Principles of Monitoring and Managing Financial Performance in Hospitality Industry

HOSPITALITY
BUSIENSS TOOLKIT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Determine the principles of monitoring and managing the financial performance..............1
P2. Application of double entry book keeping system in order to record sales and purchase
transactions in general ledger......................................................................................................2
P3. Develop a basic trial balance by using balance off rule to complete the ledger...................3
TASK 2............................................................................................................................................3
P4. Analyse the various stages of HR life cycle which are applied on the specific job role and
also describe its importance for retaining and developing talent................................................3
P5. Produce a performance management plan by applying techniques to eliminate negative
behaviour and overcome various problems of staff retention.....................................................5
TASK 3............................................................................................................................................6
P6. Analyse specific legislation which suitable organisation need to comply............................6
P7. Analyse how the company employment and contract law has suitable impact on the
decision making of business........................................................................................................7
TASK 4............................................................................................................................................8
Covered in PPT...........................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Hospitality industry relies under wide category which include various services such as
lodging, food, drinks and addition to this, some of them offer event planning, transportation,
cruise line and so on. In hospitality industry, a leader is must which helps their employees and
staff in guiding and directing them for their future success and for this, they examine each and
every factor which helps in achieving growth and success (Bowie and et. al., 2016). This report
is based on Simpsons Beverages which is a UK based company and deals in healthy drinks such
as healthy salad juice, smoothies, drinks and so on. In addition to this, it is going to focus on few
areas such as managing financial activities and records and also assess the management of HR
life cycle which is useful in analysing the strategies of HR. In addition to this, it also determine
the influence of legal considerations on hospitality sector and also explain the importance of
coordinating various functions of hospitality industry. At last, the purpose of this report is to
offer opportunities to spread business awareness and also enhance their sales in relation with
healthy drinks.
TASK 1
P1. Determine the principles of monitoring and managing the financial performance
To manage the performance of business many important questions are asked which are
required to be answered such as is business run in smooth manner? Success or fail? Suitable
drivers for growth etc. for this, there are many important methods in order to manage the
financial performance of an organisation which is mentioned as underneath: Preparation of inventory records: There are many businesses which greatly influenced
the investments, machinery and equipments (Mariani and et al., 2018). For this, they also
maintain suitable inventory records as it helps in providing relevant information about the
stock and basic requirements in order develop final product and also analyse the wastage
of any machinery and equipment at any point of time. It will also tell the need of
purchasing raw materials and also analyse the stock turnover and various ratios. Preparing key financial statements: It is the basic report in which every organisation
need to prepare financial statement and balance sheet. It is not only the significant
indicators in order to offer suitable performance to business but they also need enactment.
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They also provide an overview of the financial conditions of business and also depict that
owners came to know regarding that the account of company is fare or not.
Business transaction
P2. Application of double entry book keeping system in order to record sales and purchase
transactions in general ledger
Double entry and book keeping system states the business transaction in order to record
the amount in at least two accounts. This system need all kind of relevant transactions in which
amount enter as debits and are equivalent to the entered amount as credits (Jarratt and et. al.,
2019). Its primary principles are considered as under:
 The book keeping records include appropriate tally of income of business which consider
transactions and sales as it results in payment which can be either done on priority basis
or at some other point in future.
 Classifying these expenses into different sections such as materials, capital, promotion
and advertising.
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