Principles of Managing and Monitoring Financial Performance in Hospitality Industry

Hospitality Business
Toolkit
1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Investigate the principles of managing and monitoring financial performance................3
P2 Apply the double entry bookkeeping system....................................................................4
P3 Produce a basic trial balance...........................................................................................14
TASK 2..........................................................................................................................................15
P4 Review the different stages of the HR life cycle applied to a specific hospitality job role
and their importance for retaining and developing talent.....................................................15
P5 Develop a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behaviour and overcome issues of staff retention.......15
TASK 3..........................................................................................................................................16
P6 Identify specific legislation that a hospitality that has to comply within an organisation16
P7 Using specific examples illustrate how company, employment and contract law has make a
potential impact upon business decision making in the hospitality industry.......................17
TASK 4..........................................................................................................................................17
P8. Examine how different functional roles within the hospitality sector interrelate..........17
P9. Discuss various methods of communication, coordination and monitoring applied in a
specific department of an organisation to strengthen the value chain. ................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20
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INTRODUCTION
Hospitality and tourism management is a immense industry with various career tracks
that offering wide job opportunity to individuals across various sectors. On the other hand, it is
generally recognised as a part of the wider service industry that concentrates on leisure time
more than another basic or sufficient needs. It is a panoramic tract and number of professions are
able to enhance a ordered and adequate statement by which the industry is present (Çetindamar,
Phaal and Probert, 2016). In this project the chosen company Bicester Hotel spa and golf is a
four- star resort as it is set among beautiful wide acres of Oxfordshire countryside. As it evolves
the 52 spacious rooms and suites, that is decorated in four different contemporary styles that is
surrounded by quaint gardens and a glorious 18 – hole of golf course that allows a backdrop of
the most common magnificent sweeping rural view as in the hotel. It includes the principles of
managing and monitoring financial performance. It applicable the double entry bookkeeping
system of debits and credits to record sales and purchase the transaction in a general ledger. It
produce a basic trail balance method that applies the use of the balance off rules to completing
ledger hence, reviews the various levels of HR life cycle that applied to a specific hospitality job
role and their importance for retaining and developing talent that plans fir applying techniques to
resolve both negative behaviour and overcome issue of staff legislation that organisation has to
company.
MAIN BODY
TASK 1
P1 Investigate the principles of managing and monitoring financial performance
Financial success is defined as the degree to which assets can be used efficiently by a company
to help achieve high revenues. There are different standards that provide guidelines for the
management of reporting and financial results (Çetindamar, Phaal and Probert, 2016).
Financial accounts are developed to take advantage of reduced expenditures. The source
documents of daily receipts and coupons obtained during the purchasing and selling of raw
materials are registered by the East London Catering organization. In addition, it includes the
financial reporting phase of the organization. In order to reduce its expenses and track cash
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flows for these various financial statements, each company has to plan and oversee its
finances.
Maintaining correct stock records-The concept is focused on the retention and creation of
specific raw material records and all substantial transactions made by an agency. This provides
knowledge of excess during the inventory procurement and storage process for above
company.
Making key financial statement presentations- This concept is focused on the creation of key
financial statements such as profit & loss and balance sheet, with a view to an analysis of the
overall financial condition of the organization (Chaperon, Coca-Stefaniak and Kennell, 2016).
Through writing these documents above company will be able to raise awareness in these
regions, which will help the company improve its production this year.
Evaluation of overhead costs- In addition to corporate spending, this concept helps to provide
insight into the additional expense of an entity. Above company will measure the expenses of
all investments that can be minimized by maintaining all extra spending reports in order to
minimize running costs and improve profit margins next year.
P2 Apply the double entry bookkeeping system
This scheme includes a corresponding, opposite account entry for each account entry. Debit and
credit are two identical and the corresponding sides of the twin entry. The correct is credit and
the left deduction (Dyshkantiuk and et.al., 2020). This system defines three rules, such as a
distinct body under which above mentioned company has an autonomous corporate structure.
Another law is the valuation equation, according to which Assets – Liabilities – Resources The
third rule is that any transaction has double results on double transactions.
In the books of
Michael
Traders
Journal Entries
4

Dat
e Particulars L.
F Debit Credit
1-
Apr
Michael started business with cash 600,000, cash at Bank of
America 700,000, furniture 200,000.
Cash A/c Dr.
Bank of America A/c Dr.
Furniture & fixtures A/c Dr.
To Michael's Capital A/c
600,0
00
700,0
00
200,0
00
1,500,0
00
1-
Apr
Purchased Plant & Machinery worth 250,000 by cheque.
Plant & Machinery Dr.
To Bank of America A/c
250,0
00
250,00
0
25-
Apr
Purchased goods from ABC Ltd worth 800,000 @10% trade
discount.
Purchases A/c Dr.
To ABC Ltd A/c
720,0
00
720,00
0
5-
Ma
y
Cash Sales 1,000,000 @5% trade discount to XYZ Traders
Cash A/c Dr.
To Sales A/c
950,0
00
950,00
0
15-
Ma
y
Deposited cash with Bank of America 500,000.
Bank of America A/c Dr.
To Cash A/c
500,0
00
500,00
0
5-
Jun Paid ABC Ltd 300,000 in cash.
5

ABC Ltd A/c Dr.
To Cash A/c
300,0
00
300,00
0
10-
Jun Received commission 75,000 by cheque.
Bank of America A/c Dr.
To Commission received A/c
75,00
0 75,000
25-
Jun Cash Purchases 250,000.
Purchases A/c Dr.
To Cash A/c
250,0
00
250,00
0
5-
Jul
Sold goods to XYZ Traders 475,000.
XYZ Traders A/c Dr.
To Sales A/c
475,0
00
475,00
0
15-
Jul Received 275,000 by cheque from XYZ Traders.
Bank of America A/c Dr.
To XYZ Traders A/c
275,0
00
275,00
0
5-
Au
g
Loan taken from Bank of America 200,000
Bank of America A/c Dr.
To Bank Loan A/c
200,0
00
200,00
0
25-
Au
g
Purchased goods from ABC Ltd 50,000.
Purchases A/c Dr.
To ABC Ltd A/c
50,00
0 50,000
27-
Au
g
Withdrew cash from bank 10,000.
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