Hospitality Business Toolkit: Financial Performance and HR Management

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The Hospitality Business Toolkit
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Table of Contents
INTRODUCTION........................................................................................................................3
LO1........................................................................................................................................... 4
P1 PRINCIPLES OF MANAGING AND MONITORING FINANCIAL PERFORMANCE..................4
P2 APPLICATION OF DOUBLE ENTRY SYSTEM OF BOOKKEEPING.........................................6
P3 PRODUCING TRIAL BALANCE.........................................................................................11
LO2......................................................................................................................................... 12
P4 DIFFERENT STAGES OF HR LIFE CYCLE AND IMPORTANCE FOR RETAINING AND
DEVELOPING TALENT......................................................................................................... 12
P5 PERFORMANCE MANAGEMENT PLAN BY APPLYING TECHNIQUES TO RESOLVE
NEGATIVE BEHAVIOUR AND OVERCOME ISSUES OF THE EMPLOYEE RETENTION.............14
LO3......................................................................................................................................... 16
P6 LEGISLATIONS THAT A HOSPITALITY ORGANISATION NEEDS TO ADHERE TO...............16
P7 IMPACT OF CONTRACT LAW AND COMPANY EMPLOYMENT LAW ON BUSINESS
DECISION MAKING............................................................................................................. 16
LO4......................................................................................................................................... 18
P8 DIFFERENT FUNCTIONAL ROLES INTERRELATIONSHIP WITHIN HOSPITALITY SECTOR. .18
P9 DIFFERENT METHODS OF COMMUNICATION, COORDINATION AND MONITORING TO
STRENGTHEN VALUE CHAIN...............................................................................................19
CONCLUSION.......................................................................................................................... 20
REFERENCES........................................................................................................................... 21
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INTRODUCTION
In the hospitality industry, there are various field and concepts that one must be well versed
with. This assignment will lay emphasis on investigating the finance department and its
importance in the hospitality business. For the same, this report will lay emphasis on
investigating the managing of the financial transaction and its recording effectively so as to
mitigate the cost and will also assess the effective management of the Human resources life
cycle so as to align with the HR strategy. In this section, a performance management plan
will also be laid so as to resolve the negative behaviour in the organisation. In the next part,
the impact of the application of the legal and ethical considerations in a hospitality business
will be illustrated and its impact on the business decision making will be understood by
taking a few examples. In the last part, the focus will be laid on the significance of the
coordination and integrating the functional roles so as to strengthen the value chain by
discussing various methods of monitoring, coordination and communication.
Merlin Entertainments Plc is considered to be a British based company that is
headquartered in England. It has nearly operations in 127 attractions, 7-holiday villages in
27 countries and has 19 hotels under it. This hospitality business will be undertaken in the
following assignment.
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LO1
As an Account Assistant in the accounting department of Merlin Entertainments Plc, an
investigation will be carried out to record the financial transaction and the trial balance
using the double entry methods in the hospitality business.
P1 PRINCIPLES OF MANAGING AND MONITORING FINANCIAL
PERFORMANCE
The hospitality industry has certain characteristics which include the intangible, perishable,
variable, shift work, graveyard shift, guest satisfaction and perishable and so on. These all
characteristics combinable form the characteristics of the hospitality business (Deegan,
2013).
There are different types of business transactions occurring in a hospitality business like that
of the Merlin Entertainments Plc. Such transactions involve the sales, receipts and payments
and the purchases and so on. These transactions need to be managed and monitored
effectively so as to adhere to the principles of financial accounting (Hislop et al., 2018).
Merlin Entertainments Plc usually managed their financial performance and monitors it by
effectively following the following principles:
Preparing the financial statements
By preparing the key financial statements of Merlin Entertainments the identification of the
performance of key financial areas will be better rendered that will help in providing a brief
overview of the financial health of the business (Deegan, 2013).
Trial balance preparation
Another principle of monitoring and managing financial statements is to prepare trial
balance so as to match the effective recording of the transactions. Merlin prepares a trial
balance so as to list the closing balance of all ledger accounts and track the debtors and
creditors effectively (Gitman et al., 2015).
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Recording inventories
Another principle is to keep an effective record of the inventories which are purchased or
used so as to track the inventories and support the budget formulation (Gitman et al.,
2015).
Calculating working capital and financial ratios
Next is to calculate the working capital statements and the financial ratios which help in
giving quick access to the position of the firm and also helps Merlin in identifying the
working capital requirements (Deegan, 2013).
Preparing the cash and fund flow statements
Merlin entertainments also prepare the cash flow statement and fund flow so as to keep a
track of the sources and the application of the funds and keep a record of overheads and
revenues so as to gain competitive advantage (Gitman et al., 2015).
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P2 APPLICATION OF DOUBLE ENTRY SYSTEM OF BOOKKEEPING
For Merlin Entertainments the debits and credits will be identified and recorded in the
purchase and sales transactions to form general ledger (Weygandt et al., 2015). This will
help in the application of double entry bookkeeping. This will be applied by recording the
following transactions:
May 10 Started a business with $60,000
May 11 Furniture for hotel bought for 10,000
May 12 Goods purchased for cash $15,000 from furniture Mart
May 13 Goods purchased from Alton Towers for $30,000
May 14 Bank account opened by depositing $16,000
May 16 Goods sold for cash $15,000
May 17 Stationery purchased for $1000 from stationery Mart
May 18 Goods sold to Zain of $10,000
May 19 Machinery purchased for $6,000 and paid through Cheque
May 20 Goods returned by Zain of $2000
May 21 Payment made to Alton Towers by cheque $5000
May 22 Manager withdrew from a bank for personal use $3000
May 23 Interest paid through cheque $2000
May 24 Drawn from a bank for the expenses of hotel $10,000
May 26 Received cheque from Zain $5000
May 27 Electricity bill paid $100
May 29 Cash sales made of $6000
May 30 Received commission by cheque of $5000
General Ledger will be prepared of the above transaction taking place which will be
prepared as under:
Capital A/c
Dr. Cr.
Date Particulars J/F $ Date Particulars J/F $
30-May balance 60000 10-May cash 60000
total 60000 total 60000
1-Jun balance 60000
Furniture A/c
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Dr. Cr.
Date Particulars J/F $ Date Particulars J/F $
11-May furniture mart 10000 10-May balance 10000
total 10000 total 10000
1-Jun balance 10000
Purchases A/c
Dr. Cr.
Date Particulars J/F $ Date Particulars J/F $
12-May cash 15000 30-May balance 45000
alton towers 30000 total 45000
1-Jun balance 45000
Alton Towers A/c
Dr. Cr.
Date Particulars J/F $ Date Particulars J/F $
30-May balance 30000 13-May purchases 30000
total 30000 total 30000
1-Jun balance 30000
Station
ery A/c
Dr. Cr.
Date Particulars J/F $ Date Particulars J/F $
17-May
stationery
mart 1000 30-May balance 1000
total 1000 total 1000
Zain
A/c
Dr. Cr.
Date Particulars J/F $ Date Particulars J/F $
18-May sales 10000 20-May Sales return 2000
26-May bank 5000
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30-May balance 3000
total 10000 total
1000
0
balance 3000
Sales return A/c
Dr. Cr.
Date Particulars J/F $ Date Particulars J/F $
20-May zain 2000
30-
May balance 2000
total 2000 total 2000
1-Jun balance 2000
Interest A/c
Dr. Cr.
Date Particulars J/F $ Date Particulars J/F $
23-May bank 2000
30-
May balance 2000
total 2000 total 2000
1-Jun balance 2000
Hotel Expenses A/c
Dr. Cr.
Date Particulars J/F $ Date Particulars J/F $
24-May bank
1000
0
30-
May balance
1000
0
total
1000
0 total
1000
0
1-Jun balance
1000
0
Cash A/c
Dr. Cr.
Date Particulars J/F $ Date Particulars J/F $
10-May capital 60000 12-May purchases 15000
29-May sales 6000 14-May bank 16000
27-May electricity bill 100
30-May balance 34900
66000 66000
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Furniture Mart A/c
Dr. Cr.
Date Particulars J/F $ Date Particulars J/F $
30-May balance 10000 11-May furniture 10000
total 10000 total 10000
1-Jun balance 10000
Bank A/c
Dr. Cr.
Date Particulars J/F $ Date Particulars J/F $
14-May cash 16000 19-May machinery 6000
16-May sales 15000 21-May alton towers 5000
26-May zain 5000 22-May drawings 3000
30-May commission 5000 23-May interest 2000
total 41000 24-May hotel expenses 10000
30-May balance 41000
Sales A/c
Dr. Cr.
Date Particulars J/F $ Date Particulars J/F $
30-May balance 31000 16-May bank 15000
18-May zain 10000
29-May cash 6000
total 31000 total 31000
1-Jun balance 31000
Station
ery
Mart
A/c
Dr. Cr.
Date Particulars
J/
F $ Date Particulars J/F $
30-May balance 1000 17-May stationery
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Machiner
y A/c
Dr. Cr.
Date Particulars
J/
F $ Date Particulars J/F $
19 may Bank 6000 30 May Balance 6000
Total 6000 Total 6000
1 June Balance 6000
Drawings
A/c
Dr. Cr.
Date Particulars
J/
F $ Date Particulars J/F $
22 may Bank 3000 30 May Balance 3000
Total 3000 Total 3000
June 1 Balance 3000
Electricity
Bill A/c
Dr. Cr.
Date Particulars
J/
F $ Date Particulars J/F $
27-May cash 100 30-May balance 100
total 100 total 100
1-Jun balance 100
Commissi
on
Received
A/c
Dr. Cr.
Date Particulars
J/
F $ Date Particulars J/F $
30-May balance 5000 30-May bank 5000
total 5000 total 5000
1-Jun balance 5000
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