Financial Performance, HR, and Legal Aspects of Hospitality

This report examines the hospitality business toolkit, focusing on East London Catering, a UK-based firm. It covers financial performance monitoring, including record-keeping, financial statements, and cost evaluation. The report analyzes double-entry bookkeeping, including ledger entries and trial balance. It also reviews HR lifecycle stages, such as attraction, recruitment, and retention, and proposes a performance management plan. Finally, it explores relevant legislation, including company, employment, and contract laws, and their impact on firm operations. The report provides a comprehensive overview of essential business practices within the hospitality sector.

The hospitality business
toolkit

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Examination of all the financial performance monitoring and managing principles that
carriers a lot of value for a company...........................................................................................3
P2. Evaluation of double entry system of accounts that includes bookkeeping in it...................4
P3. Analysing and evaluating an appropriate trial balance..........................................................5
TASK 2............................................................................................................................................5
P4. Reviewing and summarising the different life stages of an HR in the hospitality industry
and their importance in retaining and developing talent.............................................................5
P5. Identification and evaluation of a performance management plan for the sector of
hospitality....................................................................................................................................7
TASK 3............................................................................................................................................8
P6. Analysing the different legislations that are made so that the firms can abide by them in
order to maintain sustainability in the society.............................................................................8
P7. Evaluating three important laws that are company, employment, and contract laws and
their possible impact on the working of the firm.........................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality sector is one of the most crucial sectors from the country’s point of view since it
is one of the largest earning sectors that generates huge amount of profits as it includes many
things like food catering and services, accommodation and lodging, and event planning
(Grimmelikhuijsen, Tummers and Pandey, 2017). In this report there is a brief discussion of a
company that is named East London Catering which is geographically located in the UK and is
operating on a wide scale as compared to its rivals that are working in the same industry. Apart
from that this report covers financial performance monitoring and managing and that too in an
impactful manner so that it can add value to the firm in the long run. Further in this report there
is evaluation and analysis of different aspects like double entry bookkeeping, trail balance, HR
life cycle stages, developing a performance management plan, and laws that are made so that
companies abide to that in their operations.
TASK 1
P1. Examination of all the financial performance monitoring and managing principles that
carriers a lot of value for a company
Financial performance is one of the most critical aspect for each and every company that is
working in the industry as it is related with evaluating and analysing the performance so that
deviations can be examined in detail which can result in formulation of proper and appropriate
rectification measures which can subsequently prove beneficial for the company in the long run.
East London Catering is a firm that puts a lot of attention of it in this regard and examines the
performance of their staff closely so that it can help the firm to grow and prosper in the industry
in which it is operational. There are a number of different principles that are followed by the
above mentioned company and all of them are discussed below in detail-
Maintain proper record of stock- It is very crucial to maintain proper records of all the
transactions so that errors can be minimised and profitability can be increased and thus East
London Catering maintains their records in an accurate and precise format so that it can help the
company to prosper in the market conditions which is highly dynamic in nature.
Making key financial statements reports- It is very essential to make financial reports
so that allocation and allotment of finances can be evaluated in an impactful manner. East

London Catering maintains its financial records like balance sheet and profit and loss statement
up to date so that it can prove useful in the near future.
Evaluating overhead cost- Overhead costs are very crucial and every company tries to
keep it as low as possible so that it can help in the improved profitability and East London
Catering too does the same thing as it keeps its operational cost very low so as to increase its
profitability which can help in the growth and development of the firm in the long run (Bouras,
Kokkinos and Michos, 2020).
P2. Evaluation of double entry system of accounts that includes bookkeeping in it
In accounting aspect all the things are recorded twice so that all the balances can match in
the final result and there are two sides in it named debit and credit. East London Catering has
separated its company and the owner and thus both are treated as separate entities and the
principle of accounts states that assets- liabilities= capital and apart from that it also states that
every transaction has dual effect.

..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
Laun Debity 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
..Amoun
t.
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... 1500
By Laun Debity
Fees ...Account... 500
By Telephone and Internet 2500

expenses ...Account...
By Water
Charges ...Account... 1000
By Wages and Salary ...Account... 2550
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 ..Particulars...... J ..Amount. D ..Particulars. J/ ..Am

at
e
/
F
at
e ..... F
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
Laun Debity
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
Cash ...Account.
1000 By Balance
c/d
1000

..
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. Analysing and evaluating an appropriate trial balance
Trial balance is a statement that is formulated after all the ledger accounts are made so as
to come to a conclusion that everything is recorded without any omission. It consists of a debit
and credit side and it is very important to record every transaction in a precise format so that it
can help in determining a true and fair picture of the company in the long term scenario. The
sides of a trial balance that is debit and credit must be equal to each other (Kaun and Uldam,
2018).
Trial balance
..Particulars...... Debit Credit
Cash ...Account... 30950
Capital ...Account... 28000
Rent ...Account... 2000
Purchase ...Account... 39000
Prepaid insurance Policy 1500
WH Adams 17000

Ltd ...Account...
Laun Debity
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. Reviewing and summarising the different life stages of an HR in the hospitality industry and
their importance in retaining and developing talent
Human resource is one of the most crucial job position in every sector and for hospitality
sector it becomes much more important due to the size of its operations and thus East London
Catering focus a lot on this regard so that it can help the business firm to grow and grab
appropriate opportunities that are prevailing in the current market scenario like digitalisation. HR
also helps in recruiting talented and skilled personnel’s so that their expertise can prove
beneficial from the company’s point of view. There are a number of different stages of a HR life
cycle and all of them are briefly explained in an elaborated manner below-
Attraction- The process starts from searching for a candidate that meets all the required
skills for the company’s profile and has relevant experience in the sector. East London Catering
employs persons that are already experienced in this sector to do this job so that it can prove
beneficial in selecting candidates in the near future.
Recruitment- It is one of the major role of a HR as they majorly recruits staff for the
company that are intellectual enough to meet the criteria fixed by the higher management
authorities at the starting of the business. East London Catering’s HR firstly examines all the
vacant job positions in a systematic manner and then recruits the individual according to it so
that it ca carter the needs, requirements, and demands of the firm in the long run (Cohen, 2019).
On boarding- This stage helps the company to get new and fresh persons that are able
and willing to do the job in the present circumstances that are briefed earlier by the HR. East

London Catering selects the best candidate for the job from all the alternatives that are available
with the company so that it can help in the improvement in the results of the business.
Enablement- This stage is very crucial as it is related with making the new joining
familiar with the conditions and the environment of the company so that all the activities that are
performed by them must be directed towards the attainment of the goals and objectives of the
company. East London Catering maintain a very good and positive environment in the company
which also helps the workers that are working with the firm as it helps in building a relationship
with the organisation.
Development- This stage is related with making appropriate arrangements so that the
persons that are working for the company can develop as an individual too which is very
essential in the industry. East London Catering organises several programs that meet all the
requirements and that too within a limited time period.
Retention- The life cycle of an HR involves many stages and this is one of them as in it
the HR has to perform many things like performance appraisal, development and training
programs for the staff, motivating current workforce, etc. and East London Catering’s Hr
performs all these aspects in a precise manner so that it can help the company to grow and
prosper in the market.
Separation- It is the last stage and in it retirement of the persons are taken care of so that
it can set a good example in the industry and East London Catering take care of this aspect and
provides all the basic necessities to all the retired employs (Usunier, Van Herk and Lee, 2017).
P5. Identification and evaluation of a performance management plan for the sector of hospitality
Managing performance of the employees that are working for the company is the most
important as well as crucial aspect as it helps in the improvement of performance in addition to
the allocation and allotment of the available resources in an effective and efficient manner. It
also helps in finding out the possible loop holes within the organisation so that efforts can be
made in that regard only which can save a lot of time and funds that are used in this regard. This
also helps in attainment of all the set goals and objectives and that too within a limited time
frame making the firm profitable in the long run. East London Catering employs a team of
experts that does a detailed examination of all these aspects of performance so that appropriate
decisions can be taken further that can prove beneficial from the company’s point of view

(Bryant, Straker and Wrigley, 2020). There are a number of different stages if performance
management plan and they are explained below in detail-
Stipulation of performance objective- It is a stage that is related with examining the
present positioning of the firm and comparing it with the future positions that the company is
willing to achieve.
Training- In this stage proper training is given to all the staff so that all the activities that
are performed in the organisation are directed towards a single goal.
Evaluation of employee performance- In this stage performance of each and every
individual is evaluated so as to check the level of performance in the firm.
Performance management plan for newly appointed account assistant-
Problem
recognisance
Employee
engagement
Set clear
objective
Training
programmed
Performance
review
Data dealing
problems
Training must be
given in an
appropriate order
Skill
improvement
including
handling of the
relevant data
(Gehman and
Soublière, 2017)
Superiors and
subordinate must
be well bonded
with each other in
the training
program
4 months
Accounts related
problems
Educating the
staff
Giving general
knowledge
regarding the
subjects of
accounting
Training must be
given during the
initial period of
joining
6 months
TASK 3
P6. Analysing the different legislations that are made so that the firms can abide by them in order
to maintain sustainability in the society
There are various laws that are made by the government of the UK for the companies that
are operating in the market mainly to stop the malpractices like cheating that are occurring in the

absence of these laws. Hence these legislations carries a lot of importance in the industry and
every firm must fulfil these in order to survive and sustain in the market for a much longer time
period as compared to its rivals that are also operational in the similar market (Тимчук and
Нещадим, 2017). East London Catering too is bound by different legal aspects and all of them
are discussed below in detail- Licensing Act, 1964- It is an act in which government provides appropriate license to the
firms in order to run in a particular area or a country and thus it is very important to carry
a valid license before operating in the market and the above mentioned firm carry all the
relevant licenses that are required for it to perform in the industry in an impactful manner. Health and Safety Act, 1974- This act is related with providing basic security to the
people of the country by marking food products according to their manufacturing date so
that the fresh one can be easily identified so as to reduce food adulteration in the market.
East London Catering keeps the stock of food products up to date and does not stock
expired products and neither it sale those goods (Cho, 2017).
 Equality Act, 2010- This act provides equality to every individual that is there must be
no discrimination on the basis of caste, creed, religion, caste, etc. and East London
Catering’s management keeps a tab on all the activities so that there would be no
discrimination in the company.
P7. Evaluating three important laws that are company, employment, and contract laws and their
possible impact on the working of the firm
The three laws namely contract, employment, and company law possess a lot of value in
the current market scenario which is highly competitive and dynamic in nature and thus it is very
important as well as crucial for each firm to abide by all these laws so that it can add value to the
firm in the long term (Lindberg, 2016). The three laws are further explained below in detail-
Company law- This law states the laws for the company so that its operation must not
harm the ordinary resident of the country in any manner. East London Catering obeys all the
laws and legal terms that are formulated by the company so that the firm can perform in an
effective and efficient way which can help it to grow and prosper in the long run (Scholl-
Grissemann and Schnurr, 2016).