Managing Finance and Recording Transactions in 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
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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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