Hospitality Business Toolkit: Financial and HR Report

This report provides a comprehensive analysis of a hospitality business, specifically focusing on the Sunborn Hotel in London. It begins with an introduction to financial transactions, detailing source documents, the double-entry bookkeeping system, and the creation of a trial balance. The report then delves into cost analysis, differentiating between fixed and variable costs and their impact on financial performance. Furthermore, the report examines the HR life cycle, talent acquisition and retention within the food and beverage sector, performance management plans, and relevant legislation. The report includes practical examples and recommendations, offering insights into effective financial management, HR practices, and compliance within the hospitality industry. The report also includes a profit and loss statement and a trial balance, along with detailed explanations of each component. The report concludes with recommendations for improved financial and operational performance.

Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
An introduction to the financial transactions of hospitality business by identifying the types of
source documents and the recording processes...........................................................................3
Explain the principles of double entry bookkeeping system of debits and credits, using a
standard data from your operations.............................................................................................4
Produce a basic Trial balance using a sample data, stating the steps used and purpose of the
Trial Balance...............................................................................................................................6
Analyse types of cost and how they can be managed to influence the financial performance of
business.......................................................................................................................................7
Discuss the importance of accurate recording of transactions....................................................7
Recommendations and conclusion..............................................................................................7
PART 2............................................................................................................................................8
Explain different stages of the HR life cycle as applied issues in talent acquisition and
retention within the food and beverage sector............................................................................8
Evaluate each stage of HR life cycle and importance HR plays in supporting, growing and
retaining talent applied to the specific job role...........................................................................8
Develop a performance management plan to support the specific job role................................9
Recommendations.....................................................................................................................10
Identify legislation that hospitality organizations have to comply...........................................10
Illustration of how the company’s employment and contract law impact on business decision-
making.......................................................................................................................................10
Reflection..................................................................................................................................11
Explain the different functional roles within the hospitality sector and how they interrelate
using an organization chart.......................................................................................................11
Explain the different communication methods and levels used in an organization..................11
CONCLUSION ............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality industry is a large category of fields within the service industry that focus on
customers satisfaction. Main motive of hospitality businesses is to provide various
accommodation services to its customers (Adeola, 2016). Customers of hospitality business
expect highly managed and quality services from the hotels and its staffs. Hospitality industry is
also associated with providing best quality of products and services within their business so that
they can provide better customers satisfaction.
This report is based on Sunborn Hotel, London, it is floating super yacht hotel docked in
Royal Victoria Bock. Hotel provide excellent services to its customers. Hotel provide 24 hour
front desk. they also provide various offers on the bookings of tickets services and tour desk.
With the high level of quality services and customers’ satisfaction company manages to have
stable growth in hospitality industry. This report include various principles of managing and
monitoring financial performance, different stages of HR life cycle, performance management
plan, legislation that hospitality business has to follow and in the end various examples of
employment and contract law that have an impact on the business of hospitality business.
PART 1
An introduction to the financial transactions of hospitality business by identifying the types of
source documents and the recording processes.
Introduction to the financial transaction:
Financial transactions refer to the record of all the inflow and outflow of funds within an
business. These transaction directly impact the profit and loss of particular organisation,
company record every business transaction in order to have insight about the profit or loss of
business (Ariffin, Maghzi, Soon, and Alam, 2018). In the context of Sunborn Hotel, Financial
transaction helps its business to provide their investors a safety of compliance and statutory law
so that they can invest in business.
Sources documents are the documents that contains all information about business
transactions. They capture key information about transactions such as names of parties, amount
paid date if given and the substance of transactions. In the context of Sunborn hotel, there are
different source documents that company use such as cheques, journals, cash vouchers, sales
credit notes, purchases credit and many more.

Principles of managing and monitoring financial performance:
Managing and monitoring financial performance is very important for the business to
enhance record of all the transaction in most appropriate manner(Baker, and Magnini, 2016).
There are various principles that Sunborn hotel use in order to manage their financial position.
Below are some principles are explained that company use.
Consistency: All the transactions of the business must be handled in consistence manner,
to manage and monitor financial performance it is important to maintain financial transaction
with appropriate procedure and policy. Sunborn hotel use this principle in their business and
maintain similar type of transactions in routines manner.
Timeliness: All the transactions must be handle within reasonable period of time,
consistency with time frame assist the enhancement of financial performance. Finance managers
of Sunborn hotel ensure that they maintain all the financial accounts on timely basis.
Justification: This principle is related to justification of all the books and records of
company and it ensure that there must be an reason for the transaction that support the goals of
business. For managing financial performance of the Sunborn hotel, company focus on
justification of all the data and transaction in order to gain better insight about the financial
performance. It helps to ensure that all the transaction within the organisation must support its
objectives and goals.
Documentation: Sunborn hotel, use this principle for the actual documentation for
managing all the financial performance of the hotel. Manager of Sunborn manage all the
documents of the financial transactions in appropriate manner so that it can help to manage
overall functions during year. Managers of the company also ensure that they have significant
documentation to support the transaction within business.
Certification: In this principle managers of Sunborn ensure that all the transaction must
be approved from the higher authority and carry all authorized signatures.
Explain the principles of double entry bookkeeping system of debits and credits, using a standard
data from your operations.
Profit and loss statements:
This statement of business refers to all the financial statements that summarise the cost,
expenses, revenue, during the financial year of the company. Statement show all expenses and
profit of business the during financial year. It also helpful for business and management to

understand about its ability and inability to generate profit. This explains how business can
reducing expenses, increasing revenues, and reducing cost of production. This is double entry
book keeping system, and it show all debit and credit transactions .
Profit and loss statement of Sunborn Hotel:
Profit and loss statement of Sunborn hotel for March 2020
Particulars Amount Particulars Amount
To Opening
Inventory 17000 By Sales
14500
0
To Purchase
63
00
0 Less : Return Inward -3200 141800
Less : Return
Outward
-
18
00 61200 By Closing Inventory 21000
To Gross Profit 84600
Total 162800 Total 162800
To
Administration
Cost 33000 By Gross Profit 84600
TO Distribution
Cost 30500
To Depreciation 9000
To Finance Cost 1600
To Tax 2100
To Net Profit 8400
Total 84600 Total 84600
Effective recordings of debit and credit:
In this all the expenses and income of business are recorded, in the form of debit and
credit entries. Business should manage all the debit and credit entries in appropriate manner so
that appropriate presentation can be done (Filimonau, V. and Delysia, A., 2019). Sunborn

hotel, effectively manage all the credit and debit entries in order to have insight about the
annual profit and loss. Managers of respective company ensure that all the transactions are
recorded in the profit and loss account should have certification from the higher authority.
Produce a basic Trial balance using a sample data, stating the steps used and purpose of the Trial
Balance.
Trial balance accounts are prepared at particular date with the ledger balance to test the
accuracy of the ledger accounts(Korstanje, M.E., 2020). Trial balance of Sunborn hotel, are
prepared on during the financial year so that statements can be prepared accurately. In the trail
balance of the hotels all the accounts are to be balanced at the end of accounting period.
Trial Balance of Sunborn Hotel:
Trial Balance for Sunborn hotel
Particulars Debit Credit
Storage Cost 500
Purchase 10500
Sales 14600
Motor
Expenses 530
Cash at Bank 54000
Cash in Hand 18700
Payables 29100
Premises 250000
Van 52250
Fixtures 8350
Inventory 23200
Receivables 15420
Sales Return 900
Purchase
Return 70
Salaries 5000
Business Rates 1480

Capital 397060
Total 440830 440830
Analyse types of cost and how they can be managed to influence the financial performance of
business.
Fixed cost: It refer to the expense that do not change over time or depend on the
production of company. It include any expense that business pay and that remain same regardless
change in the sale and production of the business(Murillo, E. and King, C., 2019). In the context
of Sunborn, hotel pay several fixed expenses to stay operational, fixed expenses of hotel does not
fluctuate with the change in production and profitability. Sunborn manage their fixed expenses in
appropriate manner to increase their operating leverages and higher operating leverages could
helps business to produce more profit.
Variable cost: This are the expenses of business that change with the increase and
decrease in the numbers of produced items (Casado-Díaz, and Simon, 2016).
Discuss the importance of accurate recording of transactions.
It is very important for every business to maintain up to date recording of accounting
system. Well-kept transaction helps business to record all the expenses accurately, also it assists
organization towards an insight about the business and its growth. It is essential for Sunborn to
prepare accounting statements over fixed time and accurately, it also provides all the information
about base to all the business decisions. It helps in keeping good tack of organisational expenses,
debts, and creditors. It also assist hotel's business to pay tax, accurately and on time in order to
enhance their business performance.
Recommendations and conclusion.
From the above information it can be conclude that appropriate formation of all the
transaction of business helps to have insight about financial performance. It can be recommended
to the respective organisation that in order to make effective financial statement of company,
organisation should maintain certified record of all the transaction. Organisation should manage
fixed and variable cost in appropriate manner in order to enhance financial performance.
Sunborn should manage all the inflow and outflow of fund in order to gain profitability and
effective operational performance.

PART 2
Explain different stages of the HR life cycle as applied issues in talent acquisition and retention
within the food and beverage sector.
Human resource helps business to effectively manage people at work place and enhance
their performance in such manner that helps business to have stable growth and profitability. The
managers of Sunborn hotel, ensures that they follow human resource life cycle in most effective
manner that can assist them towards talent acquisition and retention of talented and skilled
employees in the organization.
Human resource life cycle:
This refers to the stages followed by the employees of hotels in order to enhance the level
of effective performance within an organization (Iordanoglou, 2018). Manager of Sunborn
ensure that they select right people at right role and they continuously focus on development and
engagement of employee at work place in order to retain them with organisation.
Recruitment: This process of human resource assist managers of Sunborn to fulfill all
the vacant position in the hotel, they use various steps in order to fulfill the needs and wants of
talented and skilled employees in the organization.
Selection: In this human resource managers focus on selection of right candidates for
right jobs according to their qualification. The human resource manager of Sunborn hotel is
focus on the selection of best candidates in the hotel so that it can help them in better growth and
profitability in the global competitive market.
On boarding and Orientation: Orientation is one time event that company organize in
order to welcome their new employees and provide them basic information about company and
the jobs they have to perform within in organization. Whereas on boarding is an series of events
where managers helps their subordinates to understand about their jobs and how they can
contribute towards the organizational goals and objectives.
Evaluate each stage of HR life cycle and importance HR plays in supporting, growing and
retaining talent applied to the specific job role.
Attraction, Recruitment, selection: In this stage of HR life cycle organization focus on
attracting the new and fresh talent in the organization. In the recruitment stage mangers of
Sunborn take interview of the candidates for the vacant positions (Jang, and Kandampully,2018)

in the hotel and select them according to their qualification and capabilities. This helps hotel to
attract and select talented and skilled employees and retain them with the organization.
Induction, orientation, on-boarding: In the induction and orientation process managers
of Sunborn, introduce the employee to the job and organization. Whereas, in on-boarding
company organize events over period of at least 80 days, that assist new employee to understand
about the various functions of jobs and adjust their performance on social asspects.
Career planning and development: Managers of Sunborn, ensure that they provide
proper training to their employee in order to enhance their career within an organization. They
also ensure that employee working within company have continuous process of learning in their
jobs in order to enhance their skills and capabilities.
Employee Retention: In this stage managers of Sunborn ensure that they retain talented
and skilled employees within an organization. It helps organization to enhance its productivity
and growth in the competitive market.
Develop a performance management plan to support the specific job role.
Performance management plan:
It is a continuous process of improving performance by the enhancement of individual
and group goals and objectives. Performance management plan helps business to achieve all
strategic plans and objectives (Karytsas, Vardopoulos and Theodoropoulou, 2019). HR
Managers of Sunborn focus on better implementation of performance plan in order to achieve
better performance of the employees and staff of the hotel. They encourage employee towards
the achievement of organizational goal and objectives. Managers ensure that they enhance the
performance of staff members in most effective manner so that they can help them to enhance
customer’s satisfaction.
Plan: This stage of performance management helps managers of Sunborn make plan after
evaluation of employee performance and their ability. The manager ensure that they make plan
according to the goals and objectives of organization in order to achieve better performance and
goals of the company. They also focus on employee goals within an organization.
Track or monitor: In this stage of performance management managers of Sunborn
ensure that they monitor and track (Nurjaya, 2018) the performance of employees. Also they
monitor that whether employees are capable to meet expected performance or not, they effective
meeting deadline given by the organization or not.

Review: In this stage managers of Sunborn analyze and asses that employee meet to the
expected performance of the company on given period of time. They ensure that employee work
for better achievement of goals and objectives of the company.
Rewarding: In this managers of Sunborn give monetary and non monetary rewards to
their employees for their effective and excellent performance within in organization.
Recommendations.
From the above information it can be recommended to the Sunborn, hotel should manage
and control performance management plan in most effective way to reduce the conflict within an
organization. They can provide effective training and learning programs for their employees, it
can help them to perform effectively within the organization.
Identify legislation that hospitality organizations have to comply.
Legislation is define as the law and regulation that governed by the government of UK
(Oskam, Dekker, and Wiegerink, 2017). This are made for the safety and protection of
employee working within in organization. In the hospitality industry there are various legislation
and law of the government in order to ensure the safety of employees and customers.
Implementation of legislation increase various challenges for the hospitality industry.
Environmental Legislation Act, 1974: This refers to the various issues occurs due to the
industrial wastes and impact of those waste on air, water, and nature. The Sunborn hotel is using
various business practices that helps them in the management of waste in most appropriate
manner that ensure it could not harm the environment.
Food Safety Legislation Act, 1990: This act is focus on the major responsibilities of
food and beverage industry and the quality of food products. This legislation ensure that hotels
made food products with optimal quality standards and contains it in appropriate manner.
Illustration of how the company’s employment and contract law impact on business decision-
making.
There are various impact on the strategic decision making of the business by the various
law and regulation of government on the hospitality industry. Hospitality business also face
several rules and regulation of government and it have an huge impact on its business.
Employment law: This law is made for the regulation of relationship between employee
and employer and several law for the hiring and employment process (Rhou, and Singal, 2020).

This law could impact the decision making process of company in order to hire new employee.
There are also minimum wages law in the UK, that could also impact the business of respective
company.
Company law: A company law is an body of law governing the rights, relation, and
conduct of person, company, organization, and business. Sunbron may be organize in various
ways for tax and financial liability on the purpose of depending on corporate law.
Reflection.
From the above information I understand that there are various rules and regulation of the
government that have an impact on the decision making process of company. I also understand
that in hospitality industry legislation has an huge impact on the performance and effectively of
business. To follow all the rules and regulation is important for the business in order to have
smooth functioning of business. Various legislation apply on the business increase the level
sustainability and effectively of responsible business.
Explain the different functional roles within the hospitality sector and how they interrelate using
an organization chart.
Housekeeping and front desk: This are the two key departments in hospitality sector, it
is very important for the organization to manage all the functions of the hotel. Housekeeping
department has the all the responsibilities of cleaning of rooms and kitchens of the Sunborn.
Front desk is concern with arrival and departure of guests in the organization. Front desk
department give instruction to housekeeping department according to the bookings of rooms, and
housekeeping department follow all the instruction and provide proper maintenance of rooms.
Food and beverage services and food production department: This department of the
organization is concern with the management all the food and services of the company in order
to provide better satisfaction to the customers of the company. Both the department work
according to the needs and wants of the customers and provide them best quality of food and
beverages.
Explain the different communication methods and levels used in an organization.
There are various communication methods that company can use, below are some
methods of communication in the context of Sunborn.

Verbal communication: This method of communication used to express ideas,
information, opinions etc. an effective verbal communicator is clear about the message they
want to convey to the listener. It is very important for the managers of Sunborn to maintain
positive tone of voice while communicate with their subordinates. Hotel use various verbal
communication methods such as meetings, conference calls, project discussion, presentation etc.
Non verbal communication: Common aspect of non verbal communication is body
language. Communication with body language include body movements, postures and gestures.
CONCLUSION
From the above information it can be conclude that management of hospitality business is
an important factor that helps in effective financial performance and growth of business in the
competitive market and achievement of all organisational goals and objectives. There are some
rules and regulation of government that have a huge impact on the business hospitality industry.
The business functions and coordination of integrating business helps in better functioning and
growth of the hotel industry in most effective manner.