The Hospitality Business Toolkit

Unit 4: The Hospitality
Business Toolkit

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Part 1................................................................................................................................................3
Management of finance and record of transactions to minimise costs responsibly within
hospitality industry UK...............................................................................................................3
The double entry system of book keeping..................................................................................3
Part 2................................................................................................................................................6
Managing HR Life Cycle, a Human Resource Strategy.............................................................6
Part 3................................................................................................................................................9
Legislation and Ethics in Hospitality Industry............................................................................9
Part 4..............................................................................................................................................11
Hospitality Functions and Departments....................................................................................11
Methods of communication, coordination and monitoring in House keeping department of
Hilton Hotels.............................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
In this report an analysis of the Hilton hotel's UK financial management with insight of
how to reduce costs is made. Along with the assessment of the HR life cycle within HR strategy
is made. Further the impact of legal and ethical consideration on the hospitality business is
defined. At the end importance of coordination and integration of the functions in the hospitality
sector are described.
MAIN BODY
Part 1.
Management of finance and record of transactions to minimise costs responsibly within
hospitality industry UK
Any industry or the organisation i.e. Hilton Hotels to survive for long the management of
the funds are to be made in a proper and efficient manner. For the purpose of managing finance
within the Hilton Hotels, standards for recording transactions of the businesses has been set.
These standards help in the record of the transactions, analysing the records and interpretation of
those transactions are made to analyse the performance of the Hilton Hotels. To check for the
performance various key indicators are derived viz. Ratio analysis, cash-flow. The financial
resources and requirements are monitored and managed through using management accounting
principals. Management accounting is a part of financial accounting for the businesses used to
calculate costs of the business activities and strategic decisions are taken on the basis of the
results derived to reduce costs and improve financial performance (Brigham and Houston, 2021).
Management accounting uses various tools and systems to control and management of cost
drivers. These systems are cost accounting, inventory management system, job costing system
and price optimisation. Along with preparation of budgets and calculation of variances and key
performance indicators the management and performance of Hilton Hotels are evaluated.
The double entry system of book keeping
This system of recording transactions for to maintain books of accounts is known as
double entry system of accounting. In this system every transaction of the business has double
effect that is debit or credit transactions. The amount of credit is same as the amount of debit
because of the dual effect of any business transaction. Example: If the owner of the business

invested capital in the business (Fellingham, 2018). So, this transaction has dual effect that cash
is recorded at the debit side which is asset to the business and capital is recorded at the credit
side which is liability to the business. The concept of double-entry book keeping is illustrated by
treatment of Purchase and sales transactions of Hilton Hotels below:
Journal Book of Hilton Hotels UK
Date
Particulars Ref
Amount
2021 Debit Credit
Mar 3 Purchase of Groceries and Provisions £80000
Cash £80000
Mar 8 Purchase of Bedsheets £10000
Purchase of Furnitures £120000
Bank £130000
Mar 15 Cash £39000
Sales through Room charges £39000
Mar 25 Bank £6000
Sales of food and beverages £6000
Total £255000 £255000
Ledger Book of Hilton Hotels UK
Cash Account
Date Particulars R
e
f
Amount Date Particulars R
e
f
Amount
Mar-15 Sales through Room
charges
£39000 Mar-3 Purchase of Groceries
and Provisions
£80000
Mar-31 Balance c/d £41000
Total £80000 Total £80000
Apr-1 Balance b/d £41000
Purchase Account