Importance of Financial Management in Hospitality Business

Hospitality
Business Toolkit

INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
1. Introduction of financial transactions.................................................................................1
2. Principles of managing and monitoring financial performance of business......................2
3. Principles of double entry bookkeeping system.................................................................3
4. Sample of trial balance stating steps used and purpose......................................................3
5. Types of cost and their management for influencing financial performance of business. .4
6. Importance of accurate recording of transaction................................................................5
7. Conclusion for evaluating role of financial management including recommendation.......5
ACTIVITY 2....................................................................................................................................5
1. Stages of HR life cycle applied to issues in talent acquisition and retention with food sector
................................................................................................................................................5
2. Evaluation of HR life cycle stage and significance of HR plays in supporting, growing and
retaining talent applied to specific job role............................................................................6
3. Develop a performance management plan for supporting particular job role....................7
4. Valid judgments and recommendations on processes and documents at HR life cycle stage
for improvement with examples.............................................................................................8
ACTIVITY 3....................................................................................................................................8
1. Identification of specific legislation which are comply by hospitality organizations in daily
transaction of business............................................................................................................8
2. Impact of company’s employment and contract law on business decision making...........8
3. Potential implications of any two regulations on standards with the use of examples......9
4. Critical reflection on how legislations improved the company employment contract.......9
ACTIVITY 4....................................................................................................................................9
Covered in PPT.......................................................................................................................9
CONCLUSION..............................................................................................................................10

REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality is all about welcoming individual by an individual into houses or any other
place wherever he/she work or spend time. However, hospitality is a term which originated from
Latin word “Hospes” and it means “to have power”. Simply, it’s an art of an individual,
corporate firm or an enterprise to entertain others in a guest form (Jayawardena and et. Al.,
2013). Therefore, this assignment is going to cover indispensable toolkits of hospitality business
for understanding the things which are considered by a service firms while performing their
business. Initially, most significant element will outline in the report that is financial department
because capital is a backbone for every business whether it is small, medium or large.
Furthermore, factors of human resources and legal norms will also have discussed in this
assignment for analysing their roles in business operation. Lastly, report will throw some lights
on effective communications and its significance in hospitality industry by showing suitable
situations or examples for better understanding.
ACTIVITY 1
1. Introduction of financial transactions
According to the given case study, existing business is specialised in making healthy
salads and offer delicious juices with smoothies by considering health of customers. Moreover,
opening of gymnasium next to the company is one of the major advantage for their growth as
sales of juices has increased through gym customers because it’s very healthy product. As a
result, idea of bringing alcoholic spirits into juices and smoothies is a best option nearby wine
bar but it is essential to consider financial aspects before opening it so that things can initially
forecasted. However, capital act as a backbone for business growth due to which thriving
enterprise need to get aware about various financial transactions for performing activities in
better way (Kysilka and Csaba, 2013). Basically, there are numerous kinds of transactions related
with finance are present which are discussed as follows-
 Sales- This function covers all the elements related with sales such as; selling of healthy
juices to end user and services offered to customers. Simply, it records the amount of
sales which is done by firm either in cash form and credit as a source of sale receipts.
 Purchase- Products which are purchase by company such as; raw materials for creating
finished goods like; use of milk for making juice in which milk is a raw material and
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