debits and credits do not match in the trial balance, the
bookkeeper must find out errors to make adjustments.
 Adjusting entries: It is done in the end of financial period for accruals and deferrals.

 Financial statements: By using correct balances, the income statement, balance sheet
and cash flow statement are made for the organisation.
 Closing: In this, the revenue and expenditure accounts are closed and zeroed out for the
next period of accounting. This is because these accounts are temporary accounts which
delineates performance for a certain period. Balance sheets are not closed as it shows the
company's financial status at particular point of time.
Principles of managing and monitoring financial performance.
In respect of Bliss Hotel Southport, the main principles of financial management are as
follows:
 Consistency: It is necessary that business transactions must be handled in a consistent
way. For the chosen firm, organisational policies and procedures have been set to address
same kinds of transactions regularly (Sharma, Mateush and Übi, 2019).
 Timeliness: Business transactions must be managed within a genuine time period.
 Documentation: It is essential to have sufficient documentation to assist financial
transactions must prepare (Hou, 2019). It must be organised, retained and accomplish
enough to stand up to an audit.
 Justification: It is essential to have a genuine reason for every transaction that supports
the objectives of project and fit to guidelines.
Principles of double entry bookkeeping system.
A double-entry bookkeeping system is where a related entry is done for every financial
transactions that are debits and credits. The foundation of the double entry bookkeeping system

is that every dealing has two sides and influences two ledger accounts. Hence, it is deal with two
or more accounts for every transaction of business (Double Entry System: Defined, Features &
Principle Explained, 2022). In case of Bliss Hotel Southport, the main principles of double-entry
system are as follows:
 It essential to have at least one giver and one receiver.
 The exchange of money must be equal between giver and receiver.
 The company has serrate legal entity.
 Every financial transaction is categorised into two aspects. Debit will be on the left side
and credit will be on the right side (Faccia, Moşteanu and Leonardo, 2020).
 The results must be equivalent in both sides.
 It is scientific in nature.

Produce and assess a trial balance.
A trial balance is a document that lists the balances of all general ledger accounts of an
organisation at a particular point of time. The accounts are shown on a trail balance are
associated to all key accounting items such as equity, assets, liabilities, profits, expenses, losses
and more. The main aim is to find the balance of debits entries and credits entries from the
recorded transactions in the ledger (Bagdasaryan, 2019). In respect of Bliss Hotel Southport, the
main rules that must be followed by the business is as follows:
 All assets must be shown on the debit side, while liabilities must be shown on credit side.
 All income and gains must be shown on the credit side of the trail balance.
 Expenses must be shown on the debit side of the trial balance.

Types of costs and how they can be managed to influence financial performance.
As per the viewpoint of Sarah Davis (2021), cost accounting is used as an internal
management tool that helps organisations to make budget and boost its profitability. In respect of
chosen company, there are varieties of costs that influences the financial performance of the
business. Some of them are mentioned below:
 Direct costs: These are the costs that are directly linked with the manufacturing of
product or service (Zhang and et.a., 2021). It may cover costs related to materials or
labour. For the selected company, it may include distribution costs or any other costs.
 Indirect costs: These kind of costs cannot be easily traced to an individual department,
product, project or activity. For the chosen company, it may be the costs used in the
maintenance of the staff members.
 Fixed costs: The main feature of fixed costs is that it does not change. These costs are
simple to calculate as it is fixed and more tangible (What Are the Types of Costs in Cost
Accounting?, 2021). For the chosen company, it might be fixed rate of interest on a loan.
 Variable costs: These kind of costs can change based on the performance of business.
These costs increases when the production of goods and services increases.

To calculate the profit margin of the Bliss Hotel Southport, gross profit can be divided by
revenue and to create profit margin in percentage, it can be multiplied by 100.
Value of accurate recording of transactions.
Bookkeeping is very important for any organisation and keeping recorded transactions
must always be done and in a correct manner. In addition to Bliss Hotel Southport, the
significance of recording of transactions are as follows:
 It helps in maintaining a healthy relationships with clients. For the business, it is essential
to keep detailed and accurate records of regular transactions. All the accounts receivable
of customers must be recorded properly. This will help in collecting and documenting the
payments to the accurate customer’s accounts (Why Record Keeping Is So Important,
2021).
 The organisation is also needed to keep records of transactions on timely basis to make
sure that one receive payment for an invoice. It will help in mitigating the risk of frauds
in transactions (Fiore and et.al., 2019).
PART-B
HR life cycle and its various stages.
Human resources life cycle is also known as the employee life cycle. It relates with the
stages of an employee's time in a specific company and the shifting roles, the HR function

possesses a role in each of those phases. In case of Bliss Hotel Southport, the main stages of HR
life cycle is discussed below:
 Recruiting and on-boarding: Recruiting is meant by those activities which concern with
employing new people in the company. HR executive plays a role of hiring people in the
organisation (Crane and Hartwell, 2019). It is essential to make new employees familiar
with the organisational vision, mission and objectives. It is seen that most of the
employees leave organisation in their first three months of hiring, thus, it is required to
offer proper guidance and encouragement to the employees. In case of chosen firm, to
reduce the issue of talent acquisition and retention, HR mainly find out the skills and
expertise and then accordingly onboard in jobs.
 Orientation and career planning: Orientation refers to a process through a new member
can become a part of the company. They will be introduced with the respective jobs,
duties, set relationships and more. Career planning is meant by the process in which
employee and employer work out on the things to attain long term objectives within the
business. Both orientation and career planning possesses a specific role in the issuses of
talent acquisition and retention by properly communicating the roles and plans for the
growth which will help in building strong bond and help in goals achievements.
 Career development: It is quite important for both an organisation and an employee. By
indulging growth opportunities helps in keeping employees motivated and engaged
towards organisational objectives (Zang and et.al., 2020). For Bliss Hotel Southport,
employees are provided with right training and development equipments so that they can
grow in their career which directly supports in the talent acquisition and retention for
long time.
 Termination and transition: In a company, some of the staff members opts to stay
longer and successful career and some other to be leave. So, offer right termination
improves respect and loyalty of business. In chosen company, by coordinating the
termination effectively, they offer career opportunities in next organisation wherever
employees go.
Create a performance management plan.
Performance management plan can be explained as a process that enables companies to
exploit for their knowledge employees and resources to strategic goals and priorities so that short

term goals can be accomplished and long term aspirations are consistently met effectively and
efficiently. In respect of Bliss Hotel Southport, the performance management plan for the
specific job role of F&B marketing manager is as follows:
 Plan: In this phase, the company established priorities by setting expectations for
employees and indulges right guidance to them. In case of F&B marketing manager, the
key priority is to provide the information of goods and services to the consumers by
making effective marketing plan and tactics.
 Monitor: In the second phase of the PMP, a company and management communicate
with the H&B marketing manager in order clearly communicate the main roles and
responsibilities on weakly basis (Helmold and Samara,2019). For instnace, the priority of
F&B is to promote the consumer experience so it required to do frequent check-ins by
exploiting the concept to gain potential results. Therefore, the management check and
assess the employee performance.
 Review: This is last stage of review in which organisation reviews the performance by
establishing priorities to utilise chances of success. For the chosen company, timelines
are established as per the regulations to accomplish certain objectives and targets for
F&B marketing manager.
Judgements and recommendations.
For the Bliss Hotel Southport, it is suggested that in each of the phase of HR life-cycle,
the key documents which are needed are job description and job specification so that best
candidate can be hired in the company. With the help of these documents, candidate can be
shifted towards their specific jobs roles and duties. For the role F&B marketing manager, HR
specialist must analyse the skills, knowledge and expertise of the particular candidate so that
overall target can be attained.
Specific legislation that a hospitality company has to comply.
In UK, there are various laws, legislations, regulations and codes need to be considered
before becoming a hotel entrepreneur. In respect of Bliss Hotel Southport, some of the main
legislation are discussed underneath:
 Business Names Act, 1985: Under this act, hoteliers need to show a notice that
represents the name of the owner where business must have separate legal entity. Any of
the equipment or stationary made for the Bliss Hotel Southport must also have the name

of owner, contact information and address. It will be also applicable to any invoices for
the products and services, receipts, business letters, accounting information and purchase
orders.
 Trade Descriptions Act, 1968: This law is designed with an aim to safeguard
organisation from displaying their products and services in a misleading and dishonest
behaviour (Farjoun and Machover, 2020). This act made the chosen hotel to be more
truthful and fair in practices and not deliberately misguide the customers or guests into
spending money on a mendacious calm. For example, in order to create marketing
pamphlets or updating the official website of the company, it is essential to ensure that
hotel do not misguide the visitors or guests with wrong information such as about pricing
or facility. Hence, it is an offence if company do not display the fair information to
guests.
 Health and safety at work Act, 1974: In UK, hotels owners or hoteliers needs to take
care of the substances which may cause illness or injury to the employees. For example,
the hoteliers needs to indulge employees with any protective clothing to handle
dangerous substances. Staff members are also protected under this law that they cannot
be needed to do their jobs for excessive work hours which may cause illness from fatigue.
Company's employment and contract law.
In a hospitality company, employment act influences each and every aspect of the
organisation by determined the employees rights in terms of wages, compensation, benefits, age
discrimination, termination process, medical leaves and many more. In addition to Bliss Hotel
Southport, it is abiding employment laws by complying with many rules and regulations in order
to avert any sort of work tribunal claims. For instance, in hospitality sector, any company is able
to set the employees' working hours and medical leaves to coordinate staff members in a proper
way.
An organisation is also gets affected by contract laws in several aspects. Contract law
involved with every transactions whether it is purchase, selling or providing services that sold at
certain range of pricing in particular conditions (Laws, 2019). In case of chosen hotel, they sell
their services in a certain price range and conditions which is also affecting decision-making
process.

Different functional roles within the hospitality sector.
There are range of functional roles within the hospitality industry. In respect of Bliss
Hotel Southport, the main departments are discussed below:
 Food and Beverage Department: It is one of the main and biggest department in the
hotel sector. It mainly covers the restaurants with various shapes and forms. They mainly
focus on serving customers with breakfast, brunch, lunch as well as dinner. They also
include other entertainment activities such as music and dance performances (Su, Chen
and Wang, 2019). Hence, this helps organisation to generate more amount of profit.
 Maintenance Department: It is the main part of running the hotel in a proper way. It is
important for both hoteliers and customers. This department is interconnected with
finance department. This mainly focuses on presenting and furnishing the hotel to the
customers so that they feel more connected to the hotel.
 HR Department: In addition to chosen hotel, it has an effective HR domain in the
business that does the job of maintaining the reputation of business. It also covers range
of activities such as interviewing, advertising job requirements, hiring, training and
developing and more.
Different communication methods and levels.
Communication is a process of transferring information or message from one person,
group or place to another. There are various of forms of communication that takes place in an
organisation. In addition of Bliss Hotel Southport, some of them are discussed below:
 Internal communication: This kind of communication takes place within a company or
group of individuals, between employer and employee. It could be written, oral, audio-
visual, visual, upward or downward and many more. They mainly used to serve the
message to instruct, inform, develop, entertain, lead and many more in the working place.
 External communication: It flows outward. It includes people such as potential
customers, public, competitors, government, media and more (Waisbord, 2019).
Demonstrations, business meetings, letters, telephone calls and more are some of the key
examples used in hotel.
 Formal communication: It flows message through formally established channels of
communication. It may be oral and written. Customer meets, staff meetings, branch
manager conferences and many more. It follows a well established hierarchical system.

 Informal communication: It is unstructured in manner. This work well in smaller firms.
It has no rigid hierarchical tiers. It takes place through informal talks, conversations,
chats and many more.
Critique a coordination and integration within a business entity.
It is analysed that both coordination and integration is an essential part of the business
entity that shows the ability to make right choices for the organisation. It helps Bliss Hotel
Southport to make relevant strategies by effectively communicate with team members. When
more employees make their contribution in the decision-making process there will be chance of
success (O’Rourke, 2019). It also helps in the better involvement of employees in the business.
For example, it supports the management to limit competition, indifferences among employees,
delays in projects and more.
Analyse the effectiveness of different methods of communication.
It is analysed for the Bliss Company that it can use different types of communication
methods in the business to transfer message to another person. In order to share information to
clients, customers, employees, public and more, the company can use written communication
method as it is more relevant for accuracy. When employees perform their duties as per the
orders provided by their seniors, it is helpful in the better goal achievement.
CONCLUSION
On the basis of above report, it is concluded that hospitality business is vast in nature. It
mainly emphasis on the enjoyable services to the customers who come in the premises. For the
hotel organisation, it is essential to keep records of the transactions so that profit and loss of the
business can effectively be identified. HR professionals also overlook the methods to recruit
people who will be beneficial for the company to grow in the market. A company can use
different communication methods to transfer the message within or outside the business.

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