Financial Analysis and Reporting for Hotelplan Holding Limited

This report provides a comprehensive analysis of the financial accounting practices of Hotelplan Holding Limited. It explores the use of management accounting information as a decision-making tool, examining how financial ratios, budget forecasts, and variance analysis contribute to assessing performance and making informed business decisions. The report highlights how these tools are used to evaluate profitability, set prices, and manage costs. Furthermore, it discusses the importance of budgeting in forecasting future financial positions and the role of variance analysis in identifying and correcting deviations from planned financial targets. The report also touches upon cost accounting and its significance in controlling expenditures. Overall, the report aims to provide insights into how Hotelplan Holding Limited utilizes financial information to improve its financial performance and strategic planning. The report has been contributed by a student and is available on Desklib.

Finance and Funding in the Travel and Tourism Sector: TASK 2
2.1 Different types of Management Accounting Information are
Management Accounting Information is used a decision
making process for internal managers of Hotelplan Holding Limited to
take some major decisions using available data and information.
It can be in the form of Financial Ratios, Budget forecasts,
Variance Analysis etc. Financial Ratios can be used to know the
profitability of the company and various ratios can also be interpreted
from those ratios and also trend analysis can also be done through past
revenues, sales and growth.
Budgeting helps Hotelplan Holding Limited in making
estimates about the future costs and liabilities. It also helps in setting
up budgets for each department to analyse profits separately for each
department and identify which department is giving higher profits.
Variance Analysis helps Hotelplan Holding Limited in
comparing the actual budget with standard budget and if there are any
variations than they should be examined and corrected. Variances
which are over budgeted are to be taken action so that there should not
be any variances left. Cost Accounting is the accounting in which
accounts are made to analyse the extra cost occurred and there are no
profits earned from those extra spending of the expenditure.
2.2 Use of management accounting information as a decision making
tool
 By doing assessment of final accounts manager of Hotelplan
Holding Limited can assess trends with regards to financial
performance. In other words, FA analysis helps company in
identifying whether its performance improved or deteriorated
over the time frame or not. Referring this, firm can take suitable
decisions and thereby would become able to get competitive
advantage.
 Management Accounting Information also helps company
management in knowing what should be sold and what will be
the price of the product. Hence, it helps company in setting
appropriate prices of the services offered.
 Using budget related information manager of Hotelplan
Holding Limited can develop competent plan for the upcoming
time period. As it helps in assessing financial position with
regards to the upcoming time frame. Further, budget also gives
input for making evaluation of departmental performance in the
context of financial aspects.
 Variance analysis tool assists Hotelplan Holding Limited in
knowing the deficiencies between the actual costs and standard
costs. They also helps in understanding the causes for the
deviation assessed. Referring this, corrective measures can be
taken for improvement purpose.
Variance AnalysisBudgetingFinancial statement analysis