Principles for Monitoring and Managing Financial Performance in the Hospitality Business

The Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Detailed analysis and evaluation of the principle that are essential for monitoring and
managing financial performance............................................................................................3
P2. The application of the double entry system bookkeeping of debit and credit so as to record
purchases and sales at a given period of time.........................................................................4
P3. Examination and evaluation of the trial balance in an appropriate manner.....................9
TASK 2............................................................................................................................................9
P4. Review the different stages of the HR life cycle applied to a specific hospitality job role
and their importance for retaining and developing talent.......................................................9
P5. Identification and development of a performance management plan for hospitality sector
job.........................................................................................................................................11
TASK 3..........................................................................................................................................12
P6. Evaluation of specific legislations that all the companies in the hospitality sector has to
comply with so as to sustain in the industry for a longer time period..................................12
P7. Examination of the company, employment, and contract law that impacts on the working
of the business......................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Hospitality sector is one of the most important as well as crucial sector for each and every
country due to its size and its operation as it can help in the increase of the economy of that
nation and that too within a limited time frame (Parris and McInnis-Bowers, 2017). In this report
there is a detailed discussion of a firm that is East London Catering, which is operational in the
UK and is operating on a huge scale and has many outlets that provide optimum customer
experience resulting in its profitability in the long run. Apart from that this report covers topics
such as principles of managing and monitoring financial performance, double entry,
bookkeeping system of the debit and credit, trial balance, etc. Further this report includes
evaluation of different stages of HR life cycle, developing a performance management plan, and
things that hotel industry has to comply so as to perform smoothly in the industry.
TASK 1
P1. Detailed analysis and evaluation of the principle that are essential for monitoring and
managing financial performance
Financial performance is one of the most crucial aspects as it helps in determining the
performance of the firm in terms of generating revenues from the assets that are available with
the company. This helps in reducing the wastage of money as well as efforts that carry a lot of
value in the current market scenario that is highly dynamic and competitive in nature. East
London Catering records all the transactions that are done in the company on a daily basis so that
all the things can be managed in an accurate and precise format which can add value to the firm
in the long run and some of the principles that it follows are explained below in detail-
Maintaining proper record of stock- The firm that is East London Catering maintains all
the records in an appropriate manner so that it can help in the proper allocation and allotment of
all the resources that are available with the company in an impactful way.
Making key financial statements- East London Catering make financial statements after
analysing all the aspects in a detailed manner so that all the unwanted expenses can be reduced
which can result in increased profitability for the firm in the industry in which it is operational
(Triani, 2019).

Evaluating overhead cost- Overhead costs are very important for a firm and East
London Catering keep a tab on all its additional expenses so that it can be reduced in the future
which can further result in the increased market value of the company in the long run scenario.
P2. The application of the double entry system bookkeeping of debit and credit so as to record
purchases and sales at a given period of time
Double entry system is one of the most critical aspects in the business as it is related with
making necessary entries in two books so that it can match in the end. The two sides of the
account are called as debit and credit and the amount that is withdrawn or given to sellers due to
sales comes in debit part while the earnings that are received comes in credit part. The company
and the owner are separate legal entities and it is also applied to the firm that has been chosen
above. The accounting equation that follows here is Capital= Assets- Liabilities.