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

This report provides a comprehensive overview of the Hospitality Business Toolkit, focusing on key aspects relevant to the hotel industry, using Hotel Hilton as a case study. The report begins with an introduction to the hospitality industry, highlighting its reliance on consumer satisfaction and discretionary income. It then delves into financial statements, including balance sheets, profit and loss accounts, aged debtors, and inventory records. The report also examines the HR life cycle, including recruitment, education, motivation, evaluation, and celebration, and discusses performance management strategies to address staff turnover and motivation issues. Furthermore, it explores legal and ethical considerations within the hospitality sector, such as fair work legislation, minimum compliance requirements, and food and beverage regulations. The report concludes by emphasizing the importance of coordination and integration of various functions within the service sector.

The Hospitality
Business Toolkit
1

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1. ..........................................................................................................................................4
TASK 2............................................................................................................................................5
P2. ..........................................................................................................................................5
P3. ..........................................................................................................................................6
TASK 2............................................................................................................................................7
P4 ...........................................................................................................................................7
P5............................................................................................................................................8
TASK 3............................................................................................................................................9
P6 ...........................................................................................................................................9
P7 .........................................................................................................................................10
TASK 4..........................................................................................................................................11
Covered in PPT. ...................................................................................................................11
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................12
2

INTRODUCTION
Hospitality industry is much broader than the other kind of industries that composed on
niches of only some no. of different businesses which majorly focus on the consumer satisfaction
and leisurely meeting consumer needs. It is one of most unique industry which relies majorly on
the discretionary income and leisure activities. This assignment rely on Hotel Hilton which is
multinational organisation provides wide range of services under one roof. Respective report is
based on the investigation of way to negotiate finance and evidence transactions in order to
downplay cost responsible within hospitality sector. Further it includes double entry book
keeping system of debit and credits to record the transactions in ledger. In addition to it includes
the way HR life cycle management within context of HR strategy. It also includes the effect of
legal and ethical aspects on respective sector in gaining desirable outcomes. At last it submit the
significance of coordination and integration of various functions or roles of divisions in service
sector.
3

TASK 1
P1.
Preparation of key Financial statements- The financial statements are basic reports of any
business. Financial statements are the balance sheet and P&L a/c statement. Balance sheet helps
an organisation to know its financial heath and position. It consists of all assets and liabilities of
company. Balance sheet is also known as position statement (Bouwer, 2019). On the other hand,
P&L a/c (which is also known as income statement) tells the financial soundness of business by
showing revenue earned and expenses incurred. With respect to Hotel Hilton, the company's true
financial position and soundness can be easily be derived from both these statements.
Preparation of aged debtors trail balance- Debtors are the people who owes to company.
These people need to make payments to the company. Hotel Hilton should maintain records for
its debtors every month so that they can have an account for the people whom they have to
receive payment. This will help the company in monitoring its debtors.
Preparation of Inventory records:- Business invest money in machinery, equipments and
raw materials ( includes finished and semi-finished goods). From such records the company can
keep a maintenance eye on its stock. The company, Hotel Hilton, should maintain its inventory
records so that it can check what and how much the stock is available. The amount of stock went
waste, what and how much stock is need and when etc. This will help the company in prevention
of double ordering of stocks, proper maintenance and account of inventory and so forth.
Analysis of HR- Human resource are considered as an important resource of any
organisation. The company on a regular basis should monitors its human resources related
activities. If the turnover rate is high, then the company needs to invest more on its recruitment
process. Financial statements like P&L A/c, Balance Sheet etc. can be prepared to assess
performance of business. Trial Balance of Aged Debtors can be made to find out those debts
which have not been paid (Bilro, Loureiro and Guerreiro, 2019). Inventory records can be
maintained to monitor inflow and outflow of stock. Working Capital Statements and Ratios can
be prepared to assess performance and see if liquidity position is maintained. Fund Flow
Statement and Cash Flow Statement can be made to track the flow of funds organisation.
Analysis of overheads has to be done to ensure that expenses are in control to avoid unnecessary
expenses. Marketing Expenses can be analysed to find out if there is a need to increase them to
4

bring efficiency in marketing activities of the company. Human resources related activities also
need to be monitored to see if there is a HR related issue in enterprise. Creation of dashboards is
also necessary for an organisation so that weekly, monthly and yearly performance can be
checked and monitored. Competitive analysis needs to be done so as to see how the company is
faring in comparison to its rivals and competitors in the market
TASK 2
P2.
Double entry book keeping system- This may be described as a process that is twice in records of
accounts to enter business transactions. It means that perhaps the overall debit side balance is
equivalent to the amount of credit.
Particulars Debit Credit
Cash in hand 15700
Petty cash expense 500
Cash sale 2350
Credit card sale 18000
Free issue 480
New kitchen equipment 3804
Food purchase 8200
Beverage purchase 13501
Purchase return 463
Discount received 4500
Credit note 1000
Rent 800
Utility 486
Function and event
(Income) 6987
5

Wages 4584
Debtors 800
Till shortage 145
Total 33300 33300
The word cash in hands is used as a credit card interest and activities are called revenue
with equivalent amounts in the case balance.
Double-entry accounting method, the word trial account, precedented on the first row,
represents both assets and liabilities over a certain period of time. Both values are supposedly
defined.
Particulars Debit Credit Transaction amount
Wages 15000 15000
Gifts 20160 20160
Benefits 25000 25000
Allowances 15800 15800
Weekly food shopping 24540 24540
Clothes 18890 18890
Gifts 12500 12500
Household utility bills 2648 2648
Drinks 9932 9932
Lunch purchases 7450 7450
Total 75960 75960 151920
P3.
Balance off rule- The accounts of a company must close at a the conclusion of a financial
period and those who are not shut down will be retained until this year. This period is called
balance (Benson and et.al., 2020). The main objective here is to test whether the material in the
report and invoices are sufficient or not. At the end of the fiscal year all reports should be
reviewed so that the overall success of the business is measured.
6

Particulars Debit Credit
Bank loan 15000
Cash in hand 12800
Capital 11000
Rates 1900
Trade creditors 16300
Purchases 12400
Sales 25800
Sundry creditors 1350
Debtors 11546
bank loan interest 1800
Other expenses 12504
Vehicles 1500
Total 54450 54450
The tables mentioned shows that the check equilibrium of the company is maintained at
the end of the year, showing that all the reports of articles and receipts are accurate and correct.
TASK 2
P4
The HR life cycle is the tool enables to visualize way employee engages with the
organisation they are being a crucial part of. There are majorly five phase of the HR life cycle in
need of improvement and retention of employees positively that are as follows:
 Recruitment: To grow the business required the hiring the right kind of personnel as
hiring decisions plays very much important role in turnover, productivity and growth
(Benson and et.al., 2020). It most potential for Hotel Hilton to select one of most
potential candidates as per the skills and requirement of capabilities to gain desirable
outcomes positively.
7

 Education: The education process begins within the organisation while they begin their
career in starting their new business. In that regards Hotel Hilton arrange the Training
and development session for their employees to educate them in proper manner. By
giving proper training and development to give proper education regarding their work to
gain desirable outcomes.
 Motivation: Turnover is highest in the first ninety days due to the lack in motivation of
employees (Bilro, Loureiro and Guerreiro, 2019). In context of Hotel Hilton they are
majorly devoted to create strong relationship within the first 90 days in order to motivate
and retain employees in firm.
 Evaluation: In respective phase of HR life cycle helps to acquire and retain most talented
workforce in which supervisor evaluates by examine level of performance of personnel.
By using reviews and specific metrics enables to determine an individual fit for the job or
not. Respective factor helps in giving appreciation to right individual that enhance
retention rate in organisation.
 Celebration: In final tier of HR life cycle for achieving the opportunities to reenergize
personnel by giving appreciation and setting milestones in order to remain competitive in
marketplace. In context of Hotel Hilton they provide flexible working schedules, gifts
cards, extra points and many more attributes to acquire and retain potential personnel in
organisation.
P5
Performance management is the chain of activities used by organisation to align their
knowledge workers and resources to objectives by ensuring that they can gain short term
objectives in effective manner (Boateng, 2019). In context of Hotel Hilton they faced the issue
of heavy turnover of staff members and lack of motivation within the employees that hinders
their self interest in gaining desirable outcomes. Here are the performance management plan to
overcome from such issues:
Plan:
In respective stage of performance management organisation by accessing priorities by
setting expectations for each and every individual. Respective activity helps to provide direction
and by outlining processes. In context of Hotel Hilton they coordinate training and development
8

session to employees to evaluate the requirement of monetary with non monetary benefits of
employees to gain desirable outcomes from them.
Monitor:
In respective stage of performance management, organisation communicate with the
people on the specified time period by focusing on level. They set priorities by asking simple
questions. In context of Hotel Hilton, they by monitor the activities of their employees and
identify the major hurdles faced by them which hinders their motivation level in giving one of
their best efforts.
Review:
In respective stage of performance management, organisation review the important
aspects that they already been done (Bouwer, 2019). By paying attention the proactive strategy
to overcome from the issue of lack of motivation and employee turnover positively.
So it can be said that performance management is one of most important aspect for the
organisation to improve the level of performance in order to gain potential outcomes.
TASK 3
P6
Hospitality abidance is chain of activities assure about the organisational administration
and worker precede rules and legislations, standards and various kinds of ethical work practices
that apply to industry and organisation in gaining desirable outcomes. Here are the important
legislations related to hospitality industry
The fair work legislation:
Respective legislation covers the close relationship of employee and employer by giving
them proper roles and responsibilities in regards of their work. By using respective guidelines,
acts that provided to both personnel and right kind of working conditions such as recognition
and national minimum wages. In context of Hotel Hilton by using respective legislation they can
be able to treat the people in fair manner which enhance their motivation level and retention.
Minimum requirements for hospitality compliance:
By obliging the standards such as ISO 9001 that are complementary to the hospitality
companies must satisfy to operate legally that helps in gaining potential outcomes. The major
documents required are health with safety regulations policies and norms and many more to gain
9

desirable outcomes. By using respective factors organisation can be able to compliance
positively with the changes in order to gain desirable outcomes.
Food and beverage regulations:
F&B regulations are most important to protect the consumer interest, in order to serve
consumers positively (Carpi and Pınar Şenoğuz, 2019). There are five food safety standards
which includes interpretation and application, food safety programs which defines about
companies plan to control and adaptation of safety hazards collaborated with food handling parts
of business. Food safety practices and general requirements that helps to governs specific control
over the food deliveries, storage, handling and displaying, packaging, transportation and recalls.
In context of Hotel Hilton by using respective legislation in their business practice can be able to
work in a systematic manner.
P7
For an organisation it is very much important to obey all kinds of rules and regulations to
systematically organise the works and activities within the organisation in order to gain desirable
outcomes (Chan, 2019). It is considered most vital for organisation to evaluate inner and outer
processes of business environment while applying company, employment and contracts within
organisation. In context of Hotel Hilton by setting goals and objectives in order to maintain the
positive work environment. Here are the some crucial factors that needed to focus in order to
enhance productivity and profitability of organisation.
Company Law:
Organisation or company is one of most important factor or attribute that taken into
consideration within the premises in order to achieve potential outcomes. Within the organisation
there are lots of policies and regulations that are adopted by them impact both in positive and
negative manner (Elshaer, 2019). It is significant for Hotel Hilton to evaluate business
environment and marketplace where they majorly deal with. Change in business law deals with
change in business operations as it affect on employer to employee relationship and vice versa.
Employee law:
The very important component of business is employment law that affects on the
business and workplace. It determines the rights and duties regarding hiring, wages and benefits,
discrimination at work place, family and medical leave, termination and many more activities.
10

Respective factor directly contributes in the business decision-making as it directly affect on
organisational environment and their employees.
Contract law:
In respective legislation that is very important to understand contract law's effects on firm
and its activities in providing the goods and services (Filimonau and Delysia, 2019). Respective
legislation concerned with the from purchasing of products till the rendering of it in proper
manner. Respective contracts states about whether products sold in particular range of price. In
context of Hotel Hilton they evaluate each and every factor in proper manner to gain desirable
outcomes.
TASK 4
Covered in PPT.
CONCLUSION
It has been summarised from respective assignment that hospitality industry is one of
most crucial of economy that rely on the leisure activities and strategies related to it for gaining
desirable outcomes. To manage the business activities needed to apply the HR life cycle to select
and retain most potential candidates within the organisation. Performance management is one of
most important aspect for organisation to evaluate own performance of organisation and to
potential improvements to gain desirable outcomes. Moreover, rules and regulations that
followed by a firm enables to take appropriate kind of decision making and coordination in
various department by communicating properly.
11

REFERENCES
Books and journals:
Benson, T. and et.al., 2020. The development and validation of a toolkit to measure consumer
trust in food. Food Control. 110. p.106988.
Bilro, R.G., Loureiro, S.M.C. and Guerreiro, J., 2019. Exploring online customer engagement
with hospitality products and its relationship with involvement, emotional states,
experience and brand advocacy. Journal of Hospitality Marketing &
Management. 28(2). pp.147-171.
Boateng, A.K., 2019. Green hotel development. ORAȘE INTELIGENTE ȘI DEZVOLTARE
REGIONALĂ, 3(01), pp.125-136.
Bouwer, J., 2019. Ethical dilemmas and decision-making (models). In Ethical dilemmas in the
creative, cultural and service industries (pp. 77-96). Routledge.
Bradshaw, C. and et.al., 2019. Social Media in the SME Business to Business Environment and
Toolkit.
Carpi, E. and Pınar Şenoğuz, H., 2019. Refugee Hospitality in Lebanon and Turkey. On Making
‘The Other’. International Migration. 57(2). pp.126-142.
Chan, D., 2019. Urban Design Thinking: A Conceptual Toolkit: Kim Dovey Bloomsbury
Academic, 2016 304 pages $37.95 USD. Technology| Architecture+ Design, 3(1),
pp.119-121.
Elshaer, A.M., 2019. Labor in the Tourism and Hospitality Industry: Skills, Ethics, Issues, and
Rights. Apple Academic Press.
Filimonau, V. and Delysia, A., 2019. Food waste management in hospitality operations: A
critical review. Tourism management. 71. pp.234-245.
Hess, S., Kilb, M. and Garcia, I., 2020. Contract Construction: Creating an Effective Licensing
Toolkit in an Academic Library Setting. The Serials Librarian, pp.1-6.\
Higgins-Desbiolles, F., Moskwa, E. and Wijesinghe, G., 2019. How sustainable is sustainable
hospitality research? A review of sustainable restaurant literature from 1991 to
2015. Current Issues in Tourism. 22(13). pp.1551-1580.
Jarratt, D. and et.al., 2019. Developing a sense of place toolkit: Identifying destination
uniqueness. Tourism and Hospitality Research. 19(4). pp.408-421.
Jasnoff, G.R. and Sheikh, A., 2019, June. Creating ePortfolios as Components of Undergraduates
Employability Toolkit. In EdMedia+ Innovate Learning (pp. 158-161). Association for
the Advancement of Computing in Education (AACE).
Wiltshier, P. and Griffiths, M., 2019. Managing Religious Tourism. CABI.
Wiltshier, P., Griffiths, M. and Clarke, A., 2019. 14 Toolkit: Managing Relationship Marketing
with Sacred and Secular Consumers. Managing Religious Tourism, p.167.
Online:
5 Ways to Communicate More Effectively in the Hospitality Industry, 2020. [Online]. Available
through. <https://www.vocovo.com/hospitality/>.
12

13

14