Report on Financial Management, HR Lifecycle, and Legal Aspects

This report delves into the multifaceted operations of the hospitality industry, using East London Catering as a case study. It investigates the principles of managing and monitoring financial performance, emphasizing budgeting and risk management. The application of the double-entry bookkeeping system is demonstrated through sales and purchase transactions recorded in a general ledger, and a trial balance is produced to ensure the accuracy of financial entries. Furthermore, the report reviews the HR life cycle stages, including attraction, recruitment, onboarding, enablement, development, retention, and separation, and their significance in retaining and developing talent. The report also touches upon the legal and ethical considerations that impact the hospitality business. The analysis provides practical insights into the financial, human resources, and legal aspects of running a successful hospitality business.

Hospitality Business
Toolkit

INTRODUCTION
As hospital industry are considered as very wide and complex industry because large
number of different type of activities are involve in it. These services are related to travelling,
catering, event management, food, restaurants, hotel facility, cruise, theme park etc. It is known
as most famous developing industry which tends to contribute towards economic development as
well as prosperity. The industry that was selected in this project is Hospitality. In this we choose
the organisation East London Catering which is specialised in weddings, Birthday parties, family
gathering, events. It serve their services to the audience of London. The topics that are discuss in
this assignment are Investigations in what manner transactions, and finance can be managed in
order to minimise cost responsibility with in the hospitality sector , how HR life cycle can be
manage in context to HR stategy. Affect of legal as well as ethical consideration on hospitality
business are briefly discuss by giving examples in this report. Importance of integrating as well
as coordinating various functions of different unit in context to hospitality sector are explain
under it (Hassanien, 2010)
TASK 1
P1. Investigate the principles of managing & monitoring financial performance.
Financial performance indicates the capability of company to earn money. Financial
performance are analysis of actual position of organisation in terms to revenues or earning. It can
be measure time to time to known the financial status of the firm. On the basis of this only,
decision making is done for the purpose of investment. The business success is totally depends
on financial performance because if the entity is not financially strong or their related
performance is low that it leads to increase the chances of business failure.
Principles of controlling financial performance
There are various principles to monitor & manage financial performance as these are
timeliness, Justification, Certification, Documentation, consistency. As East London catering
company manage all their financial transactions with the help of their smart team of finance. This
will provide support to business to effectively increased productivity. Few examples to serve the
purpose in the organisation are discuss briefly below mentioned paragraphs such as -

Systematically organise finances- It is initial stage to create wealth. Budgeting software are used
by East London catering to provide complete solution to track bank account, mortgages, personal
loan, car loans, brokerage account etc. through taking entry in it. We are in the situation to spend
less time to get organised and having more time to make sense of situation (Lee-Ross, 2010) Spend less : East London catering use financial software , which is a powerful tool that
help to track as well as to budget their spending which support company to achieve long
term goal. Risk and return principle- To get high return there is requirement to take more risk also.
Because all the projects which gives high return must involve heavy risk. East London
catering company adopt this principle because they always taking risk in business
activities and earning high level off profit. To manage the function effectively it is most
commonly used by company Pay attention toward taxes: As the software financial planning help the organisation to
manage all the tax related information. Taxable investment can be analysed quickly with
the help of this software. Taxable investment are quickly analyse due to which tax filing
go much smoother.
Diversity principle. This portfolio contains a variety of assets. It also includes a variety of assets
that are less risky than a portfolio. As the finance manager of an East London catering firm, I use
this technique to analyse situations that are more dangerous in order to solve them. (Reich, 1997)
P2. Application of double entry book keeping system of debit and credits to records sales and
purchase transactions in a general ledger.
Double entry book keeping is the method to record transactions which are related to
business. In this system amounts are placed into two accounts such as Debit and Credit. As per
accounting rule values are recorded in Dr. or Cr. Side. To making record of purchase and sales,
East London catering company use the system of double entry -
Into various categories like advertising, capital, promotion, material , apportionment of expenses
are done in the company (Reich, 1997)
 The payment of bill can be utilised within the date which is specified together with
considering all the expenses.

 The system of bookkeeping includes tally of the business & their income in an
appropriate manner. This can be done with the help of transaction that are related to
purchase and sales.
 The presentation of journal entries into ledger are as follows-
 Cash account
Particulars Amount Particulars Amount
To Capital account 30000 By Store rent account 1000
To sales account 20000 By Washers and dryers 10000
To sales account 13000 By insurance account 1200
By laundry account 200
By telephone account 2220
By Water account 950
By wages and salaries
account
1740
By balance c/d 45710
Total 63000 Total 63000
 Sales account
Particulars Amount Particulars Amount
To balance b/d 33000 By cash account 20000
By cash account 13000
Total 33000 Total 33000
 W.H Adams account
Particulars Amount Particulars Amount
To balance c/d 15000 By purchase account 7000

By purchase account 8000
Total 15000 Total 15000
 Wages and salary account
Particulars Amount Particulars Amount
To cash account 1740 By balance c/d 1740
Total 1740 Total 1740

 Water and refuse account
Particulars Amount Particulars Amount
To water and refuses account 950 By balance c/d 950
Total 950 Total 950
 Telephone and Internet account
Particulars Amount Particulars Amount
To cash account 2200 By balance c/d 2200
total 2200 Total 2200
 Credit account
Particulars Amount Particulars Amount
To balance c/d 15000 By washer and dryer account 15000
Total 15000 Total 15000
 Laundry account
Particulars Amount Particulars Amount
To cash account 200 By balance c/d 200
Total 200 Total 200
 Washers and Dryers account

Particulars Amount Particulars Amount
To cash account 10000 By balance c/d 25000
To credit account 15000
Total 25000 Total 25000
 Store rent account
Particulars Amount Particulars Amount
To cash account 1000 By balance c/d 1000
Total 1000 Total 1000
 Capital account
Particulars Amount Particulars Amount
To balance c/d 30000 By cash account 30000
Total 30000 Total 30000
 Insurance account
Particular Amount Particular Amount
To cash account 1200 By balance c/d 1200
Total 1200 Total 1200
 Purchase account
Particulars Amount Particulars Amount
To W.H Admans 15000 By balance c/d 15000
Total 15000 Total 15000
Interpretation-
The journal entries are recorded into the ledgers to reflect the year's closing balance. The
closing balance of the right side of the balance sheet, which is debit, is moved to the left side,

which is credit, and vice versa. This is done so that the business can keep track of its transactions
and use them in the future.
TASK 2
P3. Produce basic trial balance applying the use of the balance off rule to complete the ledger.
A trial balance is a worksheet that transfers all of the ledger accounts' closed balances, as
well as two debit and credit account columns, where all assets and expenditure are debited and
all commitments and revenue are credited. This is frequently prepared by the company toward
the end of the year in order to ensure that all entries are correctly computed.
Trial balance-
Particulars Amount
(Debit)
Particulars Amount
( Credit)
Cash 45710 capital 30000
Insurance 1200 Sales 33000
Store rent 1000 Credit 15000
Washer and dryer 25000 W.H Adamns 15000
Laundry 200
Telephone 2200
Water and refuges 950
Wages and salaries 1740
Purchase 15000
Total 93000 Total 93000

Interpretation- A trial balance is generated to determine whether journal entries have been
correctly posted, which aids in the preparation of financial statements like as the income
statement and balance sheet, since it provides a truthful and fair picture of the company's
financial status.
P.4. Review the different stages of the HR life cycle applied to a specific hospitality job role and
their importance for retaining and developing talent ?
To run the business, to perform managerial function and to handle operation ,
management staff of organisation East London catering use different HR life cycle stages as the
respective process are explain in below paragraphs -
Attraction- it is initial stage where huge number of workforce are choose so that they can
easily perform job role. The process that follows to capture large number of people to perform
the task and to fill the vacant position. East London catering company implement this step in
their company to attract skilled and experienced workforce so that they are capable to complete
the work on time which is assigned to them by managers at the time playing the role of caterers.
Recruitment- For business growth it is important to appoint most suitable candidate for
the job. In East London entity , strategic staff planning is perform by Human Resource manager
so that appropriate people who can play the role of caterer are hired by them at the right time .
For that many rounds of interviews are conducted by HR team (Lashley, C., 2008)
On boarding- It is an activity perform by HR which is commonly known as induction. In
this new staff or candidate introduce to the job which they tends to perform in their employment
as well as introduction to workforce are also done so that they become familiar to the business of
catering .Through implementing this step, East London catering hire employees ready who are
ready to take new responsibilities, learning job duties as well as to develop healthy relationship
which help organisation to perform well. Their major role is that to grasp the opportunity
immediately from the market and also they acts as marketer and create awareness regarding the
product. (Andersson, 2002)
Employees in the hospitality industry perform various roles so new individuals are
appointed to perform following roles few of these are explain in bullet points such as –

 Employee in the hospitality industry play an important role as they work on to clean
the following thing on regular basis such table cloth , curtains, bedsheet, pillow
covers etc.
 Employee also play a role of chef as this is the most important role an individual
perform in hospitality industry. Because he is the only person who prepare delicious
and tasty food to their customers.
 Role of caterer is also played by employee at the time when any event is organized
in their hotels. In this their job role is to serve food and making arrangement of
required number of utensils and crockeries.
 Event manager role is also played by new employee if there is some function
organised in their hotels .
.
Enablement- In this, orientation programme are conducted in which new employees are
tends to formally introduce He make the company mission, vision, culture, environment,
employees etc. east London catering company introduce their new catering staff with
organisation heath & safety policies, workforce compensation, retirement benefits, wages &
salaries as well as terms of employment etc.
Development- this stage is concerned to workforce and HR department which leads to
increase business productivity by achieving long term objectives . As career development
opportunities are offer by East London catering company to their workers who perform the role
of caterers so that their workforce can attach to company for long term (Gursoy, 2004)
Retention- this stage provide opportunity to workforce for their devotion and hard work
as they considered by top management as most precious assets of company. This give
satisfaction to employees who act as caterer which results to retention for long term. East
London scattering entity give their human resource benefit of flexible working hours, overtime
pay, retirement benefits, amenities, perquisites, compensation, gift cards as well as commission
and incentives so that their staff get satisfied and motivate which leads to connect employee with
company for long term (Hayes, 2009)
Separation- Every cycle is come to an end in their last stage. In this employees get
separated from their employer due to the reason of superannuation, retirement, permanent

disability, retrenchment, due to death etc. The East London Catering firm face separation of
employee from the company due to the reason of retirement on attaining the age of 60 years.
As the life cycle is followed when the employee plays the role of marketer and sales
executive in the organisation to create awareness about the product and services (Peters, 2019)
P.5. Develop a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behaviour and overcome issues of staff retention ?
Performance management plan is the process in which the activity related to aligning,
managing, coordinating, communicating are perform by the workforce that are available in the
organisation. From whose support company can achieve the objectives of the company.
Effective results are gain if proper management plan is adopted. It tends to improve productivity
as well as profitability of the business. Increasing labour turnover and reducing outcome are the
issues that East London catering company can face so to overcome with the problem
performance management plan is developed by executives of concern as this plan are explain in
detail in below paragraphs.
Plan: In this, management team of the organisation set objectives and do planning and
formulate strategies to improve the performance of company. To eliminate confusions and
conflicts as well as to reduce workforce turnover, planning is done by managers of the firm. East
London catering company formulate plan and share this with the staff. Through implementing
this plan goal can easily be achieved and profitability of the concern also tends to be increase.
Monitor: This means to record and monitor the performance of work force when they
plays the role of caterers in order to awarding as well as completing task effectively. This step is
followed by management team of East London catering company, after framing effective
strategic plan. In this, role of manager is very crucial , manager try to understand suitable
strategy and after that measure performance of employees and also provide guidance time to time
which helps to overcome the negative behaviour. By doing arrangement of Training and
development programme , skills and knowledge of employees are also be improve which
supports them in accepting challenges and problems in order to turn issues in to opportunities
(Kampani, 2020).
Review: It is the last stage of performance management plan it is used to review the
activities after monitoring caterers performance by top management at regular interval of time.

So, productivity can be increase effectively. various hurdles are overlook by East London
catering company with the help of it and also by monitoring the functions time to time,
improvement can bring in organisation. It develops good feeling in the employees and if they
feel good they tends to do work which results to increases productivity and also develop feeling
in workforce to retain in the company for long term (Maier, 2009)
TASK 3
P6. Identify specific legislation that a hospitality organisation has to comply and adhere to.
To accomplish a plan in successful manner it is important to work as per the rules and
regulations that are set by government so that to avoid conflicts and bias.
Health and safety Act 1974- This laws are concerned to persons who are engaged in the
company. As per this provision employer should construct such type of structure which provide
safe and healthy environment to human resources because they are most precious element for
any business whether is small, medium and big organisation. Employer of the organisation East
London provide facilities to their workers / employees such as canteen, wash rooms, rest room
for ladies, Proper lighting facility, provide clean water facility, neat and clean floor etc . In this
way they make arrangement and follow all the rules and regulations which leads to provide
satisfaction to customer
Equal remuneration Act 1970- This law is formulate by government to avoid
discrimination in the working place in context to age, gender, colour, religion, language etc.
because it leads to raise the chances of harassment in the place of work. In the company East
London equal remuneration are given to all for the similar task so that no one can feel inferior.
Also it provide equal opportunities to all that gives satisfaction to workforce as well as make
their employees happy
Minimum wage Act 1998 - For this special provisions are frame with the intension to
provide security to the workers/ employees who are engaged and connected to organisation. As
per this law , it is the responsibility and duty of owner to provide to their workers minimum
wage , who comes under this act. East London catering company calculate or fix wages for the
employees as the act and also according to law overtime rate are also fixed as these facilities
help employees from exploitation.