Managing and Monitoring Financial Performance in Hospitality Business

UNIT-4 HOSPITALITY
BUSINESS TOOLKIT

TABLE OF CONTENTS
Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Principles of managing and monitoring financial performance..................................................1
Double entry................................................................................................................................2
Ledger..........................................................................................................................................3
Trial balance................................................................................................................................6
PART B...........................................................................................................................................7
Different stages of HR life cycle applied specifically to hospitality job role..............................7
Performance Management Plan...................................................................................................8
PART C.........................................................................................................................................10
Specific Legislation that organisations have to comply............................................................10
Impact of company, employment and contract law on decision making..................................11
PART D.........................................................................................................................................12
Different Functional roles and their interrelation......................................................................12
Different methods of communication, coordination and monitoring........................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
The hospitality business basically involves the addressing of the different aspects that are
associated with the formulation of different tasks and to also address the requirements of
different department such as finance, marketing etc. (Cheng and et.al., 2017). The current report
will evaluate the different methods of monitoring the financial performance in the organisation
and also develop proper double-entry and other relevant tools. Further the report will evaluate
the different stages of HR and then develop a performance management plan. This will be
followed by the evaluation of the necessary legal aspects and lastly the evaluation of different
monitoring and communication tools will be done in the report.
PART A
Principles of managing and monitoring financial performance
There are a variety of principals that needs to be referred to in order to improve the financial
recording and performance. Some of them can be discussed in the context of East London
Catering as:
 Preparation of effective and accurate budgets so that all the potential resources available
and the potential areas of expenses can be easily calculated. In East London Catering, this
facilitates the overall work that is to be completed and also helps in the better
ascertainment of the costs that might be incurred (Ahmed and Manab, 2016). East
London Catering can regularly measure and control their problems through this.
 The statements and budget should be attainable and realistic ensuring that no unnecessary
expenses are recorded in the organisation and no out of proportion costs are included.
The accountants at the East London Catering can ensure that the overall expenses that are
included in the budget are realistic and the different categories are the one which can be
actually attained. This can help the company in developing a better management
approach towards the finances of the company.
 The preparation of the budget should be after an exhaustive evaluation of the different
techniques and performances that are to be included so that correct budgets and
statements can be developed. The preparation of the budget is a very detailed process and
activity at East London Catering as well where the key is to ensure that the overall
budgets that are prepared are formulated after adequate consideration and in a
comprehensive manner.
1

Double entry
Journal:
Journal entry for the year ending 2019-2020
Date Particulars Debit Credit
04/03/20 Cash A/c Debit
Capital A/c Credit
30,000
30000
05/03/20 Rent A/c Debit
Cash A/c Credit
10000
10000
06/03/20 Washers and Dryers a/c debit
Cash A/c Credit
Accounts Payable Credit
25000
10000
15000
07/03/20 Insurance policy a/c debit
Cash A/c Credit
1200
1200
09/03/20 Purchase A/c Debit
WH Adams Ltd A/c Credit
15000
15000
11/03/20 Laundry Fee A/c Debit
Cash A/c Credit
200
200
15/03/20 Telephone and internet A/c Debit
Rates, water charges and refuse A/c Debit
Cash A/c Credit
2220
950
3170
16/03/20 Wages and Salaries A/c Debit
Cash A/c Credit
1740
1740
18/03/20 Cash A/c Debit
Sales (Food) A/c Credit
20000
20000
20/03/20 Cash A/c Debit
Sales (Bevgerage) A/c Credit
13000
13000
2