Hospitality Business Toolkit Report: Finance, HR, and Compliance

This report provides a comprehensive analysis of the hospitality business, focusing on key areas such as financial management, human resources, and legal compliance. It begins with an investigation into the principles of managing and monitoring financial performance, including recording expenditures and incomes, defining sales and purchases, and understanding different types of costs. The report then delves into the double-entry bookkeeping system, detailing how to record sales and purchases in the general ledger and produce a trial balance. Furthermore, the report examines the HR life cycle, emphasizing its importance in retaining and developing talent within the hospitality sector. It explores the development of a performance management plan, including techniques for resolving negative behavior and addressing staff retention issues. The report also identifies specific legislation that hospitality organizations must comply with and outlines different functional roles within the sector. Finally, it discusses various methods of communication, coordination, and monitoring within hospitality departments, offering a holistic view of the industry's operational and strategic aspects.

HOSPITALITY
BUSINESS
TOOLKIT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Investigate the principles of managing and monitoring financial performance.................1
2. Double entry book keeping system of debits and credits to record sales and purchases
transactions in general ledger.................................................................................................2
3 Produce a trial balance applying the use of the balance off rule to complete the ledger....3
TASK 2............................................................................................................................................5
1. Review the different stage of HR life cycle applied to a specific hospitality job role and
their importance for retaining and developing talent.............................................................5
2. Develop a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behaviour and over come issues of staff retention........5
TASK 3............................................................................................................................................6
Identify specific legislation that a hospitality organisation has to comply and adhere to......6
TASK 4............................................................................................................................................6
Different functional roles within the hospitality sector..........................................................6
Different methods of communication, coordination and monitoring in specific department of
hospitality industry.................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality industry is a broad category of fields which is included service industry such
as transportation, theme parks, travelling and additional fields (Kysilka and Csaba, 2013) .
Hospitality important for business because it will help to keep customer happy and engage with
them for the growth of business. The hospitality industry depends on the availability of leisure
time and disposable income. The business organisations is hospitality sector are improving and
implementing effective strategies in order to achieve growth and success. The chosen
organisation Savage drink & food which is based on London, UK. It is specialises in salads,
smoothies and blended juice. This report focused on manage finance and record transactions to
minimise costs of hospitality industry. Apart from this manage the human resources life cycle in
the context of HR strategy, Potential impact of legal and ethical consideration on a hospitality
business. In addition importance of coordination and integrating various function of departments.
TASK 1
1. Investigate the principles of managing and monitoring financial performance
(a) Recording all expenditures and incomes with the help of table
Incomings Outgoings
Wages Weekly food shopping
Gifts Clothes
Benefits Gifts
Allowances Household utility bills
Drinks
(b) Explain following terms as per hospitality industry
 Sales – A sale is a dealing between two parties where the buyer received goods
(Intangible & intangible), services and assets from another party in exchange for money.
It is a legal agreement between a buyer and seller on the basis of security money. A sale
function as a contract where the buyer and seller can select goods and services as per
requirement. In hospitality industry sales are depended on services and quantity because
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if they are provided good quantity and customer feel good experience so it will directly
affect to sales of particular sector.
 Purchase – It is states that business organization can acquire their goods and services for
fulfil their goals and objectives. For purchasing process the company has applied set of
standards according to hospitality industry. In the context of hospitality industry products
are purchases as per requirements like in hotel need much more products and item and
many times it will unlimited from quantity (Singh, 2015) . Types Of Cost – In the reference of hospitality industry cost are divided into three parts -
Fixed cost - A fixed cost is an expenses or cost that does not change with an increases or
decreases in the number of goods or services which are produce and sold. It is paid by company
and it is independent business activity. It is important cost of hospitality industry because in
budgets all amounts will be change but fixed cost remain as it is.
Variable cost – A variable cost is related to corporate expenses that will affect to changes
in order to production output. It is mainly depended on production of company and their volume.
When production is rises so it will increase and production decreased so it will decreases. In
hospitality industry it will include costs of raw materials of food and packaging.
Semi variable cost – It is also known as semi mixed cost and semi fixed cost because it is
mixture of variable and fixed cost. When production will be flexible so it will affect to cost and it
will became variable after the production when it will exceed. If no production occurs so it will
stay remain.
2. Double entry book keeping system of debits and credits to record sales and purchases
transactions in general ledger
Double entry system – The Double entry system of accounting related to transaction of
every business. The amounts of transaction must be recorded in a minimal of two accounts. The
double entry system also needed all transaction of business and it is recorded in related accounts
in particular side like debit and credit. In the end both side will be equal because it shows all
transaction are recorded and their effect show both side (Anderson and et.al, 2017).
Particulars Debit Credit
Cash in hand (Overdraft) 10700
Petty cash expenses 750
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Cash sales 3350
Credit card sales 14795
Beverage purchases 12970
New kitchen equipments 6540
Food purchase 7900
Free Issues 575
Discount received 2300
Credit notes 190
Purchase Return 200
Utilities 475
Rent 2850
Functions and events (Income) 5967
Wages 4590
Debtors 700
Till shortage 152
37502 37502
From the above table all debit amounts are shown in debit side and all credit amounts are
shown in credit side. After that balance will be equal because all transaction are recorded in trial
balance.
Particulars Debit Credit Transaction amount
Wages 16489 16489
Gifts 24000 24000
Benefits 25000 25000
Allowances 15900 15900
Weekly food shopping 26415 26415
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Clothes 17809 17809
Gifts 15000 15000
Household utility bills 3678 3678
Drinks 10032 10032
Lunch purchases 8455 8455
81389 81389 162778
3 Produce a trial balance applying the use of the balance off rule to complete the ledger
Balance off rule – It is a list of all the balances in the nominal ledger accounts. It will
help to record every transaction in related column after that matched both column. At the end of
accounting period, additionally at the end of a month and a year that balance of every ledger
account. In the sequence of trial balance can be produced as a part of accounting cycle. This
process known as balancing off accounts and balancing of ledger.
Particulars Debit Credit
Bank loan 12000
Cash in hand 11700
Capital 13000
Rates 1880
Trade creditors 11200
Purchases 12400
Sales 14600
Sundry creditors 1620
Debtors 12000
bank loan interest 1400
Other expenses 11020
Vehicles 2020
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52420 52420
As per the above table all transactions are recorded in appropriate column after that
balancing off both side. Both side can be matched with each other so it will shows all
transactions are recorded from ledger accounts.
Steps of drawing trial balance -
There are mentioned some steps which is described of steps to drawing trial balance in
systematic way -
 Firstly open every ledger account to record of total debit and credit from every ledger
accounts.
 All amounts are entered in right column because debit and credit do not equal, it mean
there is error in general ledger account.
 Trial balance produce on regular basis, monthly basis and yearly basis and it will helps to
identify any problems and issues related to amounts (Herity and et.al, 2018) .
 The trial balance is prepared before any adjusting entries and it will detect all
mathematical problems.
 If there is finding any error to enter credit and debit column so again check all amounts
after that match all concepts from ledger books.
 Many times both columns are not matched so that time open suspense account and
difference amount entered in. when find out reason of different amount so it will enter in
right column with item name.
TASK 2
1. Review the different stage of HR life cycle applied to a specific hospitality job role and their
importance for retaining and developing talent
For retaining and developing talent, it is very essential for Savage food & drinks to
recruit skilled and capable employees. There is hiring of employee to see performance on various
stages of HR life cycle in regarding to hospitality industry. So it is crucial to retain employees
and improve their talent.
In the reference of HR life cycle, HR processes can be improved in effective way for
talent planning. From the above discussion HR life cycle is important for any organisation to
search talent as per the requirement of company (Peric and Djurkin, 2014). In the relation of
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strategic talent management HR life cycle can remove unwanted process which create problems
to select right people for right job. There is coming many issues of staff retention because many
time organisation can not fulfil expectations of employees and there atmosphere affected to
intention of an employees. With the help of exit interview the employer know about exit reason
of every employee.
2. Develop a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behaviour and over come issues of staff retention
Performance management plan is proper planning of performance which is related to
performance at work place. There is focus on desired result and addressed any effective plan
which is guided to how to measure performance of each employee. It is forward looking which is
focused on future goals.
The role play script for an employee who is rude with colleagues is discussed among
employee and manager of savage food & drinks is described below -
Script 1
Manager:- Mr. Alex I need you to bring that file into my cabin which I gave you last week.
Mr. Alex:- sir, project management file?
Manager:- yes
Mr. Alex- Sir, the file is not complete.
Manager:- why have you not completed it?
Mr. Alex:- Sir, because I am working on other files as well I didn't get the time. Tomorrow it
will be done.
Manager:- You better complete it tomorrow else I have to remove you from the team.
Employee:-Sure sir.
Script 2
Manager:- Mr. Alex I need you to bring that file into my cabin which I gave you last week.
Mr. Alex:- sir, project management file?
Manager:- yes.
Mr. Alex- Sir the file is not complete.
Manager:- why have you not completed it?
Mr. Alex:- Sir, because I am working on other files as well I didn't get the time. Tomorrow it
will be done.
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Manager:- It's okay, I understand you are a hard working employee take your time.
Mr. Alex:- Thank you sir. The file will be completed as soon as possible.
Talent Acquisition
It is a holistic, ongoing process where involved three steps – Recruit, select and onboard.
The main goal of recognize and meet all the labour requirements of a company. It is directly
related to human resource department where HR manager can prepare strategy for attract new
talent in order to meet their goals and objectives. It is important for company to fulfil their
requirement for achieve success and growth from future perspectives. There is determined many
problems which is related to talent acquisition and faced by company -
 Inability in using data effectively – Many time recruiters can face different challenges
when they hiring new employees so that time need to maintain balancing the speed of
hire and quality of hire. Increasing the recruitment speed is perhaps one of the hardest
tasks for the recruiters of Savage drink & food.
 Lack of efficiency during the recruitment process – Most of the recruiters are wasting
their skills on ineffective and unnecessary administrative tasks which can provide results
as duplicate. Many recruiters are used their skills in effective work like sending mail to
final candidate and selection for the client. In the context of Savage drink & food the
recruiter can use their skills in effective work.
TASK 3
Identify specific legislation that a hospitality organisation has to comply and adhere to
Covered in PPT
TASK 4
Different functional roles within the hospitality sector
Savage Food & Drinks
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Theme Park
Hospital
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Hotel
As per the structure of savage food & drinks at top management consider general
manager who monitor all works and guide to their subordinates. In theme park book keeper and
general manager both are important and instruct as per the requirements of objectives. In
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hospitality industry firstly top management after that categorise in manager of different
departments after that staff members in each departments. In hotel the structure based on top
level, middle level and lower level. According to that there work division divided.
Different methods of communication, coordination and monitoring in specific department of
hospitality industry
There are Described different methods which can help for communication, coordination
and monitoring in specific department of hospitality industry -
Text – It is a simplest method of communication which will help to communicate at all
levels employees and provide information on time (Stanciu, Constandache and Nenciu, 2015) .
Email – It is using as text message but it is also using as formal and informal way to
circulate information.
Telephone – It is a way of communication where provide information through voice.
Many time employees are not understand by text or email that time a call provide easily all
information.
Letter – It is a way of communication and provide all appropriate in order to provide
information to particular person.
CONCLUSION
As per the above report it is concluded that hospitality industry is broad industry where
provide different types of products and services. In this industry hotels and restaurants are
divided in different department and it is based on trial balance and budgets which will help to
analyse of performance. There is conducted HR life cycle which will help to hiring and retention
of employees for long time and evaluate different roles of particular sectors. These are divided in
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different levels and their works. In organisation have many methods of communication which is
helping to communicate with employees as well as provide information.
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