Comprehensive Report: Financial, HR, Legal, and Operational Aspects

This report examines key aspects of financial and human resource management within the hospitality sector, using Healthy Rom, a London-based business, as a case study. The report delves into managing finances, including source documents, transaction recording, and cost minimization strategies. It explores the human resource lifecycle, legal and ethical considerations, and the importance of integrating various departmental functions. The report includes practical examples such as trial balances, ratio analysis, and profit margin calculations, demonstrating how financial performance can be monitored and improved. Accurate transaction recording in line with accounting principles is emphasized, and the report concludes with a critical evaluation of the role of financial management in ensuring business success within the hospitality industry.

INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
Investigate how to manage finance and record transactions to minimise costs responsibly
within the hospitality sector..........................................................................................................3
Task 2...............................................................................................................................................8
Assess how to manage the Human Resources lifecycle within the context of HR
strategy…………………………………………………………………………………………....8
Task 3...............................................................................................................................................8
Illustrate the potential impact of legal and ethical considerations on a hospitality
business………………………………………………………………………………………………….12
Task 4..…………………………………………………………………………………………...14
Explain the importance of coordinating and integrating various functions of departments
within the hospitality sector .......................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES………………..…………………………………………………………………16

INTRODUCTION
Hospitality sector conduct numerous activities that need to be managed by
management so set goals and objectives can be attained easily (Chung and Chung, 2018).
Hospitality industry includes hotel services, planning, lodging, theme parks, travelling,
transportation and many more all this directly or indirectly attracts customers to be a part of
the services. In order to raise the customer base organization need to serve goods and services
according to their expectation level. In the competitive market place there are many
organization who are offering hospitality services. It is successful in pulling customers
towards their entrainment services because of its unique strategies adopted by the
management . Healthy Rom is a new business which is located in London, UK. This new
enterprise is specialist in blended juices, smoothies and salads. This assignment includes,
distinguish phase of human resource life-cycle. Various ways for managing monetary and
recording transaction are deeply studied in order minimise cost. Additionally, influence of
lawful and moral consideration on hospitality enterprise is examined properly. However,
importance of distinguish functions and their integration is determined for the attainment of
best results.
ACTIVITY 1
An introduction to the financial transactions of your hospitality business by
identifying the types of source documents and the recording processes
you follow.
In the global market finance is the backbone of organization as with the help of this
business activities can be conducted smoothly. Health Rom is a eating house that is currently
launched in London and serve nutritious drinks to their targeted customers. This restaurant is
providing smoothies, salads and juices by this large market share can acquired in the global
market. Types of source documents identification and recording processes, document are,
Cheques received , petty cash vouchers, purchase Invoice and sale invoice they are explained
as under:
Cheques received: Financial transaction can be recorded with the help of cheques
received from the client. By this amount of cash inflow and out flow can be recorded easily
as well as management is able to take better decision in context of form's growth and
development.
3

Petty cash vouchers: It is a small piece of paper which is used to document a
payment from petty cash fund through this financial transaction can be ascertained because it
provide solid evidence at the timer of reconciliation of the amount which is remaining in the
petty cash fund. Management with the help of this can assure that capital in petty cash fund is
not misused in any manner.
Purchase invoice: It is a written document given to buyer by its seller in order to
provide payment in the specified time and also specifies the type of goods purchased. On the
other hand financial transaction can be recorded by this because it proves to the management
what product was purchased and how much was paid for it and what is the left amount.
Sale invoice: It is used by firm in order to communicate the client regarding their
amount due in exchange for product and services which have been sold. This provide legal
protection to both seller and buyer.
The cash inflow and outflow is monitored by finance manger of the company by using certain
information which are stated below:
Financial transaction: Here, a agreement is carried out between buyer and seller so
that payment of assets can be exchanged (Farrington and O’Gorman, 2018). It is a financial
dealing that take place among purchaser and marketer so as to exchange their assets. On the
other hand for Healthy Rom the monetary transaction for both buyer and seller is healthy
food and accommodation for which customers are paying. Whereas, for seller is selling out
the high standard healthy juices and food to their potential customers over the years. The
important source document needed is bookkeeping and accounting process. This is because
all these provide evidence of financial transaction conducted in the firm. Additionally,
finance manger of the firm can record daily transaction which will assist them to make
statement.
Investigate (look into systematically) the principles of managing and
monitoring financial performance of your business.
In the open market place cretin principles are adopted by Healthy Rom because they
aid firm to monitor and handle their monetary presentation (Walliman, 2017). The principles
of handling and motoring monetary presentation of Healthy Rom are explained as under:
Principle of risk and return: Heathy Rom is benefited by this principle because
through this top level management and investors are able to take right decision on
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investments. It directly helps in examining risk and return of the business project which aid in
handling cash amount and return on investments.
Diversity Principle: This particular principle is adopted by Healthy Rom in the
global market because it directly or indirectly assist in reducing the risk level by effectively
handling the portfolio. Here, organization's finance manger determine the level of threats and
risk which can be raised in the coming years and formulate strong strategies in order to
overcome them.
Explain the principles of double entry bookkeeping system of debits and
credits, using a standard data from your operations.
Principle of Double Entry Bookkeeping System: In an organization double entry
bookkeeping system is used by accountant in order to record the day to day tractions taking
place in the working premises (Foris and Foris, 2018). Credit and debit is the the two base of
this principle that aid in tackling all monetary related information. Double entry bookkeeping
system can be calculated as,
Assets= Liabilities + Equality
Example: Blended juices and smoothies are purchased on credit from the shopkeeper. In this
case, assets is debited for a specific amount and equal amount of liability is credited. It is the
main principles of double entry system where one is debited and other is credited.
Produce a basic Trial balance using a sample data, stating the steps used
and purpose of the Trial Balance.
Ratio Formula Particulars 2017 2018
Gross profit
margin
Gross profit / net
sales *100
Gross profit 250000 280000
Net sales 650000 700000
Gross profit
margin ratio
38.46 40
5

Ratio Formula Particulars 2017 2018
Net profit margin
ratio
Net profit / net
sales *100
Net profit 30000 45000
Net sales 650000 700000
Net profit ratio 4.62 6.43
Mark up ratio Gross profit /
cost of goods
sold *100
Gross profit 250000 280000
Cost of goods
sold
400000 420000
Mark up ratio 62.50 66.67
Return on capital
invested
Net profit /
capital invested
*100
Net profit 30000 45000
Capital invested 520000 565000
Return on capital
invested
5.77 7.96
Return on assets Net profit / total Net profit 30000 45000
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Ratio Formula Particulars 2017 2018
assets *100
Total assets 600000 640000
Return on assets 5 7.03
Return on equity Net profit /
shareholder's
fund *100
Net profit 30000 45000
Shareholder's
equity
435000 485000
Return on equity 6.90 9.28
Current ratio Current assets /
current liabilities
Current assets 155000 165000
Current liabilities 80000 75000
Current ratio 1.94 2.20
Acid test ratio Quick assets /
current liabilities
Quick assets 65000 75000
Current liabilities 80000 75000
Acid test ratio 0.81 1
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Ratio Formula Particulars 2017 2018
Debt ratio External
liabilities /
internal liabilities
External
liabilities
165000 155000
Internal
liabilities
435000 485000
Debt ratio 0.38 0.32
Capital employed
Total assets 600000 640000
Less current liabilities 80000 75000
520000 565000
Trial balance and its step are illustrated as under:
Trial balance introduce as a book keeping worksheet or general ledger account that
are covered in ledger of the business organization. It is used by the business associates in
their organization because it involves name of each nominal ledger account and value of
ledger balance. By this management is able to gain productive results as compare to rivalry
prevailing in the global market as well as they are capable enough to manage financial
information. In the competitive market place firm prepare trial balance because it ensures
that all the business activities like ledger are appropriately managed. On the other hand
financial statement is formulated by using all the entries. By this chances of error is reduced
to a large extent and monetary value in the company is utilized in much better way (Foster
and Carver, 2018).
Trial balance of Healthy Rom by involving income and expenses are stated as under:
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Particulars 31/03/18 01/04/17
Current assets
Cash and cash equivalents 20770 46860
Net receivables 14480 13780
Inventory 78100 75850
Other current assets 1090 16770
Total current assets 114440 153260
Long-term investments 4360 5150
Property plant and equipment 439390 483780
Goodwill 7740 7840
Intangible assets 52180 63060
Other assets 119560 97090
Total assets 737670 810180
Current liabilities
Accounts payable 87290 96750
Short/current debt 12530 51760
Other current liabilities 22260 22430
Total current liabilities 122080 170940
Long-term debt 162290 166340
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Other liabilities 109940 106240
Minority interest -250 -590
Total liabilities 394060 442930
Stockholders' equity
Common stock 40620 40620
Retained earnings 656040 661760
Treasury stock -442630 -428390
Capital surplus 41640 41640
Other stockholder equity -442630 -428390
Total stockholder equity 295670 315630
Net tangible assets 811810 929500
In order to formulate the trial balance certain steps need to be followed which are as
under:
 Three columns are needed for the preparation of worksheet. First column is for title,
second column is for credit and the remaining is for debit.
 All the recording are balanced systematically
 Total of credit and debit column are done
 After conducting all the above points compare the total of the columns.
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Analyse types of cost and how they can be managed to influence the
financial performance of your business and show how profit margins
can be calculated using an example of your choice
Calculation of profit and loss
Balance Sheet of
Paul Services as
at June 30, 2016
Assets $ $
Current Assets
Cash at Bank 91390
Accounts
Receivable
30460
Supplies 477.5
Prepaid
Insurance
3820
Total Current
Assets (A)
126147.5
Fixed Assets
Furniture 39800
Equipment 77600
Store Equipment 115400
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Balance Sheet of
Paul Services as
at June 30, 2016
Automobile 153200
Total Fixed
Assets (B)
386000
Total Assets [(A)
+ (B) = C]
512147.5
Equity and
Liabilities
Current
Liabilities
Accounts
Payable
60920
Interest Payable 110500
Unearned
Revenue
11950
Total Current
Liabilities (D)
183370
Long-Term
Liabilities
Loan Payable 9560
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