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The Hospitality Business Toolkit Sector

University: New College Durham

  • Unit No: 5
  • Level: High school
  • Pages: 27 / Words 6821
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 292
Question :

This sample will let you know about:

  • Discuss about the principle of Double Entry Bookkeeping System.
  • Discuss about the Develop a performance management plan
Answer :
Organization Selected : Healthy Rom

INTRODUCTION

Hospitality sector conduct numerous activities that need to be managed by management so set goals and objectives can be attained easily (Chung and Chung, 2018). Hospitality industry includes hotel services, planning, lodging, theme parks, travelling, transportation and many more all this directly or indirectly attracts customers to be a part of the services. In order to raise the customer base organization need to serve goods and services according to their expectation level. In the competitive market place there are many organization who are offering hospitality services. It is successful in pulling customers towards their entrainment services because of its unique strategies adopted by the management . Healthy Rom is a new business which is located in London, UK. This new enterprise is specialist in blended juices, smoothies and salads. This assignment includes, distinguish phase of human resource life-cycle. Various ways for managing monetary and recording transaction are deeply studied in order minimise cost. Additionally, influence of lawful and moral consideration on hospitality enterprise is examined properly. However, importance of distinguish functions and their integration is determined for the attainment of best results.

ACTIVITY 1

An introduction to the financial transactions of your hospitality business by identifying the types of source documents and the recording processes you follow.

In the global market finance is the backbone of organization as with the help of this business activities can be conducted smoothly. Health Rom is a eating house that is currently launched in London and serve nutritious drinks to their targeted customers. This restaurant is providing smoothies, salads and juices by this large market share can acquired in the global market. Types of source documents identification and recording processes, document are, Cheques received , petty cash vouchers, purchase Invoice and sale invoice they are explained as under:

Cheques received: Financial transaction can be recorded with the help of cheques received from the client. By this amount of cash inflow and out flow can be recorded easily as well as management is able to take better decision in context of form's growth and development.

Petty cash vouchers: It is a small piece of paper which is used to document a payment from petty cash fund through this financial transaction can be ascertained because it provide solid evidence at the timer of reconciliation of the amount which is remaining in the petty cash fund. Management with the help of this can assure that capital in petty cash fund is not misused in any manner.

Purchase invoice: It is a written document given to buyer by its seller in order to provide payment in the specified time and also specifies the type of goods purchased. On the other hand financial transaction can be recorded by this because it proves to the management what product was purchased and how much was paid for it and what is the left amount.

Sale invoice: It is used by firm in order to communicate the client regarding their amount due in exchange for product and services which have been sold. This provide legal protection to both seller and buyer.

The cash inflow and outflow is monitored by finance manger of the company by using certain information which are stated below:

Read Also: Hospitality digital marketing

Financial transaction: Here, a agreement is carried out between buyer and seller so that payment of assets can be exchanged (Farrington and O’Gorman, 2018). It is a financial dealing that take place among purchaser and marketer so as to exchange their assets. On the other hand for Healthy Rom the monetary transaction for both buyer and seller is healthy food and accommodation for which customers are paying. Whereas, for seller is selling out the high standard healthy juices and food to their potential customers over the years. The important source document needed is bookkeeping and accounting process. This is because all these provide evidence of financial transaction conducted in the firm. Additionally, finance manger of the firm can record daily transaction which will assist them to make statement. Order assignment help from our experts!

Investigate (look into systematically) the principles of managing and monitoring financial performance of your business.

In the open market place cretin principles are adopted by Healthy Rom because they aid firm to monitor and handle their monetary presentation (Walliman, 2017). The principles of handling and motoring monetary presentation of Healthy Rom are explained as under:

Principle of risk and return: Heathy Rom is benefited by this principle because through this top level management and investors are able to take right decision on investments. It directly helps in examining risk and return of the business project which aid in handling cash amount and return on investments.

Diversity Principle: This particular principle is adopted by Healthy Rom in the global market because it directly or indirectly assist in reducing the risk level by effectively handling the portfolio. Here, organization's finance manger determine the level of threats and risk which can be raised in the coming years and formulate strong strategies in order to overcome them.

Explain the principles of double entry bookkeeping system of debits and credits, using a standard data from your operations.

Principle of Double Entry Bookkeeping System: In an organization double entry bookkeeping system is used by accountant in order to record the day to day tractions taking place in the working premises (Foris and Foris, 2018). Credit and debit is the the two base of this principle that aid in tackling all monetary related information. Double entry bookkeeping system can be calculated as,

Assets= Liabilities + Equality

Example: Blended juices and smoothies are purchased on credit from the shopkeeper. In this case, assets is debited for a specific amount and equal amount of liability is credited. It is the main principles of double entry system where one is debited and other is credited.

Produce a basic Trial balance using a sample data, stating the steps used and purpose of the Trial Balance.

Ratio

Formula

Particulars

2017

2018

Gross profit margin

Gross profit / net sales *100

Gross profit

250000

280000

 

 

Net sales

650000

700000

 

 

Gross profit margin ratio

38.46

40

 

 

 

 

 

Net profit margin ratio

Net profit / net sales *100

Net profit

30000

45000

 

 

Net sales

650000

700000

 

 

Net profit ratio

4.62

6.43

 

 

 

 

 

Mark up ratio

Gross profit / cost of goods sold *100

Gross profit

250000

280000

 

 

Cost of goods sold

400000

420000

 

 

Mark up ratio

62.50

66.67

 

 

 

 

 

Return on capital invested

Net profit / capital invested *100

Net profit

30000

45000

 

 

Capital invested

520000

565000

 

 

Return on capital invested

5.77

7.96

 

 

 

 

 

Return on assets

Net profit / total assets *100

Net profit

30000

45000

 

 

Total assets

600000

640000

 

 

Return on assets

5

7.03

 

 

 

 

 

Return on equity

Net profit / shareholder's fund *100

Net profit

30000

45000

 

 

Shareholder's equity

435000

485000

 

 

Return on equity

6.90

9.28

 

 

 

 

 

Current ratio

Current assets / current liabilities

Current assets

155000

165000

 

 

Current liabilities

80000

75000

 

 

Current ratio

1.94

2.20

 

 

 

 

 

Acid test ratio

Quick assets / current liabilities

Quick assets

65000

75000

 

 

Current liabilities

80000

75000

 

 

Acid test ratio

0.81

1

 

 

 

 

 

Debt ratio

External liabilities / internal liabilities

External liabilities

165000

155000

 

 

Internal liabilities

435000

485000

 

 

Debt ratio

0.38

0.32

Capital employed

 

 

Total assets

600000

640000

Less current liabilities

80000

75000

 

520000

565000

Trial balance and its step are illustrated as under:

Trial balance introduce as a book keeping worksheet orgeneral ledger account that are covered in ledger of the business organization. It is used by the business associates in their organization because it involves name of each nominal ledger account and value of ledger balance. By this management is able to gain productive results as compare to rivalry prevailing in the global market as well as they are capable enough to manage financial information. In the competitive market place firm prepare trial balance because it ensures that all the business activities like ledger are appropriately managed. On the other hand financial statement is formulated by using all the entries. By this chances of error is reduced to a large extent and monetary value in the company is utilized in much better way (Foster and Carver, 2018).

Trial balance of Healthy Rom by involving income and expenses are stated as under:

Particulars

31/03/18

01/04/17

Current assets

 

Cash and cash equivalents

20770

46860

Net receivables

14480

13780

Inventory

78100

75850

Other current assets

1090

16770

Total current assets

114440

153260

Long-term investments

4360

5150

Property plant and equipment

439390

483780

Goodwill

7740

7840

Intangible assets

52180

63060

Other assets

119560

97090

Total assets

737670

810180

Current liabilities

 

Accounts payable

87290

96750

Short/current debt

12530

51760

Other current liabilities

22260

22430

Total current liabilities

122080

170940

Long-term debt

162290

166340

Other liabilities

109940

106240

Minority interest

-250

-590

Total liabilities

394060

442930

Stockholders' equity

 

Common stock

40620

40620

Retained earnings

656040

661760

Treasury stock

-442630

-428390

Capital surplus

41640

41640

Other stockholder equity

-442630

-428390

Total stockholder equity

295670

315630

Net tangible assets

811810

929500

In order to formulate the trial balance certain steps need to be followed which are as under:

  • Three columns are needed for the preparation of worksheet. First column is for title, second column is for credit and the remaining is for debit.
  • All the recording are balanced systematically
  • Total of credit and debit column are done
  • After conducting all the above points compare the total of the columns.

Analyse types of cost and how they can be managed to influence the financial performance of your business and show how profit margins can be calculated using an example of your choice

Calculation of profit and loss

Balance Sheet of Paul Services as at June 30, 2016

 

 

 

 

Assets

 

 

$

$

Current Assets

 

 

 

 

Cash at Bank

 

 

 

91390

Accounts Receivable

 

 

 

30460

Supplies

 

 

 

477.5

Prepaid Insurance

 

 

 

3820

Total Current Assets (A)

 

 

 

126147.5

Fixed Assets

 

 

 

 

Furniture

 

 

 

39800

Equipment

 

 

 

77600

Store Equipment

 

 

 

115400

Automobile

 

 

 

153200

Total Fixed Assets (B)

 

 

 

386000

Total Assets [(A)+ (B) = C]

 

 

 

512147.5

 

 

 

 

 

Equity and Liabilities

 

 

 

 

Current Liabilities

 

 

 

 

Accounts Payable

 

 

 

60920

Interest Payable

 

 

 

110500

Unearned Revenue

 

 

 

11950

Total Current Liabilities (D)

 

 

 

183370

Long-Term Liabilities

 

 

 

 

Loan Payable

 

 

 

9560

Mortgage Payable

 

 

 

191200

Total Long-Term Liabilities (E)

 

 

 

200760

Total Liabilities [(D) + (E) = F]

 

 

 

384130

 

 

 

 

 

Equity

 

 

 

 

Paul's Capital

 

 

128017.5

 

Total Equity (G)

 

 

 

128017.5

Total Equity and Liabilities (F) + (G)

 

 

 

512147.5

Changes in Equity of Paul

 

Particulars

$

Paul's Capital

54341

Less: Drawings

-191

Add: Retained Earnings

73867.5

Net Paul's Capital

128017.5

Working Notes

 

 

Depreciation Adjustments

 

 

Furniture

 

47800

Less: Depreciation

 

-8000

Net Value of Furniture

 

39800

 

 

 

Equipment

 

95600

Less: Depreciation

 

-18000

Net Value of Equipment

 

77600

 

 

 

Store Equipment

 

143400

Less: Depreciation

 

-28000

Net Value of Store Equipment

 

115400

 

 

 

Automobile

 

191200

Less: Depreciation

 

-38000

Net Value of Automobile

 

153200

Discuss the importance of accurate recording of transactions in line with accepted accounting principles.

Business associates conduct Accurate recording of transaction in their working premises so that habit of recording their business transaction can be build gradually (Gibson, 2017). However, accurate recording transaction are adopted by management because it directly assist in reminding expenses and credit arises arises in a firm. As per the accounting principles there are distinguish principles which are, double entry system, going concern, revenue recognition, cost principle, full discloser and many more. All this are adopted by organization in order to record the transaction conducted in the working premises in systematic order.

Include a conclusion that critically evaluates the role of financial management and monitoring in achieving growth in your business; include your own recommendations

Finance manger in an organization plays a significant role because they are held accountable to record all day to day transaction taking place in the working premises. Along with this they monitor performance and take best decision according to the accounting principles that aid to formulate income statement. In regards of Healthy Rom monetary management plays a vital role as, designing trial balance under accounting standards, recording transaction and to make income statement so that growth of business can be carried out smoothly in the open market place.

ACTIVITY 2

A review of the different stages of the HR life cycle as applied to issues in talent acquisition and retention within the food and beverage sector.

HRM is the core task of the enterprise because they are playing distinguish role and manages all functions appropriately. In regards of Hotel Ritz there are several phase of human resource life cycle which assist food and beverages manger for retention and talent acquisition. The phase of human resource life cycle are discussed below:

Attraction: Hotel Ritz is searching manger for food and beverages that render food to clients. For this manager are using numerous sources to sources to supply information regarding the vacant post in a firm (Hur and Lee, 2017). Ritz is facing challenges while hiring the suitable nominee for the post vacant. Additionally, they stimulate applicants to apply for the post.

Recruitment: Manager of the Ritz is recruiting the manager for food and beverages department by conducting personal interview and aptitude test. This will assist company to uplift their overall profit maximization ratio tremendously. However, many issues are faced by firm when wrong applicant is placed in the vacant position. It directly impact the business set goals and objectives because they are not attained in the specified timer frame.

On- boarding: Here, in this particular stage manager of food and beverage who has been selected by the HR of the company gets indulged in the business related activities. Due to which selected applicant is able to capture the roles and responsibilities easily and better results can be given by them. Organization is facing another problem associated to training and skills of workers. They are not acknowledged from culture and activities of business so they resist to work better.

Enablement: Rtiz management conduct this in the working premises as it provide information to new employees through question and answer sessions, presentation, programs and many more. Whereas, organization adopts event programs in that manger of food and beverages illustrates their roles and responsibilities so that vision of firm can be accomplished. The productivity level of workers reduces when the roles and duties are not clear to them. Hence, recruited employee is given proper training and health working environment so that they can feel more connected with the work and the premises.

Development: Hotel Ritz adopt this in their working premises in order to ascertain the better career options of food and beverages manager (Kimbell and Blomberg, 2017). It can be done by involving them in business activities so that their professional skills can be improved gradually and more knowledge can be enhanced. As management is abler to prove less growth career growth opportunity employee turn out ratio is raises which is influencing the performance of the business. To cope up with the competitors it is important to render career opportunity so that skilled and competent staff members can be hold back over the years.

Retention: Management of Ritz adopts various strategy to retain the manager of food and beverages department. Organization timely monitor their performance and apprise them for their best performance by this they are encouraged to perform best(Phillips and Schegg, 2017). Employees turn out ratio raises when they are not given incentives and benefits for their hard work. So, it is very essential to provide them benefits so that they can retained back in the firm over the years.

Separation: It is used by Ritz in order to handle the separation and transition of co-workers by formulating strategic plans appropriately. It is widely implemented in the working premises so as to handle workers and their separation. By this business can be operated smoothly in the intense competitive world. Exit interview should be conducted so that reason of leaving the firm can be better understood and improvements can be done easily.

Recommendations: HR life cycle assist Hotel Ritz to hire deserving applicant for the vacant position. Along with this they provide career growth and appreciate workers for their hard work in order to hold back them in the premises. By doing so set goals and objectives can be attained easily.

Evaluate each stage of the HR life cycle and the importance HR plays in supporting, growing and retaining talent as applied to the specific job role.

Human Resource life cycle is essential for the organization because it assist in discovering right candidate for the vacant post (Korzh and Onyshchuk, 2018). Through this issues are resolved easily which are faced by the management in the open market place. HR Life cycle is beneficial for Hotel Ritz as it directly help in discovering the vacant position of food and beverages manager, provide training, give approval for their best performance, recruiting and so on. By this huge profits can be gained in the global market as compare to competitors. Additionally, it aid in improving their skills which will help staff members to perform their job role more accurately. Need Assignment Samples?Talk to our Experts!

The value of HR for supporting, developing and holding back talent is elaborated as under:

  • HR manger adopts development and retention stage because it provide benefits that leads to growing, retaining and supporting the workers in the working premises.
  • Appropriate policies need to be designed by the management in order to attract suitable applicant for the vacant post.
  • Recruitment process is adopted by Ritz because it saves time and cost of the HR by posting advertisement on social media platform.

Develop a performance management plan to support the specific job role

PMP is designed by the form in order to monitor the performance so that productive results can be attained. HR manger of Ritz is preparing PMP for manager of food and beverage department (Pearce,and Zare, 2017). The plan is explained as under:

Plan

Monitor

Review

Hotel Ritz manager need to set priorities of food and beverages so that emerging needs of the customers can be meet. They provide complete training and support employees so that work can be accomplished in the set deadline.

Here, manger interact with food and beverages department and come up with solution for their problem which they are facing while conducting the activities. Performance of employees is measured and appropriate solution are given to them.

Ritz manger study the feedback and frame tactics to resolve the loop holes so that set goals and objectives can be attained easily (Manning, 2018).

Make valid judgments and suggestions on how processes and documents at each level of the Human Resource life cycle can be enhanced.

Suggestions:

  • Human resource life cycle can be improved through the process of recruitment.
  • By educating the employer and employees process and documents at each level of Human Resource life cycle can be enhanced.
  • The another way to upgrade the process of Human Resource Life Cycle is through motivation. By encouraging team members towards change process and documents at each level of Human Resource can be improved easily. Don't worry get assignment help london from UK's leading assignment helpers.

ACTIVITY 3

Identify specific legislation(s) that hospitality organizations has to comply and adhere to, in the daily transaction of business using examples to explain where applicable

Hotel Ritz adopts various legislation in their working premises which are illustrated as under:

Minimum wages Act, 1998: All food and beverages in Hotel Ritz are getting minimum wages that is decided by the governing bodies which promotes employee engagement. By this employees are hold back at the work place over the years. Examples: Ritz is giving minimum salary to all its employees who are working in the company in any department.

Read more - Project Management Analysis

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