Principles of Financial Performance in Hospitality Business

Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Analysing the principles of financial performance................................................................3
P2. Applying double entry bookkeeping system of debits and credit .........................................4
P3. Producing basic trial balance ................................................................................................9
TASK 2..........................................................................................................................................10
P4. Determining stages of HR life cycle ...................................................................................10
P5. Developing performance management plan........................................................................12
TASK 3..........................................................................................................................................13
P6. Identification of legislation applied in Hospitality organisation.........................................13
P7. Defining example that employment and contract law impact business decision making . .14
TASK 4..........................................................................................................................................15
P8. Exploring functional roles in hospitality sector ..................................................................15
P9. Analysing communication method used in organisation.....................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Hospitality management includes managing and overseeing the administrative task of
hotels and ensure that costumer feel warm and welcoming through their services and facilitates
(Arcuri and et.al., 2020). This sector helps the people to provide employment in various sectors
and leads to certain costumer benefits in many ways and satisfying their needs and requirement
is top most essential demand. In this report the company chosen is Corinthia Hotels London at
the corner of Northumberland Avenue and Whitehall place in central London.
The topic covered in this report is the way that Corinthia hotel manages finance and
record transaction to minimise cost in hospitality sector and identification of Human resources
life cycle in the context of HR strategy. Apart from that discussing the potential impact of legal
and ethical consideration on Hospitality business is being analysed.
TASK 1
P1. Analysing the principles of financial performance
In every organisation there are certain ways to monitor the financial performance and
their efficiency. This is important to undertake such principles to ensure better growth in future
and that leads financial monitoring of business. In the Hotel Corinthia this principles are very
essential to maintaining the success of organisation' accountants in every areas. Following are the
principles are as follows-
 Preparation of financial statement- The basic need of every company is to produce
balance sheet and profit and loss statement for the business and regulate all important
books to keep the record of all transaction (Ariza-Montes and et.al., 2017) In the
company Corithia Hotel this is necessary to prepare these financial statements to know
the financial status of company and gives an overview to the management.
 Preparation of aged Debtors trial balance- It is important to prepare trial balance so
that organisation can keep the record of all customer who owed money. For the Hotel
Corinthia this facilitate in monitoring all transaction to follow up diligently and assure
that they got the money back from debtors.
 Inventory records- This concern with investing heavily in machinery, equipment and
raw material and ensure all accurate inventory records. This records helps in knowing
how much stock was purchased, how it went waste and whether they gone missing at any

point of time. In the Corinthia this is essential to keep the records of all inventory
purchases and facilitate in calculating stock ratio.
 Preparing working capital requirement and financial ratios- It is essential to ask the
companies to put regular working capital requirement and various ratios that how things
must be regulated properly (Eissner and Gannon, 2018). In the company Corinthia, the
proper monitoring of assets and liability in the company is important and to ascertain that
how much time it will take to convert the cash.
 Preparing of Fund and cash flow statements- These statements are integral and vital
part of company and that tells that how much money is coming and going out from the
business. Through this it is easy to know the cash position of management and regulating
the proper earning. In the company Corinthia this statements helps in knowing the major
efficiency and effectiveness of the company and tells the liquidity of company. This
ensure that cash is using in proper manner and using in productive activities and
functions.
P2. Applying double entry bookkeeping system of debits and credit
Double entry system concern with book-keeping method that include all monitory
transaction that taken place in business and requires correspondence with opposite entry. There
are two equal side of every transaction that deals with debit and credit. They both function in
their own way in different rules and nature of account (Hu and Olivieri, 2020). Proper
knowledge of there rules is necessary to attempt right entry and for that there are certain
principles and rules that mentioned in accounting system. They are very basic rules and
regulation that define the need of this record and that also ensure effective way to handle such
transaction. In case with Corinthia Hotel, Journal entries and ledger posting for the March, 2020
as as follows:
Journal entries for Corinthia Hotel for the month ending March, 2021