Principles for managing and monitoring financial performance of a business

The Hospitality Business
Toolkit
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Principles for managing and monitoring financial performance of a business.................3
P2 Application of double entry book-keeping system in order to record sale and purchase
transactions in a ledger...........................................................................................................4
P3 Trial Balance.....................................................................................................................6
TASK 2............................................................................................................................................8
P4 Different stages of Human Resource life cycle.................................................................8
P5 Performance Management Plan........................................................................................9
LO 3...............................................................................................................................................10
P6 Legislations that organisations in the hospitality industry have to adhere to..................10
P7 How do company, contract and employment laws influence the process of decision making
in the hospitality industry.....................................................................................................11
LO4................................................................................................................................................12
(Covered in PPT)..................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
The hospitality industry comprises of different sectors like lodging, food and beverage
services, accommodation, travelling, transportation etc. Organisation taken for this report is
Power Fit juice centre which is located at Moorgate in London (Nayak and Taylor, 2018). The
business serves a large variety of smoothies and blended juices along with healthy salads to
people who are conscious about their health. Another organisation chosen in the report is
Marriott International, a hospitality organisation that was founded by J.W. Marriott and his wife
Alice Marriott. Topics covered in the report are principles of monitoring and managing financial
performance, the different stages of a Human Resource life cycle and the different legislations
that organisations in the hospitality industry have to adhere to.
LO 1
P1 Principles for managing and monitoring financial performance of a business
Business transactions is the crucial events that are measurable in nature in terms of
money and directly affect business activities (Mariani and et. al., 2018). In context of Power fit
juice centre they use various kinds of business transactions in order to gain important
information while aimed to open the new gym.
Different types of business transactions:
 Sales: Sales are the transactions that required to organisation for obtaining goods and
services for accomplishing goals of organisation. In context of Power fit juice they record
sales transactions in accounting journal for gaining important information.
 Purchase: Purchase are transactions that are potential by business for obtaining goods
and services needed to made results in cash (Kiehne, 2018). In context of Power fit juice
to access the purchase information in cash result in debit to the inventory account is
recorded.
 Receipts and payments: Receipts are transactions that business pay while delivering the
products and services. In context of Power fit juice they record the receipt transactions
that is majorly income of respective organisation in journal for seller as debit to cash. On
other hand payments that business received money for their products. It kept in
accounting journal in order to gain important information from it.
Tools or methods to evaluate financial performance:
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 KPI: KPI is a measurable value provider tool which elaborates about the way an
organisation can achieving their business objectives (Jasnoff and Sheikh, 2019).
Organisations such as Power fit juice uses it at multiple level as it deals in many
businesses to measure their success factor by setting targets.
 Return on investment: ROI helps to measure the profits or losses occurred by
organisation from their investments related to the money they invest in their business. In
context of Power fit juice they presently deals in the juice and aimed to expand their
business in Gym so it is very important for them to avail respective tool to measure their
return to carry out business activities potentially.
P2 Application of double entry book-keeping system in order to record sale and purchase
transactions in a ledger
The double entry book-keeping method of transactions states about that amount of business
transcribed in the nominal of two accounts. It states about that overall debit is equal to credit side
of balance.
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