Managing Finance and Recording Transactions in the Hospitality Sector

This assignment explores the principles of managing finance and recording transactions in the hospitality sector. It discusses the types of source documents and recording processes used in the industry. It also examines the potential impact of legal and ethical considerations on a hospitality business. Additionally, it explains the importance of coordinating and integrating various functions of departments within the hospitality sector.

INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
Investigate how to manage finance and record transactions to minimise costs responsibly
within the hospitality sector..........................................................................................................3
Task 2...............................................................................................................................................8
Assess how to manage the Human Resources lifecycle within the context of HR
strategy…………………………………………………………………………………………....8
Task 3...............................................................................................................................................8
Illustrate the potential impact of legal and ethical considerations on a hospitality
business………………………………………………………………………………………………….12
Task 4..…………………………………………………………………………………………...14
Explain the importance of coordinating and integrating various functions of departments
within the hospitality sector .......................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES………………..…………………………………………………………………16

INTRODUCTION
Hospitality sector conduct numerous activities that need to be managed by
management so set goals and objectives can be attained easily (Chung and Chung, 2018).
Hospitality industry includes hotel services, planning, lodging, theme parks, travelling,
transportation and many more all this directly or indirectly attracts customers to be a part of
the services. In order to raise the customer base organization need to serve goods and services
according to their expectation level. In the competitive market place there are many
organization who are offering hospitality services. It is successful in pulling customers
towards their entrainment services because of its unique strategies adopted by the
management . Healthy Rom is a new business which is located in London, UK. This new
enterprise is specialist in blended juices, smoothies and salads. This assignment includes,
distinguish phase of human resource life-cycle. Various ways for managing monetary and
recording transaction are deeply studied in order minimise cost. Additionally, influence of
lawful and moral consideration on hospitality enterprise is examined properly. However,
importance of distinguish functions and their integration is determined for the attainment of
best results.
ACTIVITY 1
An introduction to the financial transactions of your hospitality business by
identifying the types of source documents and the recording processes
you follow.
In the global market finance is the backbone of organization as with the help of this
business activities can be conducted smoothly. Health Rom is a eating house that is currently
launched in London and serve nutritious drinks to their targeted customers. This restaurant is
providing smoothies, salads and juices by this large market share can acquired in the global
market. Types of source documents identification and recording processes, document are,
Cheques received , petty cash vouchers, purchase Invoice and sale invoice they are explained
as under:
Cheques received: Financial transaction can be recorded with the help of cheques
received from the client. By this amount of cash inflow and out flow can be recorded easily
as well as management is able to take better decision in context of form's growth and
development.
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Petty cash vouchers: It is a small piece of paper which is used to document a
payment from petty cash fund through this financial transaction can be ascertained because it
provide solid evidence at the timer of reconciliation of the amount which is remaining in the
petty cash fund. Management with the help of this can assure that capital in petty cash fund is
not misused in any manner.
Purchase invoice: It is a written document given to buyer by its seller in order to
provide payment in the specified time and also specifies the type of goods purchased. On the
other hand financial transaction can be recorded by this because it proves to the management
what product was purchased and how much was paid for it and what is the left amount.
Sale invoice: It is used by firm in order to communicate the client regarding their
amount due in exchange for product and services which have been sold. This provide legal
protection to both seller and buyer.
The cash inflow and outflow is monitored by finance manger of the company by using certain
information which are stated below:
Financial transaction: Here, a agreement is carried out between buyer and seller so
that payment of assets can be exchanged (Farrington and O’Gorman, 2018). It is a financial
dealing that take place among purchaser and marketer so as to exchange their assets. On the
other hand for Healthy Rom the monetary transaction for both buyer and seller is healthy
food and accommodation for which customers are paying. Whereas, for seller is selling out
the high standard healthy juices and food to their potential customers over the years. The
important source document needed is bookkeeping and accounting process. This is because
all these provide evidence of financial transaction conducted in the firm. Additionally,
finance manger of the firm can record daily transaction which will assist them to make
statement.
Investigate (look into systematically) the principles of managing and
monitoring financial performance of your business.
In the open market place cretin principles are adopted by Healthy Rom because they
aid firm to monitor and handle their monetary presentation (Walliman, 2017). The principles
of handling and motoring monetary presentation of Healthy Rom are explained as under:
Principle of risk and return: Heathy Rom is benefited by this principle because
through this top level management and investors are able to take right decision on
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investments. It directly helps in examining risk and return of the business project which aid in
handling cash amount and return on investments.
Diversity Principle: This particular principle is adopted by Healthy Rom in the
global market because it directly or indirectly assist in reducing the risk level by effectively
handling the portfolio. Here, organization's finance manger determine the level of threats and
risk which can be raised in the coming years and formulate strong strategies in order to
overcome them.
Explain the principles of double entry bookkeeping system of debits and
credits, using a standard data from your operations.
Principle of Double Entry Bookkeeping System: In an organization double entry
bookkeeping system is used by accountant in order to record the day to day tractions taking
place in the working premises (Foris and Foris, 2018). Credit and debit is the the two base of
this principle that aid in tackling all monetary related information. Double entry bookkeeping
system can be calculated as,
Assets= Liabilities + Equality
Example: Blended juices and smoothies are purchased on credit from the shopkeeper. In this
case, assets is debited for a specific amount and equal amount of liability is credited. It is the
main principles of double entry system where one is debited and other is credited.
Produce a basic Trial balance using a sample data, stating the steps used
and purpose of the Trial Balance.
Ratio Formula Particulars 2017 2018
Gross profit
margin
Gross profit / net
sales *100
Gross profit 250000 280000
Net sales 650000 700000
Gross profit
margin ratio
38.46 40
5

Ratio Formula Particulars 2017 2018
Net profit margin
ratio
Net profit / net
sales *100
Net profit 30000 45000
Net sales 650000 700000
Net profit ratio 4.62 6.43
Mark up ratio Gross profit /
cost of goods
sold *100
Gross profit 250000 280000
Cost of goods
sold
400000 420000
Mark up ratio 62.50 66.67
Return on capital
invested
Net profit /
capital invested
*100
Net profit 30000 45000
Capital invested 520000 565000
Return on capital
invested
5.77 7.96
Return on assets Net profit / total Net profit 30000 45000
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Ratio Formula Particulars 2017 2018
assets *100
Total assets 600000 640000
Return on assets 5 7.03
Return on equity Net profit /
shareholder's
fund *100
Net profit 30000 45000
Shareholder's
equity
435000 485000
Return on equity 6.90 9.28
Current ratio Current assets /
current liabilities
Current assets 155000 165000
Current liabilities 80000 75000
Current ratio 1.94 2.20
Acid test ratio Quick assets /
current liabilities
Quick assets 65000 75000
Current liabilities 80000 75000
Acid test ratio 0.81 1
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Ratio Formula Particulars 2017 2018
Debt ratio External
liabilities /
internal liabilities
External
liabilities
165000 155000
Internal
liabilities
435000 485000
Debt ratio 0.38 0.32
Capital employed
Total assets 600000 640000
Less current liabilities 80000 75000
520000 565000
Trial balance and its step are illustrated as under:
Trial balance introduce as a book keeping worksheet or general ledger account that
are covered in ledger of the business organization. It is used by the business associates in
their organization because it involves name of each nominal ledger account and value of
ledger balance. By this management is able to gain productive results as compare to rivalry
prevailing in the global market as well as they are capable enough to manage financial
information. In the competitive market place firm prepare trial balance because it ensures
that all the business activities like ledger are appropriately managed. On the other hand
financial statement is formulated by using all the entries. By this chances of error is reduced
to a large extent and monetary value in the company is utilized in much better way (Foster
and Carver, 2018).
Trial balance of Healthy Rom by involving income and expenses are stated as under:
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Particulars 31/03/18 01/04/17
Current assets
Cash and cash equivalents 20770 46860
Net receivables 14480 13780
Inventory 78100 75850
Other current assets 1090 16770
Total current assets 114440 153260
Long-term investments 4360 5150
Property plant and equipment 439390 483780
Goodwill 7740 7840
Intangible assets 52180 63060
Other assets 119560 97090
Total assets 737670 810180
Current liabilities
Accounts payable 87290 96750
Short/current debt 12530 51760
Other current liabilities 22260 22430
Total current liabilities 122080 170940
Long-term debt 162290 166340
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Other liabilities 109940 106240
Minority interest -250 -590
Total liabilities 394060 442930
Stockholders' equity
Common stock 40620 40620
Retained earnings 656040 661760
Treasury stock -442630 -428390
Capital surplus 41640 41640
Other stockholder equity -442630 -428390
Total stockholder equity 295670 315630
Net tangible assets 811810 929500
In order to formulate the trial balance certain steps need to be followed which are as
under:
 Three columns are needed for the preparation of worksheet. First column is for title,
second column is for credit and the remaining is for debit.
 All the recording are balanced systematically
 Total of credit and debit column are done
 After conducting all the above points compare the total of the columns.
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Analyse types of cost and how they can be managed to influence the
financial performance of your business and show how profit margins
can be calculated using an example of your choice
Calculation of profit and loss
Balance Sheet of
Paul Services as
at June 30, 2016
Assets $ $
Current Assets
Cash at Bank 91390
Accounts
Receivable
30460
Supplies 477.5
Prepaid
Insurance
3820
Total Current
Assets (A)
126147.5
Fixed Assets
Furniture 39800
Equipment 77600
Store Equipment 115400
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Balance Sheet of
Paul Services as
at June 30, 2016
Automobile 153200
Total Fixed
Assets (B)
386000
Total Assets [(A)
+ (B) = C]
512147.5
Equity and
Liabilities
Current
Liabilities
Accounts
Payable
60920
Interest Payable 110500
Unearned
Revenue
11950
Total Current
Liabilities (D)
183370
Long-Term
Liabilities
Loan Payable 9560
12

Balance Sheet of
Paul Services as
at June 30, 2016
Mortgage
Payable
191200
Total Long-Term
Liabilities (E)
200760
Total Liabilities
[(D) + (E) = F]
384130
Equity
Paul's Capital 128017.5
Total Equity (G) 128017.5
Total Equity and
Liabilities (F) +
(G)
512147.5
Changes in Equity of Paul
Particulars $
Paul's Capital 54341
Less: Drawings -191
Add: Retained Earnings 73867.5
Net Paul's Capital 128017.5
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Changes in Equity of Paul
Working Notes
Depreciation Adjustments
Furniture 47800
Less: Depreciation -8000
Net Value of Furniture 39800
Equipment 95600
Less: Depreciation -18000
Net Value of Equipment 77600
Store Equipment 143400
Less: Depreciation -28000
Net Value of Store
Equipment
115400
Automobile 191200
Less: Depreciation -38000
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Working Notes
Net Value of Automobile 153200
Discuss the importance of accurate recording of transactions in line with
accepted accounting principles.
Business associates conduct Accurate recording of transaction in their working
premises so that habit of recording their business transaction can be build gradually (Gibson,
2017). However, accurate recording transaction are adopted by management because it
directly assist in reminding expenses and credit arises arises in a firm. As per the accounting
principles there are distinguish principles which are, double entry system, going concern,
revenue recognition, cost principle, full discloser and many more. All this are adopted by
organization in order to record the transaction conducted in the working premises in
systematic order.
Include a conclusion that critically evaluates the role of financial
management and monitoring in achieving growth in your business;
include your own recommendations
Finance manger in an organization plays a significant role because they are held
accountable to record all day to day transaction taking place in the working premises. Along
with this they monitor performance and take best decision according to the accounting
principles that aid to formulate income statement. In regards of Healthy Rom monetary
management plays a vital role as, designing trial balance under accounting standards,
recording transaction and to make income statement so that growth of business can be carried
out smoothly in the open market place.
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ACTIVITY 2
A review of the different stages of the HR life cycle as applied to issues in
talent acquisition and retention within the food and beverage sector.
HRM is the core task of the enterprise because they are playing distinguish role and
manages all functions appropriately. In regards of Hotel Ritz there are several phase of
human resource life cycle which assist food and beverages manger for retention and talent
acquisition. The phase of human resource life cycle are discussed below:
Attraction: Hotel Ritz is searching manger for food and beverages that render food to
clients. For this manager are using numerous sources to sources to supply information
regarding the vacant post in a firm (Hur and Lee, 2017). Ritz is facing challenges while
hiring the suitable nominee for the post vacant. Additionally, they stimulate applicants to
apply for the post.
Recruitment: Manager of the Ritz is recruiting the manager for food and beverages
department by conducting personal interview and aptitude test. This will assist company to
uplift their overall profit maximization ratio tremendously. However, many issues are faced
by firm when wrong applicant is placed in the vacant position. It directly impact the business
set goals and objectives because they are not attained in the specified timer frame.
On- boarding: Here, in this particular stage manager of food and beverage who has
been selected by the HR of the company gets indulged in the business related activities. Due
to which selected applicant is able to capture the roles and responsibilities easily and better
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results can be given by them. Organization is facing another problem associated to training
and skills of workers. They are not acknowledged from culture and activities of business so
they resist to work better.
Enablement: Rtiz management conduct this in the working premises as it provide
information to new employees through question and answer sessions, presentation, programs
and many more. Whereas, organization adopts event programs in that manger of food and
beverages illustrates their roles and responsibilities so that vision of firm can be
accomplished. The productivity level of workers reduces when the roles and duties are not
clear to them. Hence, recruited employee is given proper training and health working
environment so that they can feel more connected with the work and the premises.
Development: Hotel Ritz adopt this in their working premises in order to ascertain
the better career options of food and beverages manager (Kimbell and Blomberg, 2017). It
can be done by involving them in business activities so that their professional skills can be
improved gradually and more knowledge can be enhanced. As management is abler to prove
less growth career growth opportunity employee turn out ratio is raises which is influencing
the performance of the business. To cope up with the competitors it is important to render
career opportunity so that skilled and competent staff members can be hold back over the
years.
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Retention: Management of Ritz adopts various strategy to retain the manager of food
and beverages department. Organization timely monitor their performance and apprise them
for their best performance by this they are encouraged to perform best(Phillips and Schegg,
2017). Employees turn out ratio raises when they are not given incentives and benefits for
their hard work. So, it is very essential to provide them benefits so that they can retained
back in the firm over the years.
Separation: It is used by Ritz in order to handle the separation and transition of co-
workers by formulating strategic plans appropriately. It is widely implemented in the working
premises so as to handle workers and their separation. By this business can be operated
smoothly in the intense competitive world. Exit interview should be conducted so that reason
of leaving the firm can be better understood and improvements can be done easily.
Recommendations: HR life cycle assist Hotel Ritz to hire deserving applicant for the
vacant position. Along with this they provide career growth and appreciate workers for their
hard work in order to hold back them in the premises. By doing so set goals and objectives
can be attained easily.
Evaluate each stage of the HR life cycle and the importance HR plays in
supporting, growing and retaining talent as applied to the specific job
role.
Human Resource life cycle is essential for the organization because it assist in
discovering right candidate for the vacant post (Korzh and Onyshchuk, 2018). Through this
issues are resolved easily which are faced by the management in the open market place. HR
Life cycle is beneficial for Hotel Ritz as it directly help in discovering the vacant position of
food and beverages manager, provide training, give approval for their best performance,
recruiting and so on. By this huge profits can be gained in the global market as compare to
competitors. Additionally, it aid in improving their skills which will help staff members to
perform their job role more accurately.
The value of HR for supporting, developing and holding back talent is elaborated as
under:
 HR manger adopts development and retention stage because it provide benefits that
leads to growing, retaining and supporting the workers in the working premises.
 Appropriate policies need to be designed by the management in order to attract
suitable applicant for the vacant post.
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 Recruitment process is adopted by Ritz because it saves time and cost of the HR by
posting advertisement on social media platform.
Develop a performance management plan to support the specific job role
PMP is designed by the form in order to monitor the performance so that productive results
can be attained. HR manger of Ritz is preparing PMP for manager of food and beverage
department (Pearce,and Zare, 2017). The plan is explained as under:
Plan Monitor Review
Hotel Ritz manager need to set
priorities of food and
beverages so that emerging
needs of the customers can be
meet. They provide complete
training and support
employees so that work can be
accomplished in the set
deadline.
Here, manger interact with
food and beverages department
and come up with solution for
their problem which they are
facing while conducting the
activities. Performance of
employees is measured and
appropriate solution are given
to them.
Ritz manger study the
feedback and frame tactics to
resolve the loop holes so that
set goals and objectives can be
attained easily (Manning,
2018).
Make valid judgments and suggestions on how processes and documents at
each level of the Human Resource life cycle can be enhanced.
Suggestions:
 Human resource life cycle can be improved through the process of recruitment.
 By educating the employer and employees process and documents at each level of
Human Resource life cycle can be enhanced.
 The another way to upgrade the process of Human Resource Life Cycle is through
motivation. By encouraging team members towards change process and documents at
each level of Human Resource can be improved easily.
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ACTIVITY 3
Identify specific legislation(s) that hospitality organizations has to comply
and adhere to, in the daily transaction of business using examples to
explain where applicable
Hotel Ritz adopts various legislation in their working premises which are illustrated as
under:
Minimum wages Act, 1998: All food and beverages in Hotel Ritz are getting
minimum wages that is decided by the governing bodies which promotes employee
engagement. By this employees are hold back at the work place over the years. Examples:
Ritz is giving minimum salary to all its employees who are working in the company in any
department.
Health and Safety Work Act, 1974: All the necessary equipment are given to the
employees in the working premises so that they can be assured that they are valuable assets of
the firm. By this they are motivated to perform better as compare to earlier performance. This
helps firm in gaining competitive advantages against rivalry. Example: Hand gloves are given
to the employees are working in the Kitchen of Hotel Ritz (Nayak and Taylor, 2018).
Illustration of how the company’s employment and contract law impact on
business decision-making.
The decision making process of the firm are affected by Employment and contract
law because they need to frame all the policies for their growth by keeping in mind about this
law. The plans which where designed for the development of the employee need to modified
as per the requirement. Lot f time is consumed in this process due to which work gets
delayed.
Examine the potential implications of any Two (2) of the regulations on
standards using examples.
Health and safety Act: In this act employees are given suitable equipment and tools
at the work place so that assigned work in the kitchen can be performed properly. Example:
Healthy Rom provide hand gloves, proper ventilation, freezer gloves, Cut-resistant gloves
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and many more. By doing so employees working in the kitchen can be saved from injuries
and sudden mis-happening.
Wages Act: In the working premises each and every employees working in the same
post should be provided the same salary despite of any gender. Example: Healthy Rom
provide same salary to the workers who are working in the kitchen accept the chef. The
salary of chef is different from the other workers who are supporting them while cooking.
Both male and female workers the same wages who are supporting the chef in the kitchen.
Critically reflect on the impact of ethical issues of regulations, legislation
and principles by identifying Two (2) ethical issues and make valid
judgments and recommendations on how legislation can help
improved the company employment contract
From the above discussion it can be reflected that firm should focus on employee
legislation in order to hold back the staff members over the years in the working premises
(Nayak and Waterson, 2017). By adopting legislation management assure the co-workers
that they are provide necessary amenities to the injured staff member. By doing so workers
satisfaction level can be raised which directly or indirectly raises companies goodwill in the
eyes of the customers. Additionally, competitive advantages can be gained rivalry prevailing
in the open market place.
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ACTIVITY 4
(Covered in PPT)
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CONCLUSION
From the above report it can be summarized that there are distinguish element which
influence hospitality sector day to day business activities. Trail balance, journal entry and
many more are systematically handled by organization because they contains a set rule which
guide them accordingly. Financial transaction are related to organization which helps to know
the organizational profitability by involving all income and expenses. There are different HR
legislation which are important to follow and this increases effectiveness.
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REFERENCES
Books and Journals
Chung, G. and Chung, D., 2018. WOW the hospitality customers: transforming innovation
into performance through design thinking and human performance
technology. Performance Improvement. 57(2). pp.14-25.
Farrington, T., Antony, J. and O’Gorman, K. D., 2018. Continuous improvement
methodologies and practices in hospitality and tourism. International Journal of
Contemporary Hospitality Management.
Foris, D., Popescu, M. and Foris, T., 2018. A comprehensive review of the quality approach
in tourism. Intech Open Science. 10. pp.159-188.
Foster, M. and Carver, M., 2018. Explicit and implicit internationalisation: Exploring
perspectives on internationalisation in a business school with a revised
internationalisation of the curriculum toolkit. The International Journal of
Management Education. 16(2). pp.143-153.
Gibson, P., 2017. 2 Talent Management in the Hospitality and Tourism Context. Talent
Management in Hospitality and Tourism, pp.17-31.
Hur, K., Kim, T. T., Karatepe, O. M. and Lee, G., 2017. An exploration of the factors
influencing social media continuance usage and information sharing intentions
among Korean travellers. Tourism Management. 63. pp.170-178.
Kimbell, L. and Blomberg, J., 2017. The object of service design. Designing for Service: Key
Issues and New Directions. 27. pp.20-34.
Korzh, N. and Onyshchuk, N., 2018. Selection of the optimal set of revenue management
tools in hotels. Technology audit and production reserves, (1 (4)), pp.16-21.
Manning, L., 2018. The value of food safety culture to the hospitality industry. Worldwide
Hospitality and Tourism Themes.
Nayak, R. and Taylor, J.Z., 2018. Food safety culture–the food inspectors’
perspective. Worldwide Hospitality and Tourism Themes.
Nayak, R. and Waterson, P., 2017. The Assessment of Food Safety Culture: An investigation
of current challenges, barriers and future opportunities within the food
industry. Food Control, 73, pp.1114-1123.
Pearce, P. L. and Zare, S., 2017. The orchestra model as the basis for teaching tourism
experience design. Journal of Hospitality and Tourism Management, 30, pp.55-64.
Phillips, P., Barnes, S., Zigan, K. and Schegg, R., 2017. Understanding the impact of online
reviews on hotel performance: an empirical analysis. Journal of Travel Research.
56(2). pp.235-249.
Reid, S., Johnston, N. and Patiar, A., 2017. Coastal resorts setting the pace: An evaluation of
sustainable hotel practices. Journal of hospitality and tourism management, 33,
pp.11-22.
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