Hospitality Business Toolkit

Hospitality Business
Toolkit

Table of content

INTRODUCTION
Hospitality industry refers to a broad scope of fields in the service industry that involves
food, drink service, theme parks, transportation, travelling, airline, living accommodations, case
designing and many additional fields within this industry. It is the level of assistance that is
provided by the hotel staff to facilitate the buyers i.e. clients. It includes various sectors like
hotels, casinos, amusement parks, events and other tourism- related services. This study is based
on Oakman inns and restaurant Ltd. that offers healthy food, rooms, wines, beers and cocktails
and it includes how to come through finance and record to minimise cost that is responsible for
hospitality sector and also manage the human resources life cycle within the HR scheme. It also
explains the actual effect on legal and ethical considerations in this sector. At last it describes the
importance of coordinating and integrating different purpose of departments within the
hospitality sector to grow their enterprise and revenues for longer term (Zvereva, 2019).
LO1
P1.
For successful organisation it is very beneficial to manage and watching the financial
performance. Regular monitoring the financial resources helps to earn more profits, regular flow
of cash, strong sales numbers etc. without managing no business can survive for long term. There
are various ways to monitor and managing financial performance of an organisation. Formulation of key financial statements- It is the primary methods or reports that a
industry needs to produce and maintain i.e. balance sheet and profit & loss account. This
process gives an financial overview and helps in knowing the monetary condition of the
business. It also helps in earning more profits and minimise the waste of resources that is
used in producing and manufacturing the offerings and knowing the stock and turnover of
a business (Singh, 2015).
 Preparation of funds and cash flow statements - It is an important process by which an
industry can manage and monitor their financial performance in the current market place.
In this cash flow and fund flow statement play a major role that provides a information
regarding how much liquid cash is coming into the business. It also shows a many
receivables that was marked as revenue but at the time of making cash and fund flow
1

statements it reveal that they are some type of hard currency and their business can run
with proper earning not with notional ones(Foster and Carver, 2018).
Business transaction
P2.
Double entry Book-keeping system refers to an accounting that means every business
require to record their business transactions and amounts in a minimum two accounts. Every
transaction of business affect the accounting equation of a industry. In this the amount of both
side i.e. debit and credit side must be equal. It has several principles of double entry system that
are as follows (Jarratt and et. al., 2019).
 The basic principle of book-keeping is recording all the transaction that is related to
business such as amounts, dates, gain, losses, expenses and sources of all revenues. It
helps the manager and owner for longer sustainability and smooth running of a business.
 It assures the arithmetical accuracy of books of accounts that means every debit equal to
the amount of credit. It prevents frauds and errors can be rectified easily.
 It is scientific in nature that gives an appropriate results easily. In this business and owner
both are separate entity.
2