Managing and Monitoring Financial Performances in Hospitality Business

Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
Investigating principles of managing and monitoring financial performances......................1
Application of Double entry Book-keeping system...............................................................4
................................................................................................................................................5
Ledgers:..................................................................................................................................6
Producing basic Trial balance................................................................................................9
Trial Balance........................................................................................................................10
ACTIVITY 2..................................................................................................................................10
Assessment of managing Human resource Life cycle in context of HR strategy................10
Developing Performance management plan.........................................................................13
Potential impacts of legal and ethical considerations on Elcot Park Hotel..........................15
How Company, Employment and Contract law impacts decision-making in Elcot Park Hotel
..............................................................................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
Books and Journals...............................................................................................................17

INTRODUCTION
Hospitality sector is one of the most integrated sector of business with the social life of
people in modern world. People make use of Hotels and its services occasionally, professionally
as well as regularly. Also, the business have developed and making continuous development in
order to cater all the demands of users and also tries forecasting demands of future so they can
make developments in advance. Through this way it harbours needs of society and is engaged in
making their moments of life, like Tour and Trips, marriages, functions etc. more delightful and
enjoyable. While fulfilling these purposes, the Hospitality industry have thus becomes a full-
fledged business in itself and have acquired various gradings, types and classification (Buhalis
and Leung, 2018).
Through this report it have been tried to comprehend different business operations and
dimensions involved in Hospitality sector. And for the purpose of bringing more clarity a case
study on Elcot Park Hotel is carried out.
The report first discusses about how Elcot Park Hotel manages and carry their Financial
recordings, what tools and methods its uses, what are its source documents and their principles of
monitoring financial performance. Secondly, a discussion on the role of Human resource
manager is made. The report discusses about Human resource lifecycle as part of HR strategy,
importance of retaining and developing talent followed by understanding and developing
performance management plan. Followed in the report discussion are various ethical and legal
issues which are confronted by Hospitality sector.
ACTIVITY 1
Investigating principles of managing and monitoring financial performances
Financial performance of any business deals with the organisational efficiency to cater,
retain, manage and grow their financial sources. Financial sources includes those sources that
helps any business to raise funds, it can be business's own capital, money of Shareholders,
outsourced borrowings from financial institutes, debentures, bonds etc. and gains from
investments. In order to keep a track record of every financial sources, what is its cost for
business and to identify its profitability a business must keep a proper record of these sources
and all the transactions pertaining to it (Camilleri, 2020). Likewise, in case of Elcot Park Hotel,
the business maintains its financial records in a complete process and defined order, that includes
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knowing basics from daily receipts and vouchers of all transactions taking place of different
business operations, recoding them over a ledger and accounting transactions of each component
in their respective accounts. Further, the process of recording follows maintaining Trial balances
from ledger and finally preparing Cash flow statements (tracking inflow and outflow of cash in a
business cycle) and analytical accounts, to know actual performance of business. While carrying
out this complete process, that nearly takes one business cycle, Elcot Park Hotel follows a set of
principles that helps it to not only maintain records but also manage its financial performance
very efficiently (Chang, 2018). These principles are:
Consistency- This principles states that there should be a standard manner of identifying,
recording and analysing the business transactions in the organisation as seen in the case of Elcot
Park Hotel that there is a specified process from receipts and vouchers to final analytical
accounts. This specified path helps organisation to monitor the transactions efficiently and draw
conclusion thereon.
Timeliness- Under this principle it is observed that the transactions should be recorded within a
reasonable time frame. For example if any guest in the hotel checks-in in September and leaves
the hotel within a week, but its records of bills payment, food orders etc. are made in November,
then this fault will affect all other transactions from September to November be it regarding cash
flow, food, use of telephonic facilities, Internet service etc. and the complete financial picture
will be disturbed for Elcot Park Hotel.
Justification- The principle mention that, there must be good and clear justification or
explanation about happening of any transaction at the time it actually took place supported by
business goals. This helps Elcot Park Hotel in avoiding vague and useless transactions in the
business records (Filimonau and Delysia, 2019). Vague transactions are those which do not
provide clear picture of what actually in a particular event. Avoiding vague transaction is helped
by maintenance of proper, clear and separate accounts supported by effective classification of
accounts.
Documentation- The principle states that every transaction takes place shall be properly
documented in a specified manner and under specific procedure of business organisation. This
principle is an aid to the justification principle and together both of these principles helps Elcot
Park Hotel to lay out clear picture from their financial transactions.
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Certification- Principle of Certification mentions that all documents and records of transactions
in the business must be certified by proper authorities with in as well as outside the business, and
contain signature of necessarily authorized persons. This principle will help Elcot Park Hotel to
project reliability of their financial data (Gnanapala, 2017).
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