Premier Inn: Financial Transactions, HR Practices, & Compliance Report

This report provides a comprehensive analysis of Premier Inn's hospitality business, covering financial transactions, HR practices, and legal compliance. It details the accounting cycle, principles of financial management, and double-entry bookkeeping. The report also explores HR life cycle stages, performance management plans, and strategies for talent acquisition and retention. Furthermore, it discusses the legalities that Premier Inn must adhere to, the impact of employment laws on business decisions, organizational structure, communication methods, and the importance of integration and coordination within the organization. The report emphasizes accurate recording of transactions and provides examples to illustrate key concepts. Desklib provides this and other solved assignments for students.

The Hospitality
Business

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
Financial transactions of Hospitality business by identifying source documents and recording
processes that are followed by Premier Inn by use of accounting cycle diagram which is as
follows-...................................................................................................................................1
The principles of managing and monitoring the financial performance of Premier Inn........2
The principles of Double entry Bookkeeping system of Debit and Credits with the help of
standard data from your operations........................................................................................3
The analysis of Trial Balance using a sample data of sales and purchase transactions, stating
steps to propose Trial Balance................................................................................................8
Analysis of the types of costs and ways their influence can be managed upon the financial
performance of Premier Inn with the help of example...........................................................8
Discuss the importance of accurate recording of transactions in line with accepted accounting
principles................................................................................................................................9
TASK 2............................................................................................................................................9
The different life cycles of HR Practices that are required to solve the issues of talent
acquisition and employee retention in Premier Inn................................................................9
Developing a performance management plan to support specific job role..........................10
How the processes in the stages of HR life cycle can be improved with the help of specific
examples...............................................................................................................................11
Legalities that the hospitality management organisations like Premier inn need to comply and
adhere to carry their business with the help of examples.....................................................11
The impacts of company's employment and contract laws on the decision making of business
..............................................................................................................................................12
Organisational chart that demonstrates the interrelation between the various functions of
hospitality sector...................................................................................................................13
Different communication methods and levels within a business organisation ....................13
Review of integration and coordination within an organisation with the use of examples..14

Effectiveness of different communication methods, integration and monitoring within a
specific department to achieve organisational objectives and strengthen values.................14
CONCLUSION..............................................................................................................................15
REFERENCES .............................................................................................................................16

INTRODUCTION
Hospitality business is a broad concept that is linked to the service sector that consists of
restaurants, event planning, tourism, hotels, bars, theme park, etc. Premier Inn is among the
largest British hospitality business which was established in 1987 and is headquartered at
Dunstable, England, UK. The report will cover the HR strategies, the functions that are of legal
and ethical terms, which are important for coordinating the different areas of functions of
Premier Inn. It will demonstrate stages of HR life cycle, performance management plan to
support the specific job role and how these stages can be improved. Moreover, the report will
illustrate how company's employment laws impact business and various functional roles within
the hospitality sector and communication methods used in the organisation. Further, it will
analyse coordination and integration, along with different communication methods to achieve
coordination for the achievement of organisational objectives.
TASK 1
Financial transactions of Hospitality business by identifying source documents and recording
processes that are followed by Premier Inn by use of accounting cycle diagram which is as
follows-
1

Source documents are the business forms that consists of all the finical transactions of the
business from buying the smallest of things to the huge investments. It includes business
transactions of purchase/sales, receipts and invoices of payments or receipts (Naisola Ruiter,
2021). The main structure of the source documents and recording process of Premier Inn
involves, Journals, posting it to Ledger, Trial balance, balance sheet and the final accounts. The
company uses advance technology for calculations and preparation of its books of accounts.
Premier Inn utilises computerised accounting to record all journal transactions chronologically
and calculate their sales. The company performs Journal entries consisting of date, particulars,
ledgers, debits and credits and additional notes linked to the reference numbers in the books.
The principles of managing and monitoring the financial performance of Premier Inn
The activities of the business are very important and keeping a record of these statements
and activities preformed by the company is also important. The management of finance is
essential for the business because it helps in gliding the business without hindrances (AlNuaimi,
Khan and Ajmal, 2021). The business operations of Premier Inn incur financial transaction on
daily basis and keeping an record of these transactions is mandatory for the organisation to keep
a track of its performance and keep themselves on secure side of laws. The main principles
governing the financial performance of Premier Inn are elaborated below- Allocation of funds: The finance teams should focus on properly allocating the finance of
the business according to the requirements of the daily activities. The budgets should be
prepared by the finance teams in such a manner that should look and be realistic in
approach. Proper Documentation: The preparation of accounts should be followed by proper
preparation of journal, ledger accounts, trial balance, balance sheet and books of final
accounts. The expenses and incomes should be clearly mentioned and every transaction
in the final accounts should be properly backed by clear accounts and entries.
 Avoiding unfair practices in preparation of the accounts: The unfair practices should be
avoided by Premier Inn while preparing their accounts and finances. The finance team
should avoid window dressing, which is a ill practice performed by many organisation to
falsely create certain transactions to gain profits (Nayak and Taylor, 2018). This types of
false practices are considered severe legal offence and the companies who does so may
be sealed.
2

The principles of Double entry Bookkeeping system of Debit and Credits with the help of
standard data from your operations
Journal entries
3

Ledger accounts
4

5

6

7

The analysis of Trial Balance using a sample data of sales and purchase transactions, stating
steps to propose Trial Balance
Analysis of the types of costs and ways their influence can be managed upon the financial
performance of Premier Inn with the help of example
The types of costs in the hotel service industry involves many costs related to the day to
day transactions. The hospitality services are continuous and works for 24/7 which means the
activities needs to be maintained and recorded all the times (Jasnoff and Sheikh, 2019). The
company also incurs expenses on continuous basis which include rent for their stores, Taxes,
beverage, raw materials, water and electricity, telephone bills, food and beverages. The costs can
be reduced by properly planning the costs incurred on these items and reducing the wastage.
8

Discuss the importance of accurate recording of transactions in line with accepted accounting
principles
The recording of financial transactions is one of the core element of a business firm
where transactions in monetary terms are executed on a regular basis. To manage the record of
transactions and asses the financial position of a company, it is very important for Premier Inn to
maintain proper financial statements on a regular basis (Wang, Wang and Wang, 2022). In
context to Premier Inn, the accurate recording of transactions in order to comply with accounting
principles: Revenue recognition principle: According to the accrual concept, the business is suppose
to record revenues in the year in which they are earned rather than the year in which they
are received. Cost principle: This principle states that assets are required to be recorded at acquisition
price and proper depreciation is to be charged (Maffei, Casciello and Meucci, 2021). Matching principle: Expenses and revenues of the same accounting period should be
identified and matched in the year of their occurrence. Full disclosure principles: The accuracy of financial statements should be ensured and
wrong information regarding assets and liabilities should be avoided so that the outsiders
could have access to correct financial position of the business.
 Objectivity principle: This principle states that financial statements should not be biased
and are prepared without considering personal views(Sorin and Sivarajah, 2021).
TASK 2
The different life cycles of HR Practices that are required to solve the issues of talent acquisition
and employee retention in Premier Inn
The life cycle of HR practices include a long chain of activities that are interconnected to
each other. The HR practice include interpretation of business strategy, HR strategy,
organisational design, job design/team design/ departmentalisation, HR planning, vision/culture,
recruitment and selection, on-boarding and induction, assessment and appraisal, training &
development, engagement and reward, career growth and then retirement (Qin, 2021). The HR
9