Hospitality Business Toolkit: Financial and HR Management Report

This report provides a detailed analysis of financial and human resource management within the hospitality sector, using Elcot Park Hotel as a case study. It begins by investigating the principles of managing and monitoring financial performance, including the application of the double-entry bookkeeping system, the use of ledgers, and the production of a trial balance. The report then assesses the management of the human resource lifecycle, focusing on HR strategies, developing performance management plans, and addressing potential impacts of legal and ethical considerations. The report examines how company, employment, and contract law impact decision-making in the context of Elcot Park Hotel. Key topics include financial record-keeping, HR lifecycle management, performance planning, and ethical considerations relevant to the hospitality industry.

Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
Investigating principles of managing and monitoring financial performances......................1
Application of Double entry Book-keeping system...............................................................4
................................................................................................................................................5
Ledgers:..................................................................................................................................6
Producing basic Trial balance................................................................................................9
Trial Balance........................................................................................................................10
ACTIVITY 2..................................................................................................................................10
Assessment of managing Human resource Life cycle in context of HR strategy................10
Developing Performance management plan.........................................................................13
Potential impacts of legal and ethical considerations on Elcot Park Hotel..........................15
How Company, Employment and Contract law impacts decision-making in Elcot Park Hotel
..............................................................................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
Books and Journals...............................................................................................................17

INTRODUCTION
Hospitality sector is one of the most integrated sector of business with the social life of
people in modern world. People make use of Hotels and its services occasionally, professionally
as well as regularly. Also, the business have developed and making continuous development in
order to cater all the demands of users and also tries forecasting demands of future so they can
make developments in advance. Through this way it harbours needs of society and is engaged in
making their moments of life, like Tour and Trips, marriages, functions etc. more delightful and
enjoyable. While fulfilling these purposes, the Hospitality industry have thus becomes a full-
fledged business in itself and have acquired various gradings, types and classification (Buhalis
and Leung, 2018).
Through this report it have been tried to comprehend different business operations and
dimensions involved in Hospitality sector. And for the purpose of bringing more clarity a case
study on Elcot Park Hotel is carried out.
The report first discusses about how Elcot Park Hotel manages and carry their Financial
recordings, what tools and methods its uses, what are its source documents and their principles of
monitoring financial performance. Secondly, a discussion on the role of Human resource
manager is made. The report discusses about Human resource lifecycle as part of HR strategy,
importance of retaining and developing talent followed by understanding and developing
performance management plan. Followed in the report discussion are various ethical and legal
issues which are confronted by Hospitality sector.
ACTIVITY 1
Investigating principles of managing and monitoring financial performances
Financial performance of any business deals with the organisational efficiency to cater,
retain, manage and grow their financial sources. Financial sources includes those sources that
helps any business to raise funds, it can be business's own capital, money of Shareholders,
outsourced borrowings from financial institutes, debentures, bonds etc. and gains from
investments. In order to keep a track record of every financial sources, what is its cost for
business and to identify its profitability a business must keep a proper record of these sources
and all the transactions pertaining to it (Camilleri, 2020). Likewise, in case of Elcot Park Hotel,
the business maintains its financial records in a complete process and defined order, that includes
1

knowing basics from daily receipts and vouchers of all transactions taking place of different
business operations, recoding them over a ledger and accounting transactions of each component
in their respective accounts. Further, the process of recording follows maintaining Trial balances
from ledger and finally preparing Cash flow statements (tracking inflow and outflow of cash in a
business cycle) and analytical accounts, to know actual performance of business. While carrying
out this complete process, that nearly takes one business cycle, Elcot Park Hotel follows a set of
principles that helps it to not only maintain records but also manage its financial performance
very efficiently (Chang, 2018). These principles are:
Consistency- This principles states that there should be a standard manner of identifying,
recording and analysing the business transactions in the organisation as seen in the case of Elcot
Park Hotel that there is a specified process from receipts and vouchers to final analytical
accounts. This specified path helps organisation to monitor the transactions efficiently and draw
conclusion thereon.
Timeliness- Under this principle it is observed that the transactions should be recorded within a
reasonable time frame. For example if any guest in the hotel checks-in in September and leaves
the hotel within a week, but its records of bills payment, food orders etc. are made in November,
then this fault will affect all other transactions from September to November be it regarding cash
flow, food, use of telephonic facilities, Internet service etc. and the complete financial picture
will be disturbed for Elcot Park Hotel.
Justification- The principle mention that, there must be good and clear justification or
explanation about happening of any transaction at the time it actually took place supported by
business goals. This helps Elcot Park Hotel in avoiding vague and useless transactions in the
business records (Filimonau and Delysia, 2019). Vague transactions are those which do not
provide clear picture of what actually in a particular event. Avoiding vague transaction is helped
by maintenance of proper, clear and separate accounts supported by effective classification of
accounts.
Documentation- The principle states that every transaction takes place shall be properly
documented in a specified manner and under specific procedure of business organisation. This
principle is an aid to the justification principle and together both of these principles helps Elcot
Park Hotel to lay out clear picture from their financial transactions.
2

Certification- Principle of Certification mentions that all documents and records of transactions
in the business must be certified by proper authorities with in as well as outside the business, and
contain signature of necessarily authorized persons. This principle will help Elcot Park Hotel to
project reliability of their financial data (Gnanapala, 2017).
3

Application of Double entry Book-keeping system
Double entry book keeping system is a process of recording financial transactions in a
business organisation or any other organisation under which transactions are recorded in two
way manner. That means for every transaction entries shall be made in two accounts. In this
process there are two sided, one is Debit side and the other is credit side, shown in left and right
side of each account respectively. This system is followed by Elcot Park Hotel while carrying out
their financial recordings. Moving ahead in this process it is necessary for businesses to maintain
accounts of each sort of category differently. For this purpose there are three types of accounts
specified in this system, that are Real accounts (accounts of all the assets of organisation),
Personal accounts ( accounts of all associated persons with business like Debtors and Creditors)
and Nominal accounts ( accounts of all incomes and expenses). Mentioning of accounts, there
are three rules of each type of account, called Golden rules, that are followed during maintaining
and recording transactions. These rules guides recorder or accountants to undertake their job
(GORYUSHKINA and et.al., 2019). This book-keeping system have helped Elcot Park hotel and
many other business in the way that since for every transactions there are two entries in two
different accounts, in which one account is debited and the other is credited, thus in end
calculations of Balance sheet all the Debited balances and all the credited balances should match
with each other. If in any case the balances do not seem matching it means some financial errors
have occurred while maintaining records.
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5

Ledgers:
Cash a/c
DR
CR
Date Particulars J
F
Amount Date Particulars JF Amount
04/03/
20
To capital a/c 30000 05/03/2
0
By rent a/c 1000
18/03/
20
To sales a/c 20000 06/3/20 By purchase a/c 10000
20/03/
20
To sales a/c 13000 07/03/2
0
By Prepaid
insurance policy a/c
1200
11/03/2
0
By Laundry fees a/c 200
15/03/2
0
By Telephone and
internet expense a/c
2220
15/03/2
0
By Water charges
a/c
950
16/03/2
0
By Wages and
salary a/c
31/03/2
0
By balance c/d 47430
63000 63000
Capital a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
6

31/03/
20
To balance c/d 30000 04/03/2
0
By cash a/c 30000
30000 30000
Rent a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
05/03/2
0
To cash a/c 1000 31/03/2
0
By balance c/d 1000
1000 1000
Purchase/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
06/03/2
0
To cash a/c 10000 31/03/2
0
By balance c/d 40000
06/03/2
0
To vendor a/c 15000
09/03/2
0
To WH Adams Ltd
a/c
15000
40000 40000
Prepaid insurance policy a/c
DR
CR
Date Particulars J Amount Date Particulars J Amount
7

F F
07/03/2
0
To cash 1200 31/03/2
0
By balance c/d 1200
1200 1200
WH Adams Ltd a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
31/03/2
0
To balance c/d 15000 09/03/2
0
By purchase a/c 15000
15000 15000
Laundry fees a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
11/03/
20
To cash a/c 200 31/03/2
0
By balance c/d 200
200 200
Telephone and internet expense a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
8

15/03/
20
To cash a/c 2220 31/03/2
0
By balance c/d 2220
2220 2220
Water charges a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
15/03/2
0
To cash a/c 950 31/03/2
0
By balance c/d 950
950
Wages and salary a/c
DR
CR
Date Particulars J
F
Amount Date Particulars J
F
Amount
16/03/2
0
To cash a/c 1740 31/03/2
0
By balance c/d 1740
1740 1740
Sales a/c
DR
CR
Date Particulars J
F
Amount Date Particulars JF Amount
31/03/2
0
To balance c/d 33000 18/3/2
0
By cash a/c 20000
20/3/2
0
By cash a/c 13000
9