The Hospitality Business Tool Kit

This document provides a comprehensive guide to managing financial transactions, HR lifecycle, legal and ethical considerations, and more in the hospitality industry. It covers topics such as principles of managing financial performance, principles of double entry bookkeeping, stages of HR life cycle, legislation in the hospitality sector, and the impact of ethical issues on regulations and principles.

THE HOSPITALITY
BUSINESS TOOL KIT

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Activity 1................................................................................................................................3
Activity 2................................................................................................................................7
Activity 3................................................................................................................................9
Activity 4..............................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In order to satisfy the customer base, the hospitality sector encompasses the broader spectrum of
fields such as housing, beverages, event management, travel, tour and much more (Caliandro and
Gandini, 2016). This is one of the most special industries that relies heavily on profit and
recreation. The project report is based on an own managed business that Ritz hotel, located in
London and provide food products such as salads, juices, smoothies etc. The report is categorised
into different activities. The activity one covers information about way to manage financial
transactions in hospitality sector. Activity second is about human resource lifecycle in the aspect
of HR strategy. In the third activity, impact of legal and ethical consideration on hospitality
business is covered.
MAIN BODY
Activity 1.
An introduction to financial transactions of hospitality business.
In the aspect of above mentioned business, there can be below mentioned business
transactions which are as follows:
 Sales- It is related to selling goods and services to customers and getting amount in return
from them. In above restaurant, they sell their food products and get funds.
 Purchase- This is related to acquiring goods by paying a sum of amount. In the above
restaurant, this transaction occurs when they purchase raw material to produce juice and
salads (Sniukas, Lee and Morasky, 2016).
 Receipts- A receipt is a record that recognizes that a person gets money or goods in
exchange after a sale or any other transaction or service was delivered. In the above
enterprise, they do this transaction and get money from customers in regards to credit
sale.
Principles of managing and monitoring financial performance.
This is essential for businesses to manage their financial performance in an effective
manner. For this purpose, there are different types of principles and some of them are
mentioned below in such manner:

 Preparation of inventory records- Industries are investing in higher cost equipment and
machinery. They must keep records of their inventory levels for this reason. By means of
these statistics, the volume of inventory which is used in goods is easier to define
(Helminen,and et.al., 2016). This also helps to measure different forms of factors such as
product turnover etc. In the aspect of above restaurant, it is essential for them to record
their stock such as raw material for food products.
 Preparation of fund and cash flow statements- Fund and cash flow are forms of reports
that provide details regarding how much cash falls into an enterprise. These statements
are important for companies in order to become aware about cash position after end of an
accounting period. In the above restaurant, these statements are helpful for their managers
in order to know about cash position.
 Preparation of working capital statements and financial ratios- It is also a main principle
for managing financial performance. This is related to producing working capital
statement and by help of it, managers can gather information about availability of current
assets and liabilities.
 Preparation of key financial statements- In addition, preparation of financial statement is
also a main principle for managing financial performance. Under financial statements
P&L, balance sheet etc. are included. By help of these statements, managers can evaluate
actual financial position. In the above restaurant, they apply this principle for better usage
of available resources and for effective financial management (Van der Wagen and
White, 2018).
Explain the principles of double entry bookkeeping system of debits and credits.
Double entry bookkeeping system- As per this accounting system, amount should be
reported in at least two accounts for each corporate activity. For all transfers the sums inserted as
debits must also match the sums inserted as credits in the dual-entry system (Hanrahan, 2017).
Principle- The main principle behind the system of dual-entry is that each debit is equivalent in
the sum of the same money and each credit is equivalent in the sum of money to the same
amount.

Particulars Debit Credit
Cash in hand 7580
Petty cash expense 800
Cash sale 2250
Credit card sale 12500
Free issue 250
New kitchen equipment 3560
Food purchase 7850
Beverage purchase 12540
Purchase return 254
Discount received 2611
Credit note 800
Rent 1600
Utility 286
Function and event (Income) 7005
Wages 4698
Debtors 1050
Till shortage 366
Total 33000 33000
Produce a basic Trial balance using a sample data.
Trial balance- This can be defined as a list of all ledger accounts mentioned in ledger of
a business entity.
Particulars Debit Credit
Bank loan 12540
Cash in
hand 10840
Capital 16270

Rates 1750
Trade
creditors 18640
Purchases 13822
Sales 6640
Sundry
creditors 1150
Debtors 12650
bank loan
interest 1550
Other
expenses 13378
Vehicles 1250
Total 55240 55240
Purpose of trial balance – The main objective of trial balance is to assure that all entries made in
a company’s general ledger are completely managed. It lists the closing balance in every general
ledger account.
Example of profit and loss account.
ACTUAL PROFIT OR LOSS STATEMENT
PER UNIT TOTAL
£ £ £ £
SALES 50 800000
COST OF PRODUCTION
DM 10 190000
DL 20 380000
VOH 5 95000
FOH 5 95000
40 760000
OPENING INVENTORY 0
CLOSING INVENTORY -120000
COST OF SALES 40 -640000
STANDARD PROFIT 10 160000

ADJ. FOR UNDERABSORPTION -5000
BUDGETED PROFIT 155000
Importance of accurate recording of transactions in line with accepted accounting
principles.
This is important to record transaction accurate so that actual financial position can be
assessed. Below some key importance is mentioned in such manner:
 Effective accounting records helps as backup for all income and expenses occurred
during time of audit.
 If a company records their financial transaction in an effective manner, then auditing
process will be easier and shorter.
 Accurate recording of transactions minimises possibility of fraud and misconduct.
 Helps in better analysis of financial performance.
Conclusion
In the end of this activity, it can be concluded that better financial management is too
crucial for companies. It is so because by help of this, managers can become aware about their
actual financial position and can take corrective actions. As well as monitoring of financial
performance is also essential. In order to do so there are a range of principles which should be
applied.
Recommendations
 Companies should record their transaction in a systematic manner.
 All the principles of accounting should also be applied.
 Regular monitoring of financial performance is also essential.
Activity 2.
Different stages of HR life cycle.
By comparison to many other corporate units, human resources have a clear time cycle.
HR's life cycle consists of various stages from which an employee passes thru, and HR's function
during this process. Growing stage of this life cycle has its own special challenges, possibilities

and benefits. In this activity a specific job role has been selected that is of accountant in above
mentioned restaurant. Below stages of HR life cycle are mentioned in such manner:
 Recruitment- The stage explains how a company hires suitable candidates to expand its
market (McGuire, 2016). Through turnover, growth and efficiency the decision to recruit
plays a significant role. The recruitment of an appropriate applicant in the business is a
challenging job as it requires a lot of research and evaluation in order to achieve
development and profitability.
 Education- This specific phase entails an overall staff development cycle; in which they
are prepared to begin the training process from the point in which applicants obtain a new
position in order to fulfil their job roles. Therefore, training and education are relevant
with each other.
 Motivation- This is a key stage of HR life cycle which is related to influencing
employees so that they can work with full of efficiency and effectiveness. There are
different kinds of ways to motivate employees such as financial and non-financial
benefits.
 Evaluation- HR managers are accountable for assessing the output of their workers and
identifying the areas in which they can improve to make them more competitive in order
to achieve a good market place. The stage focuses on different aspects, such as holding
success talks focused on facts and figures.
 Celebration- This is the final stage of the human resources process, giving managers and
stakeholders a chance to celebrate their progress. HR manager expresses gratitude by
giving their workers numerous advantages.
Importance of HR in supporting growing and retaining.
Human resource manager is key person in order to retain employees in an organisation.
Herein, below importance of HR is mentioned below regards to above mentioned job role:
 Role in supporting- HR helps in order to support their employees. This is so because HR
knows about each employee’s issues. Such as for role of accountant, HR can support by
bringing liable and flexible policies (Nour, 2017).
 Helps in retaining- In addition, HR helps in retaining employees. It is so because HR can
discuss about grievances of employees and can guide accordingly.

Develop a performance management plan to support the specific job role.
In the aspect of above restaurant, performance management plan is mentioned below in
such manner:
Plan Monitor Review
Plans will be drawn up to
define job goals and
management skills will be
accessible according to
schedule. There will be
consideration of every sort of
scope of growth and training.
Planning research which must
be carried out and tracking of
training programs. This helps
to reduce variability and to
take corrective steps on time.
The implementation of a
strategy and proper control of
the strategy would help to
accomplish all aspects of the
plan. Quality assessments will
be taken in a fixed period to
reach the project completion
Activity 3.
Identify specific legislation(s) that hospitality organizations have to comply and adhere to,
in the daily transaction of business using examples to explain where applicable.
Working in a hospitality provides the business organizations with a range of rules and
regulations. Many regulations applicable in the sector are as continues to follow:
 Health and Safety at Work Act, 1974- This Act is implemented to insure that and
corporate entity during operations ensures that measures are taken to ensure better health
and safety. In order to ensure the protection of entry and exit at work is necessary, all
efforts to ensure a healthy working atmosphere, clean and secure potable water must be
considered (Jarratt and et.al., 2019).
 Minimum Wages Act, 1998- This act was implemented to prevent people from suffering
from a wage that is not enough and sufficient according to the job done. The British
government sets a minimum level of remuneration for various age groups so that equal
wages from corporate companies are made to staff.
 Equality Act, 2010- In order to ensure safety of workers from prejudice in every way,
this act was implemented into the business climate. Strict standards are extended to

businesses at each point for the follow-up of anti-discrimination laws, and there is no
allowance for discrimination.
Company’s employment and contract law impact on business decision-making.
The implementation of various laws and regulations influences business decisions. The
application of labour law impacts Ritz Hotel decisions because human capital is an essential
business tool. In cases where decisions have adverse consequences on human capital, solutions
to resolve particular problems are avoided or established. Employees are allowed to engage in a
civil proceeding to avoid enforcement with labour law, such as wrongful dismissal. Contract
legislation impacts business decisions, since it is important to take care of laws and regulations
that apply in compliance with a contract (Moratis, Melissen and Idowu, 2018). For example, the
hotel in Ritz has signed a contract for the provision of a hospitality facility to an organization.
Potential implications of regulations on standards.
 Data Protection regulations- All hospitality organizations should make fair efforts to
support customer data. The Data Protection Act 1998 applies for this reason. This
legislation is implemented in order to assure consumer protection.
 Fire Safety Regulations, 1988- The Ritz hotel represents a large number of consumers
and must comply with the legislation in order to safeguard consumers and workers.
Impact of ethical issues of regulations, legislations and principles.
The ethical issues are numerous and suggested by the relevant regulations and legislation
to strengthen the employment contract within the company. Some of the legal problems, for
instance, is the firing of workers (Nelson, 2018). When the individual employee performance is
not acceptable and their work is denied, the applicable law must be enforced to behave ethically.
That will help to improve the Ritz Hotel contract of employment, as the job and role of all the
workers in the business will be more protected. Another condition is that employee promotions
in multiple positions must be based on clear rules and standards in order to justify their jobs
under the law.

Activity 4.
Covered in PPT
CONCLUSION
It can be concluded that there are a range of practices in the hospitality sector which support
the global economic growth. Every cash transaction must be properly reported in proper
records, helping to control operating costs and maximizing overall competitiveness. The
Ritz hotel's human resources manager must ensure that successful and highly competent
staff can provide the most efficient customer support. As well as, in order to preserve an
ethical work climate, that specific legislation and regulations must be complied with by the
respective hotel. This also ensures that worker and consumer information is safeguarded at
any expense to create trust in hotel policies and procedures.

REFERENCES
Books and journal:
Caliandro, A. and Gandini, A., 2016. Qualitative research in digital environments: A research
toolkit. Routledge.
Helminen, P.,and et.al., 2016. Designing user innovation toolkits: exploring the interrelation
between solution space and module library. International Journal of Design Creativity
and Innovation. 4(3-4). pp.162-180.
Hanrahan, J. ed., 2017. Tourism and Hospitality Research in Ireland. IT Sligo.
McGuire, K. A., 2016. The analytic hospitality executive: implementing data analytics in hotels
and casinos. John Wiley & Sons.
Nour, D., 2017. Co-Create: How your Business will profit from innovative and strategic
collaboration. St. Martin's Press.
Jarratt, D., and et.al., 2019. Developing a sense of place toolkit: Identifying destination
uniqueness. Tourism and Hospitality Research. 19(4). pp.408-421.
Moratis, L., Melissen, F. and Idowu, S. O., 2018. Sustainable Business Models. Springer.
Nelson, G. S., 2018. The analytics lifecycle toolkit: A practical guide for an effective analytics
capability. John Wiley & Sons.
Sniukas, M., Lee, P. and Morasky, M., 2016. The art of opportunity: How to build growth and
ventures through strategic innovation and visual thinking. John Wiley & Sons.
Van der Wagen, L. and White, L., 2018. Hospitality management. Cengage AU.