Principles of Monitoring and Managing Financial Performance in Hospitality Sector

HOSPITALITY
BUSINESS TOOLKIT

Table of Contents
TASK 1............................................................................................................................................4
P1. Investigation of principles of monitoring and managing financial performance.................4
P2. Apply the double entry book-keeping system of debits and credits to record sales and
purchases transactions in a general ledger..................................................................................6
P3. Produce a basic trial balance applying the use of the balance off rule to complete the
ledger...........................................................................................................................................6
TASK 2............................................................................................................................................7
P4. Review various stages of HR life cycle that apply to a specific hospitality job role & its
importance for developing and retaining of talent......................................................................7
P5. Development a performance management plan ..................................................................8
TASK 3..........................................................................................................................................10
P6. Identify specific legislations that a hospitality organisation has to comply.......................10
P7. Describe that how company employment and contract law has a potential impact on the
business decision making..........................................................................................................11
TASK 4..........................................................................................................................................12
COVERED IN PPT...................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Hospitality sector is one of fastest growing sector of business which consist of
departments of foods & beverages, lodging, accommodation etc. success of business is depend
on leisure time and activities. This department must have basic understanding of various
activities and linking together. In this report a new drinks and salads outlet named as “Healthy
life”. This is a new outlet that is based on changing preferences of people towards healthy
lifestyle instead of junk and fast foods (AWADALLAH, and SAAD, ., 2018). It is very
important to develop a basic understanding of principles of managing financial performance with
helps of trial balance, double entry system, review of different stages of HR cycle, specific
legislations for hospitality organisations, laws related to employment contract. Further there is
explanation of roles of hospitality sector and methods of coordination, communication &
monitoring applied in a organisation.
TASK 1
P1. Investigation of principles of monitoring and managing financial performance
To evaluate performance of business organisation there are many critical aspects that
have to be considered by a organisation in hospitality sector (Banoobhai-Anwar,2016). There are
different ways of monitoring & managing the overall financial performance of present
organisation as focused below:
Preparation of inventory records: Keeping adequate records of inventory is very
important for business in tracking of overall wastage of resources as it leads to pile up of stock. It
also assist in disclosing requirements of raw materials and calculation of input & output ratios.
Preparation of cash glow statements: Cash glow statements are most essential part of
every business organisation as they are type of liquid assets available with business. They are
useful in making justification between notional earnings & actual earnings for a organisation.
Various business transactions in case of Healthy life:

Particulars Debit Credit
Bank loan 12000
Cash in hand 11700
Capital 13000
Rates 1880
Trade creditors 11200
Purchases 12400
Sales 14600
Sundry creditors 1620
Debtors 12000
bank loan interest 1400
Other expenses 11020
Vehicles 2020
52420 52420