Financial Management & HR Strategies in Hospitality - Report

This report provides a comprehensive overview of essential aspects within the hospitality sector, focusing on financial performance management, the HR life cycle, and legal compliance. It begins by investigating the principles of managing and monitoring financial performance, applying the double-entry bookkeeping system, and producing a basic trial balance. The report then reviews the different stages of the HR life cycle, emphasizing their importance for retaining and developing talent within a specific hospitality job role, and develops a performance management plan to address negative behavior and staff retention issues. Furthermore, it identifies specific legislation impacting hospitality organizations and illustrates the potential impact of company, employment, and contract law on business decision-making. Finally, the report explores the interrelation of different functional roles within the hospitality sector and explains various methods of communication, coordination, and monitoring to strengthen the value chain. The management strategies discussed are relevant to Fresh ‘N’ Funky Catering, highlighting the importance of effective financial and HR practices for maintaining a competitive edge in the marketplace. Desklib offers a variety of resources for students, including past papers and solved assignments.

Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Investigate the principles of managing and monitoring financial performance.....................4
Apply the double entry book-keeping system of debits and credits to record sales and
purchases transactions in a general ledger..............................................................................5
Produce a basic trial balance applying the use of the balance off rule to complete the ledger16
TASK 2..........................................................................................................................................16
Review the different stages of the HR life cycle applied to a specific hospitality job role and
their importance for retaining and developing talent...........................................................16
Develop a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behaviour and overcome issues of staff retention.......17
TASK 3..........................................................................................................................................19
Identify specific legislation that a hospitality organisation has to comply and adhere to....19
Using specific examples illustrate how company, employment and contract law has a potential
impact upon business decision making in the hospitality industry......................................20
TASK 4..........................................................................................................................................21
Explore how different functional roles within the hospitality sector interrelate..................21
Explain the different methods of communication, coordination and monitoring applied within
a specific department of a hospitality organisation to strengthen the value chain...............22
CONCLUSION..............................................................................................................................24
REFERENCES..............................................................................................................................25

INTRODUCTION
A hospitality unit involves restaurant, hotel and entertainment area and as well as several
sections of maintenance of services and direct functions in respect to serve customers in an
effective way. It is a lavish sector that depends on availability of leisure time, usable financial
gain of satisfaction for gaining desirable result. The management consider in this report is Fresh
‘N’ Funky Catering. It has launched a new and effective term of individual packaged meal that
can be offered to groups of individual at home or workplace. The following report covers the
research on the manner to maintain the finance and record transactions in respect to decrease the
cost responsible for hospitality section (Ben-Lulu, and Feldman, 2021). Furthermore, it involves
the manner to maintain the human resource life cycle with HR tactics in respect to be
competitive in marketplace. At last it covers effective effects of legal and ethical consideration
on suitable sector with importance of coordination and integration sort of operations of divisions
in hospitality sector.
TASK 1
Investigate the principles of managing and monitoring financial performance
The fundamental principle of maintaining and monitoring financial performance of
management are discussed below -
Preparation of key financial statements -
Financial report is the fundamental sort of reports for presenting managerial functions in
very effective way. The financial statements involve balance sheets and profit and loss account.
Balance sheet allow the management to admit about their fiscal health and it involves all sort of
assets and liabilities of the business (Borbon, and Ylagan, 2021). The profit and loss represents
the financial situations by presenting the revenue and expense incurred at the time of functions of
business. In respective management it follows specialised field in making the food and beverage
that have suitable purpose to deal by utilising respective techniques that they can acknowledge
about their financial stability.
Analysis of HR -
Human resource evaluate one of an essential asset for business that functions their
activities on a regular basis. If the turnover rate is higher than it is important for business to
finance more in hiring procedure to gain effective results.

Financial transactions of hospitality business
The management that opened the management in the London are specialise in offering
their products to corporate events, office meetings, wedding receptions, anniversaries, birthday
parties, funerals & wakes, TV and film shoots and much more. With the purpose to manage their
financial transactions of hospitality business by managing their balance sheet, income
statements, cash flow statements and shareholders’ equity as well (Čelić, Seočanac, and
Milašinović, 2021). It uses fundamental document that are utilised by management with checks,
invoice, receipts and as well as credit memos. In relation to Fresh ‘N’ Funky Catering, they use
double entry book keeping system that make sure the numerical suitability of books of accounts
in effective manner. The fundamental procedure record to follows the data that are journal
entries that is the fundamental method to record the transactions and receipt of provider invoices.
Apply the double entry book-keeping system of debits and credits to record sales and purchases
transactions in a general ledger
This section involves a similar, opposite account entry for each account section. Debit and credit
are two similar term with corresponding sides of both entry. The right is credit and left one is
debit. This system refers three rules like distinct body in that above followed business that have
an independent corporate structure. Other law is the valuation division as per to that Assets –
liabilities – resources. On the other hand, it also manages transactions that have double result on
double transaction.
In the books of Fresh ‘N’ Funky Catering
Journal Entries
Dat
e Particulars L.
F Debit Credit
1-
Apr
Fresh ‘N’ Funky Catering started business with cash
600,000, cash at Bank of UK 700,000, furniture 200,000.
Cash A/c Dr.
Bank of UK A/c Dr.
Furniture & fixtures A/c Dr.
To Michael's Capital A/c
600,0
00
700,0
00
1,500,0
00

200,0
00
1-
Apr
Purchased Plant & Machinery worth 250,000 by cheque.
Plant & Machinery Dr.
To Bank of America A/c
250,0
00 250,000
25-
Apr
Purchased goods from ABC Ltd worth 800,000 @10% trade
discount.
Purchases A/c Dr.
To ABC Ltd A/c
720,0
00 720,000
5-
Ma
y
Cash Sales 1,000,000 @5% trade discount to XYZ Traders
Cash A/c Dr.
To Sales A/c
950,0
00 950,000
15-
Ma
y
Deposited cash with Bank of UK 500,000.
Bank of UK A/c Dr.
To Cash A/c
500,0
00 500,000
5-
Jun Paid ABC Ltd 300,000 in cash.
ABC Ltd A/c Dr.
To Cash A/c
300,0
00 300,000
10-
Jun Received commission 75,000 by cheque.
Bank of UK A/c Dr.
To Commission received A/c
75,00
0 75,000
25-
Jun Cash Purchases 250,000.
Purchases A/c Dr. 250,0 250,000

To Cash A/c 00
5-
Jul
Sold goods to XYZ Traders 475,000.
XYZ Traders A/c Dr.
To Sales A/c
475,0
00 475,000
15-
Jul Received 275,000 by cheque from XYZ Traders.
Bank of UK A/c Dr.
To XYZ Traders A/c
275,0
00 275,000
5-
Au
g
Loan taken from Bank of UK 200,000
Bank of UK A/c Dr.
To Bank Loan A/c
200,0
00 200,000
25-
Au
g
Purchased goods from ABC Ltd 50,000.
Purchases A/c Dr.
To ABC Ltd A/c
50,00
0 50,000
27-
Au
g
Withdrew cash from bank 10,000.
Cash A/c Dr.
To Bank of UK A/c
10,00
0 10,000
5-
Sep Received commission 55,000 in cash.
Cash A/c Dr.
To Commission received A/c
55,00
0 55,000
10-
Sep Paid ABC Ltd 70,000 by cheque.
ABC Ltd A/c Dr. 70,00 70,000

To Bank of America A/c 0
20-
Sep Received 90,000 in cash from XYZ Traders.
Cash A/c Dr.
To XYZ Traders A/c
90,00
0 90,000
1-
Oct Bank loan repaid 50,000.
Bank Loan A/c Dr.
To Bank of UK A/c
50,00
0 50,000
25-
Oct Cash Purchases 25,000.
Purchases A/c Dr.
To Cash A/c
25,00
0 25,000
5-
No
v
Sold goods to XYZ Traders 47,000.
XYZ Traders A/c Dr.
To Sales A/c
47,00
0 47,000
15-
No
v
Withdrew cash from bank 15,000.
Cash A/c Dr.
To Bank of UK A/c
15,00
0 15,000
5-
De
c
Received interest from bank 5,000.
Bank of America A/c Dr.
To Interest received A/c
5,000
5,000
25-
De
c
Purchased goods from ABC Ltd 75,000.

Purchases A/c Dr.
To ABC Ltd A/c
75,00
0 75,000
5-
Jan Cash Sales 100,000.
Cash A/c Dr.
To Sales A/c
100,0
00 100,000
15-
Jan
Deposited cash with Bank of UK 35,000.
Bank of America A/c Dr.
To Cash A/c
35,00
0 35,000
25-
Feb Cash Purchases 450,000.
Purchases A/c Dr.
To Cash A/c
450,0
00 450,000
28-
Feb
Office was taken on rent in the month of Feb. Office rent
paid in cash 50,000.
Rent A/c Dr.
To Cash A/c
50,00
0 50,000
28-
Feb
Employees were hired in the month of Feb. Paid salary by
cheque 30,000 & cash 30,000 for the month of Feb 20x2.
Salary A/c Dr.
To Bank of America A/c
To Cash A/c
60,00
0 30,000
30,000
5-
Ma
r
Sold goods to XYZ Traders 675,000.
XYZ Traders A/c Dr.
To Sales A/c
675,0
00 675,000
31-
Ma
r Paid office rent by cheque 50,000.

Rent A/c Dr.
To Bank of America A/c
50,00
0 50,000
31-
Ma
r Paid salary in cash 30,000 for the month of March 20x2.
Salary A/c Dr.
To Cash A/c
30,00
0 30,000
Ledger accounts