Hospitality Business Toolkit: Managing Finance, HR Life Cycle, Legal Considerations

The hospitality business toolkit.

Table of Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY 1....................................................................................................................................3
Financial transactions in hospitality business and source documents for recording the process.
.....................................................................................................................................................3
Principles for managing and monitoring financial performance of the business. ......................3
Principles of double entry book keeping. ..................................................................................4
Trial balance stating steps used and purpose of trial balance ....................................................5
Types of cost and their management for improving the financial performance. .......................5
Importance of accurately recording the financial transactions with accounting principles........6
ACTIVITY 2....................................................................................................................................7
Reviewing stages of HR Life cycle.............................................................................................7
Evaluating each stage of HR life cycle.......................................................................................8
Develop performance management plan.....................................................................................9
Judgements and recommendations............................................................................................10
ACTIVITY 3..................................................................................................................................10
Specific legislations that company comply and adhere in daily transactions...........................10
Company employment and contract law impact on business decision-making........................11
Examine potential implications of regulations..........................................................................11
Critical reflects of ethical issues...............................................................................................12
ACTIVITY 4..................................................................................................................................12
Covered in PPT.........................................................................................................................12
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality business is also known as hospitality industry or the tourism industry. It
includes a broad category of business fields like services industry like business including, event
planning, restaurants, theme parks, cruise line, transportation and the additional fields. Many of
the manager in hospitality are required to focus over the financial side also along with the other
hospitality sides. Managers are required to have an effective control over the activities being
carried on within the organisation to become successful and achieve the required growth.
Present report is about the Fit & Fine restaurant. It will cover the methods of managing the
finance and recording the transactions for minimising the costs within company. It will provide
about the Human resources life cycle in the HR strategy context. Further this will also cover the
understanding about the legal and ethical consideration in hospitality business. Importance of
coordination and integration of different functions of department will be explained in this report.
ACTIVITY 1
Financial transactions in hospitality business and source documents for recording the process.
Fit and fine restaurant have all the business transactions like any other ordinary firm. It
mainly has purchases of raw materials and sales of serving and finished products. All the other
transaction are incurred in accordance with the business requirements. Source document for
recording the transactions are cash registers, bank statements, purchase and sales invoices, time
cards, receipts of credit card, invoices and receipts of various expenses. The accounting process
followed is it first records the transaction in regular books such as sales day book, purchase day
book, cash books by passing a journal entry. It transfers the amount to its respective ledger
account (Sangster, 2016). After the accounts are closed company prepares a trial balance. From
the trial respective financial reports are prepared like income statement, statement of financial
position and cash flows.
Principles for managing & monitoring the financial performance of organisation.
Principles for financial performance management.
 Spending less from what is earned. Business should save money that will help it in
improving its performance.

 Fit and fine by preparing the budgets that are reasonable, realistic and attainable helps in
keeping the costs under control.
 Putting the money in productive activities and investing them in return generating
sectors.
 Debt should be limited to income producing assets that will help the organisation to grow
(Van Horne James, 2017).
 Understanding risks that can influence the business and its success.
Monitoring financial performance
 Financial performance can be monitored by preparing financial statements.
 Preparing the trial balance of aged debtors.
 Measuring the financial performance using Key performance indicators.
 By preparing the statements for working capital and financial ratios.
 Analysing cash flows by preparing cash flows and fund flow statements (Cornett, and
Saunders, 2016).
 Creating dashboards for analysing the financial performance of Fit & fine on periodical
basis.
Principles of double entry book keeping.
In this system every transaction involves 2 aspect that are debit and credit. Two parties - Main principle of the double entry book keeping says that for each debit
there should be a credit of equivalent amount. For each credit, there should be a debit of
the equal amount. In this system for each transaction one account has debit balance &
other account has credit balance. (Double Entry Book Keeping, 2019). Receiver & Giver – In this every transaction have one receiver and one giver. Equal amount of exchange – The money given by party in a transaction should be equal
to amount received. Separate entity – In this businesses are treated separate from its owners (Kuter,
Gurskaya and Bagdasaryan, 2019).
 Results – Under this system totals of debit side should be equal to totals of credit.