Business Toolkit: Financial and HR Management for Portobello Cafe

This report provides a comprehensive analysis of Portobello Cafe, a business operating in the hospitality industry. It begins with an introduction to financial transactions, covering source documents, recording processes, and the principles of double-entry bookkeeping. The report then demonstrates the need for accounting reports, including trial balances, and analyzes different types of costs and their impact on financial performance. Furthermore, it evaluates the importance of accurate transaction recording in line with accounting principles. The report also examines financial management's role in achieving business growth and offers recommendations. Task 2 focuses on talent acquisition and retention issues within the food and beverage sector, considering relevant legislations and the HR lifecycle. It includes the development of a performance management plan and suggestions for process improvements. The report concludes with an overview of functional roles, communication methods, and their integration within the business.

HOSPOTALITY
BUSINESS
TOOLKIT
Table of Contents

INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Introduction to the financial transactions by identifying types of source document and
recording processes of concerned business............................................................................4
1.2 Principles of double entry bookkeeping system of debits and credits..............................4
1.3 Demonstrate need for accounting report and prepare a trial balance along with its purpose
................................................................................................................................................5
1.4 Analyse types of cost and how they can be managed to influence financial performance of
business...................................................................................................................................6
1.5 Evaluate importance of accurate recording of transaction in line with accepted accounting
principles................................................................................................................................7
1.6 Critically evaluate role of financial management and monitoring in achieving positive
growth in business with some recommendations...................................................................7
TASK 2............................................................................................................................................8
2.1 Overview of the issues in talent acquisition and retention with food & beverage sector 8
2.2 Relate factors to a specific hospitality job in food and beverage sector..........................8
2.3 Identification of specific legislations that hospitality organisations has to comply. How it
reflect on employment contract and its impact on decision making......................................9
2.4 Stages of HR life cycle and importance of HR in supporting, growing and retaining talent
for a specific job role............................................................................................................10
2.5 Develop a performance management plan to support specific job role.........................10
2.6 Make recommendations on how processes and documents at each stage of HR life cycle
can be improved...................................................................................................................11
TASK 3..........................................................................................................................................12
( Covered in PPT ) ...............................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Hospitality industry is a big sector under service industry which involves event planning,
transportation, lodging, transportation, theme parks, travelling, cruise line and other fields within
tourism industry. A business toolkit is specified as a business training guide which helps in
developing a successful business within business world (Jayawardena and et. al., 2013). It
reviews common business practices and offer practical tools to overcome challenges that acts as
a barrier in business growth. For this assignment, Portobello cafe is the chosen firm which is a
thriving business enterprise, situated in Bishops gate, London. Cafe offers healthy salads and
fresh juice. This assignment will cover information regarding financial transactions, double entry
bookkeeping of credit and debit, need for accounting report and impact of cost on financial
performance of business. Beside this, issues in talent acquisition and legislations that firms have
to comply have mentioned. HR life cycle and performance management plan is also discussed.
At last, different functional roles and communication methods are specified along with way in
which different communication methods integrate different functions.
TASK 1
Portobello cafe is a new cafe launched in Bishops gate, London. Cafe specialises in
offering healthy salads, smoothies and juices to its customers. Nearby cafe, a gym is also opened
up due to which a new opportunity has emerged. To expand their business sales, manager of cafe
have decided to offer range of juice and smoothies by blending them with alcoholic spirits. This
will be a healthy alternative for peoples.
1.1 Introduction to the financial transactions by identifying types of source document and
recording processes of concerned business
Financial transaction is defined as a communication or an agreement between seller and
buyer to exchange a good in return of payment. It results in changing the financial status of two
or more individuals which are concerned with the agreement. There are various kinds of source
documents and recording processes which helps a firm in identifying their financial transactions.
In case of Portobello cafe, source documents and recording processes are mentioned below:
Source documents and recorded processes: These are specified as physical basis
according to which each business transaction is recorded. These are the evidences when financial
statements of a company are reviewed by auditors. It includes description and date of business

transactions, specific amount of money and authorised signatures. Source documents for
concerned companies are cash register tape, credit card receipt, packing slip, bank statement,
supplier invoice, time card, sales order etc. Recording processes of Portobello cafe will include
source documents, general journal, general ledger and trial balance (Kysilka and Csaba, 2013).
1.2 Principles of double entry bookkeeping system of debits and credits
Double entry bookkeeping is a system in which each business transaction is recorded
twice within a book. This financial tactics assures that the value and amount added in debit side
is equal to the amount which is specified on credit side. This system will benefit Portobello cafe
in determining their profits and expenses in a proper manner.
Principles associated with double entry bookkeeping systems:
 Each transaction includes two parties i.e. credit and debit. Every debit amount develops
credit and every credit creates corresponding debit for same amount.
 In every transaction one person is receiver and other is giver.
 Amount of capital given by receiver matches with amount of capital received by giver.
 All transactions are divided in two aspects i.e. debit and credit.
Particulars Debit Credit
Cash in hand (Overdraft) 10700
Petty cash expenses 750
Cash sales 3350
Credit card sales 14795
Free issues 575
New kitchen equipments 6540
Food purchase 7900
Beverage purchases 12970
Purchase return 200
Discount received 2300

Credit notes 190
Rent 2850
Utilities 475
Functions and events (Income) 5967
Wages 4590
Debtors 700
Till shortage 152
Total 37502 37502
1.3 Demonstrate need for accounting report and prepare a trial balance along with its purpose
Accounting report: These are the periodic statements which represents financial status
of a firm over different time periods. Portobello cafe needs accounting report to acknowledge the
details of entire business operations and transactions in an organised and clear manner.
Trial balance: It is specified as a bookkeeping worksheet that contains the balances of
all ledgers which are compiled into credit and debit account column. Total of all these
transactions are equal (Wushe, Shenje and Ndlovu, 2014). At the end of reporting period,
Portobello cafe can prepares these trial balances so that they have proper knowledge regarding
their finance and expenditures in an organised way. Usually, it is prepared on annual basis.
Particulars Debit Credit Transaction amount
Wages 16489 16489
Gifts 24000 24000
Benefits 25000 25000
Allowances 15900 15900
Weekly food shopping 26415 26415
Clothes 17809 17809

Gifts 15000 15000
Household utility bills 3678 3678
Drinks 10032 10032
Lunch purchases 8455 8455
Total 81389 81389 162778
1.4 Analyse types of cost and how they can be managed to influence financial performance of
business
While operating and managing business, a business person needs to consider different
kind of costs which are incurred during organisational processes. Costs are specified as total of
all expenses which a business owner have to face in order to produce and deliver products to its
customers. Costs associated with Portobello cafe are specified below:
 Fixed cost: These costs are not related with the quality and quantity of food. In case of
Portobello cafe, insurance, rent of place and depreciation is regarded as fixed cost.
 Variable cost: Expanses which are different for different kind of item or service are
regarded as variable cost. It include food and drinks offered by cafe, marketing
expenditures and salaries of staff employees.
 Semi-variable cost: There are some kind of expenses which are partially variable and
partially fixed. These kinds of expanses are regarded as variable costs. For example,
expenses of staff, facility rent etc.
There are different ways by which manager in Portobello cafe can manage their costs in a
desired way. Most important aspect is making an appropriate plan including all business
operations and activities. Tracking expenses will benefits in understanding previous costs and
expanses, in accordance to that new strategies can be formulated so that extra cost can be cut.
Managing variable cost properly and getting tough on fixed cost will also help (Legrand and et.
al., 2012).

1.5 Evaluate importance of accurate recording of transaction in line with accepted accounting
principles
Accounting principles: These are defined as the guidelines and rules which
organisations needs to follow while reporting their financial data. In case of Portobello cafe,
these accounting principles are specified below:
 Cost principle: Cost is defined as the amount which is spent to purchase a commodity
or service. Due to this accounting principle, asset amount of Portobello cafe will not
adjust upward for inflation. Accurate recording of transactions will benefits in
maintaining cost principles in a desired manner due to which finances and funds of cafe
will be maintained.
 Revenue recognition principle: Under this accounting principle, revenues are
recognised when the product is sold or a specific service has been formed even if actual
money is not received. Maintaining appropriate financial transactions will results in
developing an organised report of revenues. This will benefit manager in cafe to
acknowledge their profit margins and expected increments in a proper way.
1.6 Critically evaluate role of financial management and monitoring in achieving positive growth
in business with some recommendations.
Financial management and monitoring is considered as a vital aspect in business. It is
defined as organising, strategic planning, controlling, directing of financial undertaking in a firm.
It includes maintaining sufficient supply of funds for firm, assuring that shareholders will receive
beneficial returns on investments, efficient utilization of funds, monitoring if some activity
requires more funds etc. maintaining all these aspects desirably will benefits Portobello cafe in
managing their finances for different business activity or operations. Due to financial
management, capital will be used in optimal manner due to which cafe will earn high revenue
and profitability (Ivasciuc and Epuran, 2015). Increased profit margins will denotes the business
growth which was achieved by concerned business by managing their funds properly. If financial
management of company will not be efficient, then it will became very difficult for manager to
perform business activities and manage market shares. Initiating new projects will became
different and it will became impossible for company to sustain a firm position within
marketplace.

TASK 2
2.1 Overview of the issues in talent acquisition and retention with food & beverage sector
Food and beverage industry is a big field in hospitality industry. The main aim of
employees within this sector is to satisfy the needs and requirements of customers in a desired &
satisfactory manner. To achieve this, skilled and capable employees are needed. But there are
some issues which are faced by manager in Portobello cafe in hiring and retaining skilled
employees. Some of these issues are mentioned below:
 Industry trends, innovation and workplace expectation: Food and beverage industry
changes at a fast pace. Every day new dishes and flavours emerge which outdates the
previously popular dishes. Hence, every food and drinks related business outlet needs to
be versatile so that customers can enjoy new taste and flavours without compromising
with quality. For this, manager in Portobello needs to hire skilled staff but it is not
possible to hire such individuals which can adopt new styles and dishes in a single try.
Hence, it became difficult for manager in cafe to acquire right talent which can perform
well even in changing situations. Most of the customers try to new dish and every
business owner has great expectations from its staff members. But it is very difficult to
find such staff members desirably (Nayak and Taylor, 2018). This shows problems which
are faced during talent acquisition in food and beverage industry.
 Denied of leadership support: When an employee serves in a cafe or restaurant, an
appropriate guidance by leader or manager is required so that all the activities can be
carried out in a desires manner. If support of leader is there, it became easy for waiters to
satisfy the needs of customers desirably. But as changes of customers changes on a
regular basis, it is difficult for staff members and waiters to cater their needs without
manager intervention. Due to immense workload, staff in hospitality sectors has started
quitting jobs due to which it became difficult to retain employees. If manager will give
proper guidance, workload of employees will reduce and it will became easy for them to
serve customers (Anderson and et. al., 2017).
2.2 Relate factors to a specific hospitality job in food and beverage sector
HR manager in Portobello cafe wants to hire HR executive for the company. But as there
are various issues in talent acquisition and retaining of employees. This is because of some

factors like change in industry trends, workplace expectations, improper leadership support and
innovations. In the organisation these factor create impact in negative way because innovation ad
workplace exceptions are high of new employees such as they have demand of high salary
package which is not provided by the organisation and negatively influence the talent
acquisition. Leadership support is an another factor that is also negatively impacted to the talent
acquisition of reason of retention. In organisation motivational training sessions are not conduct
by companies and this the reason of employees retention.
2.3 Identification of specific legislations that hospitality organisations has to comply. How it
reflect on employment contract and its impact on decision making
There are specific laws and legislations which needs to be followed by every business
operating in hospitality sector. These laws will maintain an appropriate working environment
within the company. In relation with Portobello cafe, some specific legislations are mentioned
below:
 Liquor licensing law, 2003: Licensing act was came into force in 2003 and specifies
when where and to whom liquor and alcohol can be supplied. To sold or supply alcohol
within UK, every firm requires an authentic license. Without that, it will be illegal for
Portobello cafe to provide alcohol within their restaurant (Bruce and Stephens, 2017).
 Food safety and hygiene regulations, 1990: This law emphasize on the fact that
business owners and managers in food & beverage sector cannot offer harmful food to
the customers. Under this act, manager in Portobello cafe needs to ensure that no harmful
ingredient and species should be added to food. Also, it is essential to consider that food
must be labelled, presented and advertised in an appropriate manner.
Employment contract is a type of contract which is used in labour law in order to attribute
regulations between two parties. This contract will be carried out between employer and staff
members of Portobello cafe. Laws and legislations such as liquor licensing, food safety and
health etc. are important regulations which are needed to be adhered by every employee within a
firm. In order to comply with these laws, HR manager have specified them in employment
contracts so that each and every staff member of restaurant will have idea what are their duties
and responsibilities for firm. According to these laws, the manager of firm takes appropriate
decisions like marketing & advertising so that all the laws can be followed accordingly and firm
will gain high revenue and profitability. Not considering these laws will results in heavy

penalties and fines which can tarnish the image of restaurant within marketplace. Hence, these
laws posses considerable impact on the decision making and employee contract.
2.4 Stages of HR life cycle and importance of HR in supporting, growing and retaining talent for
a specific job role
There are different stages which are associated with HR life cycle. These stages benefits
HR manager of a firm to perform business operations in a desired manner. HR manager of
Portobello cafe is recruiting HR executive for vacant position. HR manager has advertised on
social media and website of cafe for vacant position. Different HR stages in respect with
Portobello cafe are mentioned below:
 Recruiting and on-boarding: Recruiting is a process in which new employees are hired
by a firm. It is the responsibility of HR department in portobello cafe to hire skilled and
capable staff with the help of different interviews and tests. For this, documents like job
specification, person specification, resume will help. On-boarding is defined as the
procedure of hiring a capable applicant as a new staff in Portobello cafe (Barrish, 2012).
 Orientation and career planning: In orientation, an employee is specified about their
job duties, responsibilities and other important aspects related with work. In this regard
an induction document is given to employees so that they can properly understand their
roles and responsibilities. Orientation will benefits workers in Portobello cafe to establish
strong bond with one another. In career planning, long term goals of individual and firm
are discussed.
 Career development: It is the duty of HR department in Portobello cafe to guide staff
members so that individualistic and organisational goals can be achieved in a desired
manner (Clark, 2014).
 Termination or transition: There must be some employees which wishes to switch their
job whereas there must be some workers which have planned their long term career goals
within cafe. It is the responsibility of HR department to manage document for both kind
of individuals so that entry and exit of employees can take place in an organised way.
2.5 Develop a performance management plan to support specific job role
Short role play script on topic “ When a worker behave rude with colleagues”

A performance management plan is needed by an organisation is order to manage the
performance of workforce in a desired manner. Performance management plan is very essential
so that all the operations can be performed in a desired manner.
Script one:
This kind of behaviour should not be adopted within a company:
Manager: “ Is this the manner to interact with your subordinates and colleagues?”
Employees: “ Sir, I was not planning to...”
Manager: “ Listen to what I am saying, you don't have to argue with me. If you will not
change your behaviour, company is going to take strict actions against you.”
Employees: “ Okay sir.”
Script two:
This kind of behaviour is required:
Manager: “ What was the reason behind this unaccepted behaviour?”
Employee: “ I am extremely sorry, I was wrong”.
Manager: “ You must assure that this kind of behaviour will not be faced by other
employees”
Employee: “ Sir it was because of work pressure, I will try to maintain a string and
healthy relation with my colleagues.”
2.6 Make recommendations on how processes and documents at each stage of HR life cycle can
be improved.
It is recommended to the manager in Portobello cafe that to improve the capabilities of
working staff within restaurant it is important to hire those employees which are capable to
perform well even in changing situations. Different documents such as person and job
specification will benefits HR team to acknowledge about education qualification of applicants.
But if different kinds of test such as oral, written, subjective test will be taken by HR team,
appropriately skilled candidate will be recruited (Chaperon, Coca-Stefaniak and Kennell, 2016).
Other than orientation, proper training must be given to new joined employees so that they can
perform their work desirably. It is recommended to HR team that they can organise regular
seminars so that workers can clearly understand in which direction they have to sustain their

career. For termination or transition processes, HR team of Portobello cafe needs to maintain
each and every document of staff members in an organised manner so that they can consider
properly, what these employees have learned and in which field they can denote their potential
(Mita, 2016).
TASK 3
( Covered in PPT )
CONCLUSION
From the above mentioned report, it can be concluded that hospitality is a wide industry
and incorporate various sub fields in it. When a new business is introduced, it is vital for
business owner to manage financial transactions in an appropriate manner so that
mismanagement of funds will not take place. Managing costs while performing business
activities is a crucial aspect otherwise firm have to face loss in revenues. There are different
issues which are faced in hospitality sector while recruiting and retaining employees due to over
workload. Various kinds of communication methods benefits the firm in maintaining appropriate
interaction due to which working productivity is sustained in a desirable manner.