Unit 4 - The Hospitality Business Toolkit

Unit 4 - The Hospitality
Business Toolkit

Table of Contents
INTRODUDUCTION .........................................................................................................................3
Activity 1- PART 1...............................................................................................................................3
TASK 1 ................................................................................................................................................3
P1 Examine the principles of managing & monitoring of financial performance .........................3
P2 Use double entry bookkeeping system of debits & credits to record sales and purchases
transactions in a general ledger........................................................................................................4
P3 Present a basic trial balance applying the use of balance off rule to complete the ledger..........7
Activity 2- PART 2...............................................................................................................................8
TASK 2.................................................................................................................................................8
P4. Various stages of the HR life cycle and role in retaining the talent...........................................8
P5 Analyse performance management plan in hospitality job role applying techniques to solve
negative behaviour & deal with issues of staff retention ................................................................9
TASK 3...............................................................................................................................................10
P7 Give examples how firm, employment & contract law has potential impacts on business
decision making.............................................................................................................................11
Conclusion..........................................................................................................................................13
REFERENCES ..................................................................................................................................14
Books & Journal:...........................................................................................................................14

INTRODUDUCTION
Hospitality refers to the relationship which is between guest and host. In this, host provides
their services to their guest which is one of the better services. Hospitality includes event planning,
lodging, theme parks, food and drink services and transportation and many more (Albizri, 2019).
This report is based upon Premier Inn which is an international hotel which is there able to provide
high quality of services to their customer and is located in UK. This hotel has many competitors like
The Ritz Carlton London, Fore Season hotel & resorts, etc. This is a luxurious hotel which
introduced electric lifts and lights throughout the building also containing hot and cold running
water and having much innovation in their premises. This report consist of HR role in business, HR
life cycle along with management plan which helps in conflict solving along with this there are
different rules and legislation.
Activity 1- PART 1
TASK 1
P1 Examine the principles of managing & monitoring of financial performance
In business, it is important to focus on financial performance of business so that goals are
accomplished in proper manner. Finance is important part without which it is not possible to
execute business activities. It is necessary to manage and monitor the financial performance so that
it is easy to achieve goals. In relation of Premier Inn, it is large firm and has wide range of chains
all across the globe. It is essential to be aware about financial performance so that it is easy to use
the methods in proper manner. So, various types of financial performance principles are discussed
as follows-
Preparing financial report- Financial statement is defined as written document that defines
the financial position of business. Basically, three statements are being prepared which are profit
and loss, balance sheet and cash flow statement. With help of these financial statements, it is easy to
depicts the how well entity is performing financially. All these statements are essential to be
prepared by finance department of firm (Dedusenko, 2017).
Maintaining inventory- It is also essential principle of financial performance because it is
critically important to carry out functions as well as operations of business properly. It is necessary
to maintain inventory so that needs and demands of customers are fulfilled appropriately. In relation
of chosen hotel, they manage inventory with proper considerations.
Analysis of overhead- Overhead refers to costs that not directly related cost units. There are

various kinds of overhead costs such as rent, insurance, sales & marketing, administrative costs etc.
It is necessary for selected entity to be well aware about these type of costs so that decisions related
to costs are undertaken in proper manner.
Therefore, from above stated matter it is seen that it is essential to focus on these principles
so that positives benefits are achieved easily, Also, it is has been specified that it is necessary to use
these principles with proper considerations (Gupta, 2019).
P2 Use double entry bookkeeping system of debits & credits to record sales and purchases
transactions in a general ledger
In an organisation, it is essential to focus on accounting terms as they help in understanding
of business operations properly. So, some financial terms are further explained as follows-
Book keeping-
It refers to process of recording of cash transactions that are done within business (Hanley,
2020).
Double entry-
It is defined as for every debit there is credit of same amount. It is necessary to understand
this double entry system so that transactions are managed accordingly. In reference of Premier Inn,
they manage & maintain journal within their record of ledger & classify them accordingly.
Journal-
It refers to written document in which all transactions are being recorded first time. It is
also known as book that contains all details of every transaction in systematic manner.
Ledger-
A ledger is defined as book that contains record of every transaction into classified and
summarised-form.
In viewpoint of chosen hotel, the finance and account department is well aware of these
terms and them these documents with proper considerations. Bookkeeping, double entry, journal
and ledger both are crucial for recording of transactions (Jan, 2018).
There are three essential principle which is used in bookkeeping system that are considered as
a separate entity concept through which the organisation focuses on having their own legal article.
In addition to this, the principle related to accounting equation that is described regarding Assets –
Liabilities = Capital. Then, tthe principle signifies regarding every transaction that imposes direct
effect on another transaction that is determined as a dual effect.
Balance sheet of Hotel
Assets Amount Liabilities Amount