Hospitality Business Toolkit Report: Finance, HR, and Legal Aspects

This report, focusing on the Hospitality Business Toolkit, delves into crucial aspects of managing a hospitality business, using The Ritz London as a case study. It begins by evaluating financial management, emphasizing the importance of financial transactions, principles of monitoring financial performance, and bookkeeping systems. The report includes practical elements like trial balance preparation and the significance of accurate transaction recordings. The second section examines the HR lifecycle within hospitality, including recruitment, training, and employee relations. The final section analyzes the impact of legal and ethical considerations on hospitality businesses. The report highlights how these elements contribute to a successful and well-managed hospitality operation, emphasizing the importance of financial management, human resources, and adherence to legal and ethical standards.

THE HOSPITALITY
BUSINESS
TOOLKIT

Table of Contents
INTRODUCTION...........................................................................................................................3
L01...................................................................................................................................................3
Evaluate how to manage finance and record transaction in business....................................3
L02...................................................................................................................................................7
Briefly explain the HR life cycle in relevance with hospitality.............................................7
LO3..................................................................................................................................................8
Analyse the impact of legal and ethical considerations on a hospitality business.................8

INTRODUCTION
Business is wider and broader and is ongoing process which deals with ample number of
functions and operations. In service industry it is important to analyse methods and tools. A
business toolkit incudes number of strategies techniques which are used in business in effective
manner. The Ritz, headquartered in London, UK. The hotel is rising and expanding its business
at both national as well as international level. Providing satisfaction to the customers is their
main motive. They use business toolkit in proper manner so that firm run its activities in smooth
and proper manner. Also, they use effective strategies and tactics so that positive outcomes are
obtained at proper manner. Every firm perform different functions as well as operations and
operate their activities in a proper manner. In hotel industry, it is important to be dynamic and
flexible in nature. Hospitality refers to relationship between customers and host. In hospitality,
firm operates with proper decision making so that goals and objectives are achieved in proper
manner. Hospitality in The Ritz is used as first priority of business. This report comprises of
managing finance and record transactions, developing and managing human resource life cycle,
involvement and impact of legal needs and government in relevance with hospitality and
analysing various coordinating and integrating functions of department within the hospitality
sector.
L01
Evaluate how to manage finance and record transaction in business
Importance of financial transaction in hospitality industry-
Financial transactions- In hospitality, financial transaction play important role in
business. Financial transaction refers to exchanging of asset for payment. In business it is
important to record of every transaction which are occurring the firm. In service industry,
financial transaction are the proof that business activities has been used for some purpose or
objective. (Pieroni, 2019).There are various types of financial transactions in business such as
purchase, sales, receipt etc. The Ritz London uses financial transaction so that business activities
are carried out in proper manner. All the transactions in hotel are recorded with proper manner.
Principles of monitoring financial performance of business-

In firm, it is important to follow principles and procedures in an effective manner.
Principles are essential in organisation as they guides what is right and wrong in business. HR
manager of company ensures that all, the rules and regulations are followed in proper manner
and is everyone in firm works with ethics and values. In context to The Ritz Hotel, they follows
principles in the firm in systematic manner. In business, they are used to maintain discipline in
the organisation and objective are achieved in effective manner. There are various types of
principles which are maintained by firm and are discussed below-
 Principle of time management- In firm, it is important to maintain time management in
the business. (Shichkov, 2019). Focusing on time management helps both employees as
well as management to achieve the target in a time period. With use of proper time
management, errors and conflicts are reduced. In relation with The Ritz, their
management is well organised and perform their their task with given period of time.
This makes their USP in the market and increases goodwill of the firm. Thus, following
principle of time management leads to overall growth and development of business.
 Maintaining inventory records- In an organisation, maintaining record of inventory is
crucial at every phase of business. This principle states that inventory of business such as
purchasing of equipments, tools, raw materials etc. are to be recorded by every firm and
should be evaluated in proper manner. Inventory records are essential in business as they
helps in analysing the finance structure of the firm. In relation with The Ritz Hotel, their
accounting and finance team keeps record of every process which occur in business.
Thus, this principle helps the organisation to analyse weather the resources are being
utilised in proper way or not. (Mehra, 2017).
 Staff and food cost principle- Further comes the staff and food cost principle which play
important role in business. Financial performance of firm is fluctuating in nature and
there should be proper control and eye on financial status of the firm. Staffing and food
cost are essentials and affect the performance of business at wider level. Thus, it is
important for firm to keep price and cost of staffing as well as food at affordable rate. In
context to The Ritz Hotel, they keep their staff, food and labour cost at average rate so
that their sales revenue does not get affected by these costs.
After analysis of above principles it is stated that it is important to maintain and follow
the principle so that management and employees work in proper manner. Principles are the

guidelines which guides the firm how to operate in market and how to manages the functions and
operation activities. Principles are heterogeneous in nature and are adopted by firm according to
their policies as well as procedures (Okubo,2019).
Describe principles of book keeping system in relevance with organisation
In accounting, transaction are recorded at different levels, methods and by use of various
accounts. Book-keeping refers to maintaining and recording day day to financial transactions and
activities of business in a proper manner. In book keeping, there various types of accounts which
are present such as account payable, account receivable, payroll expenses etc. All the accounts
are maintained and managed by book keeping. Firm uses book keeping so that data and
information related to transactions are saved and are not misused by third party. There various
various principles which should be considered by The Ritz Hotel and are mentioned below-
 Recording expenses- Expense in business occurs on daily basis and it is important for
firm to record expenses at every phase of business. This principles states that all the
expenses related to business are to be recorded in proper manner and systematically. B[y
following this principle firm is able to maintain and control the odd expenses of business.
In relation with The Ritz hotel, they record every transaction related to expenses in
proper manner (Faccia, 2019).
 Revenue principle- Further comes the revenue principles of book keeping which states
that every profit or revenue which occurs in business is to be recorded in the firm. With
helps of this principle it become easy for enterprise to analyse as well as evaluate that all
the profit and revenue in organisation should be shared as well as distributed within the
firm. In context to The Ritz hotel, they keep records of every transactions with assists of
their finance expert and team. This principle also helps preparing ledger and trial balance.
 Principle of objectivity- Another principle of book keeping is objectivity which states
that only that data and information in the accounts and business is used which is verified.
In accounting, only verified data are crucial, whereas subjective and qualitative
information are rarely used by the firm. Verified data ensures that information and output
is reliable. In relation with The Ritz Hotel, they uses objectivity principle with help of
their market research team. They use this principle to ensure that all the information
customers, staff, and employees are authentic and reliable.

After examining the above principles it is stated book keeping is broader concept and includes
assumptions as well principles and it is important to maintain those principles in the firm. With
help of book keeping organisation are able to perform their functions and operations at
appropriate manner.(Faccia, 2019).
Prepare a trial balance and its purpose within the organisation
In term of accounting, trial balance is presentation of ledger accounts in systematic order.
Ledger as well as trial balance both are co-related with each other. Firm use trial balance so that
all the accounts and transaction related with those accounts are displayed and placed in proper
manner. Trial balance helps the firm to settle their accounts and information in effective manner.
In context to The Ritz Hotel, they use trial balance periodically and yearly so that business run in
a smooth manner. Thus, it is crucial to prepare a trial balance in the organisation.
Trial balance gives a clear picture of business and its financial capability. Also it depicts
the proper evaluation of all accounts. With help of ledger, trial balance is prepared and all
accounts are settled in with valid information and data. (Gray, 2019).
Purpose of trial balance
 To ensure the balance in the firm so that effective results are achieved.
 To implement more accounting statements within the organisation.
 Another purpose of trial balance is to successfully run the business activities in a proper
manner.

 To provide reliable information to the firm without any errors.
Briefly explain the importance of accurate recordings of transactions with accepted principles
In firm, transactions occur on daily basis in the business and it important for every
organisation to maintain and keep the transactions safe and secure or should be recorded online
and offline at both level. Accurate recording of transactions is essential because recording the
transactions will help both employee as well as firm to use the previous data whenever needed.
In context to The Ritz Hotel, they keep record of every transaction which is related to business
activities. Following this step assists them in to be aware of taxes, fraud or theft of money by
third party. Also, use of third party is prohibited when accurate record of transaction is done.
Auditing and finance team of the hotel maintain and ensures that every transaction is recorded
and evaluated in a proper manner. Thus, accurate recording of transaction assists firm to analyse
creditability of the firm.(Kieso, 2019).
After a examining above analysis it can be concluded that in hospitality business toolkit
play important role and should be used in proper way. Financial management and performance
level of financial management are essential to be considered by the firm so that functions and
operations are performed in effective manner. Thus, it is important to manage as well as monitor
the financial performance level of business for continuous growth.Various types of principles are
also necessary in accounting such as principle of revenue, expenses, objectivity etc. It is
important for firm to follow these principles to maintain uniformity in the organisation. Book
keeping and trial balance are key elements of accounting in finance. Book keeping ensures that
all the transactions are maintained and recorded in proper way. Whereas trial balance keeps the
ledger accounts in systematic order and ensure that result or balance is equal by both side debit
and credit. Hence, following and properly using financial management stimulates business
growth and overall development (Lev,2019).
L02
Briefly explain the HR life cycle in relevance with hospitality
In an organisation, it is important for firm to focus on HR life cycle and their roles and
responsibilities within the firm. An HR in firm is responsible for overall growth and
development of the business. In service industry, multitasking functions and roles are perform by

HR in the organisation. In context to The Ritz hotel, HR manager perform various role which are
mentioned below-
 Recruitment and selection- Recruitment means identifying the right candidate for the
organisation. HR manager of the firm use various source of tools and platforms to find
and identify right applicants or candidate who are fit for the job or vacant post. There
various sources external as well as internal approaches such as job portals like LinkedIn,
Skype and outsource parties or third parties who act as placement services for the
organisation (Karamoy, 2020).In context to The Ritz, their HR use all these sources
through which potential applicants are tracked in proper manner. Selection means
choosing the applicant from alternatives. Selection is negative part of Human resource
management and affect the firm productivity.
 Training and developing: Training and developing is that part of human resource cycling
which help the firm in increasing the performance of their employees in organisation.
Here HR manager is liable to watch the employee that they are doing right methods of
training and development.
LO3
Analyse the impact of legal and ethical considerations on a hospitality business
Rules and regulations are important to follow and adopt by every firm. Legislations play
important role in service industry and hospitality business. Legislations are the laws which are
governed by government. Legislation depicts the necessary information and rights amongst the
society. In other words, it can be said that they have been implemented by government to
safeguard the interest of people in the society (Rahman, 2018). In context to The Ritz Hotel, they
works under government rules and regulations which makes them strong competitors from their
rivals. There are various legislations and laws which affect the firm business which are
mentioned below-
 Health and safety act- This act states that people heath is important and is to secured in
a proper manner. In a firm or say service industry there are terms and conditions about
staff health and safety and which are followed and accepted by everyone in the
organisation. In relation with The Ritz Hotel, they have gave free health facility to

employees and staff who are working in the firm more than six months. Thus, it is
important for enterprises to adopt this act in their policies and procedures.
 Food Act(1990)- Another legal consideration which affect the business is food act. In
this act, service industry or hotel industry who are providing food and beverages to public
should use natural substance or healthy ingredients to the customers and society. In
context to The Ritz Hotel, they use fresh ingredients in their dishes and food and ensures
that customers get quality of services (Jamshi, 2017). Employment act- Another legislation is employment act 2002. This act includes updated
rules and regulation in which policies related with employees are stated such as pay and
leaves, bonus, ESIC etc. The Ritz Hotel, ensures about employment act with help of HR
manager and team. Considering this act helps the employees as well as firm to achieve
the desired goals.
Impact of company and contract law on decision making of business
Decision making is important in business to achieve the desired goals and objectives.
There are various factors which affect the decision making of business which are mentioned
below-
 Company law- Company law also known as corporate law which states that all the rules
and regulation in context to employees, companies, or people are involved in this law. In
company law, information related to business practices is also included and which are
adopted by firm in appropriate manner. In context to The Ritz Hotel, they follow
company law with proper analysing and evaluating its impact on firms decision making.
(Akinbola,2018). Contract Law- This law states that when two or more that two parties or companies
come together for a common purpose than contract law is enforced. In this law, certain
guidelines as well as conditions are present which are properly followed by the firm who
are adopting contract law. In relation with The Ritz Hotel, they always maintain positive
relationship between clients and customers and contract law is used without any conflicts.
Analyse regulation on standards and its implications
Regulation and standards are connected with each other. It depends upon the firm
decision making to use standards or regulations. Regulations means monitoring and controlling
of activities whereas standard means activities which are ruled and governed by law. It is

important for firm to maintain regulation on standard so that continuity of business occurs in
proper way.
Impact of regulation on standards-
 Regulations affect the standards as there are different types of regulations and standard
and in the society and firm mostly uses regulations in the business as key word. Regulations mostly deals with government issue whereas standards resides in both formal
as well as informal methods.(Demieva, 2016).
This regulation on standards has a deep impact on firm productivity. HR manager of the
organisation should be ensures that information related to regulation and standards are delivered
to employees as well as in the management in an effective manner.
Impact of ethical issues of regulations, legislations and principles
Ethical issues are those which occur while violating or disrupting the society environment
or principles. It is important for every firm to have proper analysis on society, region and culture
when expanding their business activities.
 Regulations- Regulations are important in both society and corporate world. With help
of regulations a discipline is maintained amongst the people. But sometime, regulations
disrupt the environment. There are some regulations in the society which are not acc
epted by the people and violating the ethics of the environment. Thus, ethical issues of
regulations affect the firm at deep level. (Höhenberger, 2016).
 Legislations- Legislations are important for both society and firm. These are
implemented to protect the people from wrong things or un-justice done to them. Ethical
issues are also involved in legislation because they are directly connected with people
and society. Any irrelevant law can create ethical issues at big level.
 Principles- Principles are set of guidelines which guides what to do, how to do and when
to do. Principles are play important role in individual life. Principles are also affected by
ethical issues because there are some principles in the society and in the corporate world
which are of no use and due to which ethical issues arise. So, ethical issues in relation
with regulations, legislations, and principles should be considered and analysed in proper
manner.

CONCLUSION
After a brief analysis of above report it is concluded that in hospitality business toolkit is
essential and play important role in business. Financial management and performance of
business is to be the first priority of organisation. Principles are important to follow and
accept in corporate world. In accounting, book keeping and trial balance are crucial to
examine. Also, in firm life cycle of HR is necessary to use so that policies and procedures are
formed in proper manner. Legislation drives the organisation to work in proper manner.
Company and contract law affects the decision making of business at deep level. Further
regulations and standards ensures the continuity of business at broader level. Ethical issues
are important and affect the growth and development of business. Hence, business toolkit is
to be used in effective way.

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