The Hospitality Business Toolkit

The Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Principles of monitoring and managing financial performance.......................................1
P2. Apply double entry bookkeeping system of debit and credit record sale and purchase
transactions in general ledger.................................................................................................2
P3. Prepare trail balance.........................................................................................................3
TASK 2............................................................................................................................................4
P4. Review the stages of HR life cycle..................................................................................4
P5. Develop a Performance management plan and apply techniques to resolve negative
behaviour................................................................................................................................6
P6. Legislations that a hospitality organisation must comply and adhere to..........................7
P7. Potential impact of company, employment and contract law over business decision
making in hospitality sector....................................................................................................7
P8. Interrelation between different functional role within hospitality sector.........................8
P9. Different methods of communication, coordination and monitoring within hospitality
organisation............................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality industry is one of the vastly growing sectors in the modern era. The present
project is based upon a newly opened business which is turning into a flourishing organisation at
Moorgate in London EC2Y. The name of the entity is “Sip & Whip” and it specialises in
inventive, healthy salad which are being served with a wide variety of blended juices as well as
smoothies. The opening of a gym nearby has inflated the trade for the company. Further, the
business mentor for Sip & Whip has come up with the idea of blending the juices and smoothies
with alcoholic spirit to serve as a healthy alternate to the wine bar in nearby vicinity.
The report consists of principles of managing and monitoring financial performance.
Further, it encompasses HR life cycle along with the performance management plan. Besides
this, the legislation affecting hospitality organisation and influence of certain laws over decision
making of company is covered in the assignment. Lastly, methods for communicating,
coordinating and monitoring are included.
P1. Principles of monitoring and managing financial performance
Financial performance can be referred to as a measure of the extent to which a firm can
make use of its assets with a view to generate high level of revenues as well as profits. As an
Accounts Assistant, it is important to conduct evaluation of the financial performance of the
organisation with a view to ascertain whether the venture is meeting the targets for which it was
developed. In this regard, each company takes into account certain essential principles which
provide assistance in monitoring as well as management of financial performance. These
principles are discussed in context of Sip & Whip as follows:-
Preparation of key financial statement:
This is considered to be the basic report that an organisation such as Sip & Whip needs to
prepare. Financial statements include Profit & Loss Statement along with Balance Sheet. Both of
them together present a picture of the financial standing of the company at any point of time.
These will provide Sip & Whip with knowledge of the areas whereby the entity can facilitate
reduction of cost through elimination of extra expenditure.
Preparation of inventory record:
This principle requires a firm such as Sip & Whip to maintain records of company stock
and other materials bought by it. This provides assistance in ascertainment of overall wastage
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that took place. Looking upon this, Sip & Whip would take measures to ensure that least wastage
takes place in future course of time.
Evaluation of overheads:
There are a number of extra expenses that are incurred by an organisation but they do not
hold relation with the operations of the organisation. By keeping a proper record of the
overheads, Sip & Whip would be able to cut down the extra expenses that tend to hamper the
profitability of the corporation.
P2. Apply double entry bookkeeping system of debit and credit record sale and purchase
transactions in general ledger
Double Entry Bookkeeping can be referred to as that system of accounting whereby a
transaction executed by the business involves two or more accounts to be affected in order to
ensure that the accounting equation gets balanced. An example of the double entry book keeping
system for recording the sales as well as purchase transactions is given underneath:-
Sales account
Particulars Amount Particulars Amount
To balance b/d 7500 By Bank account 5000
By Mr. Joy account 2500
Total 7500 Total 7500
Purchases account
Particulars Amount Particulars Amount
To bank account 6000 By Balance b/d 6500
To Ms. Raechel account 500
Mr. Joy account
Particulars Amount Particulars Amount
To bank account 6000 By balance b/d 6500
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