Business Toolkit Report: Unit 4 - Hospitality Industry Analysis

This report provides a comprehensive analysis of the hospitality business toolkit, focusing on key areas such as financial performance, double-entry bookkeeping systems, and human resource lifecycle management. The report begins with an introduction to the hospitality sector, highlighting its various categories and economic significance. It then delves into the financial performance of East London catering, discussing principles like maintaining proper stock records, creating financial statements, and evaluating overhead costs. The report also explains the double-entry bookkeeping system, providing examples of debit and credit entries, and includes ledger accounts. Furthermore, it explores the HR lifecycle, detailing stages such as attraction, recruitment, onboarding, enablement, development, retention, and separation, with specific examples for an account assistant position. Finally, the report examines performance management plans, outlining stages like setting objectives, training, evaluation, comparison with benchmarks, and monitoring, to improve account assistant performance. The report concludes with a summary of key findings and references.

Unit 4 - Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 ................................................................................................................................................3
P2 ................................................................................................................................................4
P3 ................................................................................................................................................8
TASK 2 ...........................................................................................................................................9
P4 ................................................................................................................................................9
P5 ..............................................................................................................................................10
TASK 3 .........................................................................................................................................12
P6...............................................................................................................................................12
P7...............................................................................................................................................13
TASK 4 .........................................................................................................................................13
P8...............................................................................................................................................13
P9...............................................................................................................................................14
CONCLUSION .............................................................................................................................15
REFERENCE.................................................................................................................................16

INTRODUCTION
Hospitality sector is wider sector within service industry as it includes number of
categories like food services, theme parks transportation, lodging and event planning. This is one
of the leading sector which contributes large towards economy of country. As well incudes
various series to influence users and make them loyal towards brand (Kim and Im, 2018).
Following report is based on east London catering that organises events such as weeding,
birthday parties and family gatherings. Further, it covers discussion about double entry, book
keeping system of credits and debits to record transaction of sales and purchases in general
ledger. Lastly includes stages of HR life cycle with significant sustaining talents.
TASK 1
P1
Financial performance can be defined as a extent to which company can effectively
undertake assets in order to generate huge revenue. In context of this number of principles
available for monitoring the financial performance management. Financial accounts are created
for gaining advantages related to minimization of expenses. East London catering, records all
data of daily receipts and vouchers received while purchasing along with sales of raw material.
Some of the principles in context of chosen company are as follow:
Maintain proper record of stock:This comprises protecting and generating right records
related with the raw material with other significant purchases buy by company (Van der Wagen
and White, 2018). It provides knowledge to East London catering related to wastage of purchases
and stock of inventory.
Making key financial statements reports: It is based on development with overview of
companies current financial performance and comprises profit & loss along with balance sheet.
With the help of these reports, entities of company will able to increase productivity of the nest
year.
Evaluating overhead cost: main objective of this principle is to get insight into additional
expenses of company. East London catering calculate all cost which they can reduces in future
by decreasing operating cost and increasing profit margin with the assistance of their recorded
data of additional expenses.

P2
This tends to a system in which all account entry requires a matching, opposite account
entry. Two equal and corresponding sides of double entry are called debit and credit. In which
side side is debit and the right side is credit. In context of this there are three principles like
separation of entity. For chosen company, they has legal entity of independent from their owners.
Other principles is accounting equation which states Assets – Liabilities= Capital. Last one
states that each transaction has dual effects on dual transaction (Bilro, Loureiro and Guerreiro,
2019).

..Particulars...... Debit Credit
cash ...Account... Debit 28000
To capital 28000
Rent ...Account... Debit 2000
To Cash ...Account... 2000
Purchase ...Account... Debit 22000
To Cash ...Account... 12000
To Vendor ...Account... 10000
Prepaid Insurance Policy ...Account... Debit 1500
To Cash ...Account... 1500
Purchase ...Account... Debit 17000
To WH Adams Ltd ...Account... 17000
LaunDebity Fees ...Account... Debit 500
To Cash ...Account... 500
Telephone and Internet
Expenses ...Account... Debit 2500
To Cash ...Account... 2500
Water Charges ...Account... Debit 1000
To Cash ...Account... 1000
Wages and Salary ...Account... Debit 2550
To Cash ...Account... 2550
cash ...Account... Debit 15000
To Sales ...Account... 15000
cash ...Account... Debit 20000
To Sales ...Account... 20000
Ledger
Da
te ..Particulars......
J/
F
..Amo
unt.
Da
te ..Particulars...... J/F
..Amo
unt.
To
Capital ...Accou
nt... 28000 By Rent ...Account... 2000
To
Sales ...Accoun
t... 15000 By Purchase ...Account... 22000
To
Sales ...Accoun
t... 20000
By Prepaid Insurance
Policy ...Account...
By Laun Debity
Fees ...Account... 500
By Telephone and Internet

expenses ...Account...
By Water
Charges ...Account... 1000
By Wages and Salary ...Account...
By Balance c/d 30950
63000 63000
Capital ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Am
ount.
To Balance c/d 28000
By
Cash ...Acco
unt...
2800
0
28000
2800
0
Rent ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Am
ount.
To
Cash ...Account.
.. 2000
By Balance
c/d 2000
2000 2000
Purchase ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Am
ount.
To
Cash ...Account.
.. 12000
By Balance
c/d
3900
0
To
Vendors ...Acco
unt... 10000
To WH Adams
Ltd ...Account... 17000
39000
3900
0
Prepaid Insurance
Policy ...Account...

D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Am
ount.
To
Cash ...Account.
.. 1500
By Balance
c/d
15
00
1500
15
00
WH Adams
Ltd ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Am
ount.
To Balance c/d 17000
By
Purchase ...A
ccount...
1700
0
17000
1700
0
LaunDebity
Fees ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Am
ount.
To
Cash ...Account.
.. 500
By Balance
c/d 500
500 500
Telephone and Internet
Expenses ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Am
ount.
To
Cash ...Account.
.. 2500
By Balance
c/d 2500
2500 2500
Water
Charges ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Am
ount.
To 1000 By Balance 1000

Cash ...Account.
.. c/d
1000 1000
Wages and
Salary ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Am
ount.
To
Cash ...Account.
.. 2550
By Balance
c/d 2550
2550 2550
Sales ...Account...
D
at
e ..Particulars......
J/
F ..Amount.
D
at
e
..Particulars...
...
J/
F
..Am
ount.
To Balance c/d 35000
By
Cash ...Acco
unt...
1500
0
By
Cash ...Acco
unt...
2000
0
35000
3500
0
P3
All ledger account within business heading are mentioned in trial balance. Along with the
name and values of each nominal is included in this list. Each nominal account consist debit and
credit balance. It is important to do right trial balance and not to document the operations. In this
both the side need to be equal for the correct trial balance (Melissen and Sauer, 2018). Reporting
process is correct and all registered procedure of company are carried out with counter
examination.
..Particulars...... Debit Cr
Cash ...Account... 30950
Capital ...Account... 28000
Rent ...Account... 2000
Purchase ...Account... 39000
Prepaid insurance Policy 1500

WH Adams
Ltd ...Account... 17000
LaunDebity
fees ...Account... 500
Telephone and Internet
expenses ...Account... 2500
Water
Charges ...Account... 1000
Wages and
salary ...Account... 2550
Sales ...Account... 35000
Total 80000 80000
TASK 2
P4
Within a company, human resources are the pillars of company and their main roles is to
increase productivity with effective utilisation of all other resources. In order to avoid future
uncertainties and for long time sustainability, it is vital to effectively manage all operation of
company. For which they opt certain stages of HR cycle as it permits efficient development
when new candidate is chartered & get into in business. With relevance a position of account
assistant to chosen company, different stages of HR cycle are as follow;
Attraction: The appeal got complete before company even searches for new candidates. It
includes brand and shape overall perception of prominent workers within company. This is
related with the grabbing and influencing individual who have specific knowledge and
experiences (Mejia and Torres, 2018). In context of chosen company, it provides the requirement
of account assistant with fair rights and jib benefits. This grabs attention & get them into
company.
Recruitment: this is viral within company and it is the duty of HR manger to hire some
skilled and appropriate candidate for the successful completion of HR lifecycyle. For this they
need to develop strategies and made some policies for filling the vacant position of company.
East London catering, will recruit candidates of required position, Account assistance.
On boarding: This process help company to get new candidates in company. By learning
roles, building relationship with employees & supervisors for creating position, employees
would be able to become the part of workplace. This stage of HR life cycle combines for creating

appropriate skills, knowledge and competencies. Significant company gives training to
applicants about accounting terminology & skills required for recording the entries.
Enablement: This stage includes orienting of new candidates & familiar them with
culture, mission, values of company. Orientation will carried out in number of ways such as
conferences, in which candidates will get information by presentation & question along with
reply session. It help them by explaining their position, roles, obligation etc.
Development: To achieve long term goal or objective, workforces and HR entities
perform task together. HR manger may use personality profile assessment to assist employees to
determine best career options. It is vital to promote growth as well as to opt new technologies,
the condition of training program for new candidates of account assistance. It enable respective
to enhance knowledge based on east London catering requirements.
Retention: HR lifecycle assist entities of company for reducing the rate of turnover with
the help of various practices such as motivation, performance appraisal, training and
development sessions as well as by providing special benefits like flexible working
environments, bonus etc. this is important stage as employee replacement costs are far high
compare to employee development (Fettermann, Echeveste and Tortorella, 2017).
Separation: This is considered as the last step human resources and includes employees
retirement. In this situation, chosen company ensure that account assistant retire from this
company successfully.
P5
Performance management make sure that all activities and function of company are going
smoothly in order to attain goal or objective of company. It mainly concentrate the performance
of employees and overall performance of company for managing all projects. It requires effective
coordination among all members of company as well as in all departments. So that all predefined
goal and task will be achieved within small times frame. In context of east London catering,
entities of performance management is accountable for managing negative behaviours so that
productivity will get improved. Different stages of performance management plan is mentioned
below:
Stipulation of performance objective- this is considered as important step to recognize
gap between existing and desired performance of selected company.

Training- nest step is to identify the requirement of training and development areas. It is
vital for firm to offer training session to workers so that they will able to work effectively and
efficiently. As well as this improves their knowledge and skill for performing better and
motivates them to attain set objectives.
Evaluation of employee performance- After training it is considered as the next step of
performance management and includes assessment of employee performance. With relevance to
this, chosen company assess the efficiency of account assistant.
Comparison of current performance with benchmarks- At this stage, recognizes of entity
related with improvement is carried out in which gap is identified among current as well as
desired performance.
Monitoring and controlling- This is the final stage of performance improvement in order
to fill the gap of actual and desired performance (Murillo and King, 2019). With relevance to
chosen company, with the help of this they plan to improve performance of account assistance
effectively.
Performance management plan for newly appointed account assistant-
Problem
recognisance
Employee
engagement
Set clear
objective
Training
programmed
Performance
review
Face problem
while dealing
with data.
It requires
effective and
appropriate
training along
with instruction to
account assistant.
Enhancement in
skill related with
data handling.
With the help of
supervisor or
seniors of similar
field, predefined
objective can be
fulfilled as well
as by taking
proper advices of
financial detailed
worker of
company will
able to attain this
goal.
After 6 month the
performance
review will take
place.

Face problem in
accounts while
recording the
entries.
This gap can be
eliminate by
providing further
training and
education to the
needed
employees.
To build general
knowledge of
accounting.
An individual
need to be
training during
joining and they
should receive
some accounting
handbooks &
presentations.
Performance
reviewed would
be performed hen
a period of 3
months get
complete.
TASK 3
P6
In order to survive in the industry for lengthy duration and conduct their operations in
legal boundaries, every organisation is required to follow regulations provided in legislature
enforced by various government authorities. East London catering has determined various
legislatures which are required to be followed and help the company survive in the hospitality
sector for lengthy duration. Several of such regulations which the respective organisation needs
to obey are mentioned below: Licensing Act, 1964: Liquor license is given by the British government to
organisations which allows them to provide drinks containing alcohol freely. The
respective organisation is required to have a public room for serving drinks containing
alcohol. The respective establishment needs to obtain restaurant license during serving
drinks which contain alcohol. Health and Safety Act, 1974: This piece of legislation is related to maintaining
physical and mental well-being of every employee at the workplace. Implementing
policies which assure overall well-being of their staff is crucial for the respective
enterprise as it not only creates positive working environment but also increases
employee satisfaction which assists the company in maintaining success for long
duration.