Finance and Funding in Tourism Sector: Accounting and Decision Making

This report delves into the crucial role of finance and funding within the tourism sector, examining how management accounting tools are used to inform decision-making. It begins by defining management accounting and its significance in the tourism industry, followed by an analysis of different types of management accounting information, including budget reports, financial statements, variance analysis, and financial projections. The report then explores how this information supports decision-making processes, such as long-term and short-term planning, and the role of management information systems. It highlights the importance of accurate financial data for effective strategic planning and operational efficiency. The report concludes by emphasizing the vital role finance plays in the success and development of tourism businesses, supported by the effective use of financial resources and accounting practices. References include sources on tourism management and financial analysis within the field.

Finance and Funding in the Travel
and Tourism
Sector
TASK 2

Table of Content
 Introduction
 Different kind of management accounting information which used in
tourism sector
 Use management accounting information as decision-making tool
 Conclusion
 References

Finance and Funding

Introduction
• Management accounting is identifying as a best term that can be
determined as assessment of business cost and operation .
• It support the administrator in formulating financial report as well as take
strategic judgement that assist in achieving objectives and goals of
respective organisation.

Travel and Tourism

Different kind of management accounting
information which used in tourism sector
 Budget Report
 Financial statements analysis
 Variance analysis
 Financial projections
 Management information system

Management accounting

Use management accounting information as
decision-making tool
Functions and duties of accounting information in taking judgements are –
• Long term and short term planning
• Management information system
• Optimum capital structure
• Role in management process
• Control

Long term and short term planning
• It forecasts various Economic and business events.
• Through this, organization can make long and short term policies and
plans in an effective manner.
• Evaluate market situations and make the marketing policies along with
the usage of operational systems.

Management information system
• MIS gives relevant and accurate data to the management and internal
users of organisation. .
• They can create general and routine statement related to expanses, profits,
sales and productions. .

Conclusion
• As per the above mentioned report, it can be concluded that finance is a
necessary and essential part of the business success and development.
• With the support of accurate fun and capital company do their all
activities and functions in an easy manner.

References
Buhalis, D. and Darcy, S. eds., 2011. Accessible tourism: Concepts and issues (Vol. 45).
Channel View Publications.
Choi, H.C. and Turk, E.S., 2011. Sustainability indicators for managing community tourism.
In Quality-of-life community indicators for parks, recreation and tourism management
(pp. 115-140). Springer, Dordrecht.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.

Thank You