Hospitality Business Toolkit: Financial and HR Management Analysis

This report provides a comprehensive overview of hospitality business operations, focusing on East London Catering. It begins with an introduction to the hospitality industry and its key services. Task A delves into the principles of managing and monitoring financial performance, including the preparation of financial statements, inventory management, and cash flow statements. It also explains double-entry bookkeeping, providing journal entries, ledger accounts, and a trial balance. Task B explores the HR life cycle, specifically focusing on the attraction, recruitment, selection, induction, orientation, career planning, retention, and termination phases. It applies these stages to a manager job role and discusses strategies for retaining talent. Additionally, the report presents a performance management plan, incorporating planning, monitoring, and review stages to address negative behavior and improve retention. The report also outlines relevant legislation for the hospitality organization, including the Health and Safety Act 1974, Food Act 1990, and Employment Act 1996. The report concludes with a summary of the key findings and includes a list of references.

Hospitality Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK A ..........................................................................................................................................3
TASK B...........................................................................................................................................9
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Hospitality business is known to be one of the big industry which provides various
services, such as – lodging, food, accommodation, food and beverages (Goryushkina, and et.al,
2019). This industry majorly rely on the providing services to the customers. In this report,
East London catering is the diversified hospitality company which is serving worldwide. In this
report various, principles of managing and monitoring financial performance is being defined
apart from this, double entry and book keeping system of debit and credit which shows the sales
and purchase of the organization is being elaborated in this report. Except this, basic trail
balance and ledger is being discussed in this report. Different stages of HR life cycle is being
mentioned in this report. Apart from this, performance management plan for then organization is
mentioned in this report. Specific legislation of East London catering organization has been
elaborated in this report. Apart from this, functional role of the hospitality sector interrelate
mentioned in this report. Different method of communication, monitoring is being mentioned in
this report.
TASK A
P1 Principle of managing and monitoring financial performance
Monitoring of financial performance is very essential for any business, to monitor the
financial performance, the management of organization must prepare the financial statement.
Financial statement includes profit and loss account and balance sheet of the organization which
will provide a vital indicator to the management that whether the organization is earning profit or
not (Konovalova and et.al, 2018). Apart from this, top manage the financial performance of the
organization, the management have to make the record of the inventories . The records of
inventories must be recorded accurately so that management know how many raw- material are
coming in the organization and how many are getting used by the organization. Apart from
this,management or the finance department of the organization must prepare the cash flow
statement the main objective of cash flow statement is to know the total cash inflows and
outflows in the organization so that the management can overcome the expenses. As the major
expenses of organization take place in the form of marketing expenses, to attract the new
customer, this organization expense a lot in the marketing, thus the budget of the organization
can vary, apart from this the organization has to make different budget for the HR, because HR
department also spent ample of money of on the training and development of the employees to

manage the and monitor then financial budget the management has to consider the HR
department as well.
P2 double entry book keeping of debit and credit for recording sales and purchase transactions.
Double entry book keeping is used to record daily transactions.
This task will carry journal entry, ledger accounts and final trial balance
Journal entry:
Journal entry means recording the business transactions in the books of accounts of the business.
It consists of date, transaction description, debit and credit (Kurbonova, 2021)
Journal entry:
S No. particulars Debit ( £) Credit ( £)
1 Cash a/c dr
to capital a/c
(being cash is invested
by owner)
30000
30000
2 Rent a/c dr
to cash a/c
(being rent is paid)
1000
1000
3 Washers and dryers a/c
dr
to cash a/c
to creditor a/c
(being purchase is done)
25000
10000
15000
4 Insurance policy a/c dr
to cash a/c
(being insurance policy
paid)
1200
1200
5 Good supplies a/c dr
beverage a/c dr
8000
7000

to WH Adams ltd
(being goods are
purchased in credit)
15000
6 Laundary fees a/c dr
to cash a/c
(being laundary fees are
paid)
200
200
7 Telephone and internet
a/c dr
to cash a/c
(being telephone and
internet charges are paid)
2220
2220
8 Rates, water charges and
refuse a/c dr
to cash a/c
(being charges are paid)
950
950
9 Wages and salaries a/c dr
to cash a/c
(being wages and salaries
are paid)
1740
1740
10 Cash a/c dr
to sales a/c
(being food is sold)
20000
20000
11 Cash a/c dr
to sales a/c
(being beverage was
sold)
13000
13000

Ledger account:
Ledger account contain business transaction record it is the separate account for every item of
the transaction.
Ledger account:
Cash account
S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
1 To capital 30000 1 By rent 1000
2 To sales 20000 2 By washer and
dryers
25000
3 To sales 13000 3 By insurance
policy
1200
4 By laundry
fees
200
5 By telephone
and internet
2220
6 By Rates,
water charges
and refuse
950
7 By Wages and
salaries
1740
By bal c/d 45690
total 63000 total 63000
Capital a/c
S no particulars Amount ( £) S no particulars Amount ( £)

Dr Cr
1 By cash a/c 30000
By bal c/d 30000
total 30000 total 30000
Rent account
S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
To cash 1000
By bal c/d 1000
total 1000 total 1000
Washers and dryers account
S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
To cash 10000
To lily
creditor
15000
By bal c/d 25000
total 25000 total 25000
Insurance policy account
S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr

To cash 1200
By bal c/d 1200
total 1200 total 1200
Good supplies account
(it is not mentioned in question that what type of goods it is)
S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
To WH
Adams ltd
15000
By bal c/d 15000
total 15000 total 15000
Beverage account
S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
To WH
Adams ltd
15000
By bal c/d 15000
total 15000 total 15000
WH Adams ltd
S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr

By Good
supplies
8000
By beverage 7000
By bal c/d 15000
total 15000 total 15000
Laundry fees account
S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
To cash 200
By bal c/d 200
total 200 total 200
Telephone and internet account
S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
To cash 2220
By bal c/d 2220
total 2220 total 2220
Rates, water charges and refuse account
S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr

To cash 950
By bal c/d 950
total 950 total 950
Wages and salaries account
S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
To cash 1740
By bal c/d 1740
total 1740 total 1740
Sales account
S no particulars Amount ( £)
Dr
S no particulars Amount ( £)
Cr
By cash 20000
By cash 13000
To bal c/d 33000
total 33000 total 33000
Trial balance
s. no Heads of accounts Ref. debit credit
Cash account 45690
Capital a/c 30000
Rent account 1000

Washers and
dryers account
15000
Insurance policy
account
1200
Good supplies
account
15000
Beverage account 7000
WH Adams ltd 30000
Laundry fees
account
200
Telephone and
internet account
2220
Rates, water
charges and
refuse account
950
Wages and
salaries account
1740
Sales account 33000
total 93000 93000
TASK B
P4 stages of HR life cycle applied to hospitality job role and their role in retaining talent
HR life cycle:
Hr life cycle is the process of HR activities. It includes HR strategy which further involve
recruitment, training and development and all the activities until employee leaves the job.
HR life cycle have 5 stages which are as follows and the hospitality job role which will be
choosing is manager.
Attraction, recruitment and selection:

Attraction start when company require workforce to fill the vacant position. Company attract
candidate through carrying out advertisement which is attractive so that it can attract more
candidates (Harrington and et.al., 2021). For manager job vacancy East London catering will use
social media for giving job vacancy advertisement. After receiving application from applicant,
company will recruit employees through interview test and after that best candidate will be
selected.
Induction and orientation:
It means that company welcome manager at this stage by taking his or her introduction and also
giving knowledge about organization culture and his or her job role.
Career planning:
After manager is settled in the company, HR will help him to grow. Hr will do performance
management and reward the manager for good performance. This will improve talent and
increase productivity.
Retention:
Retaining workforce is one of the important HR activity. As loosing top performer employees
will be the loss for the organization. Hr of East London catering organization make sure that they
provide good working environment to their employees and also providing other benefits apart
from salary. That motivate the staff, so they will not leave the company.
Termination phase:
This phase means when employees leave the company. When employee leaves, company should
maintain good relations with them so that they can return to company if they want or recommend
good candidate for company.
P5 performance management plan for hospitality job role by applying methods to solve negative
behaviour and overcome problems of retention (Starks and Carroll, 2018).
Performance management plan:
Performance management plan is the performance action plan, it helps to know the
employees issues related in the performance and how they can overcome these issues. It also
helps to control failure so that goals can be achieved. It can be done by using three stages which
are as follows and the job role will be manager.
Plan: