Question

Discuss some of the various financial position found in most hotels. What does the employee do? How does their work contribute to the hotels overall success? (400 words required this sucject is hospitality accounting Please write clear your own thought or search the internet. Thank you!)

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Answer 1

Definition of financial position: The status of assets , liabilities and owners equity is called as Financial Position.'

Hotel accounting is one part of accounting practise in hospitality industry.

The accounting for hotels is done on a consolidation basis from many number of departments unlike conventional accounting practices. However the financial statements does not differ from other industry's financial statements.

The financial position in hotels can be understood by ratio analysis from the data extracted from financial statements.

The major tools for comparision of finacial position are Liquidity ratio and Solvency ratio.

Solvency refers to companys's capability to pay short term liabilities. A solvent company can be defined as the one that owns more than what it owes i.e., it is having positive net worth. On the other hand a high liquidity company means a company which has adequate cash to meet its obligations.

Examples of Liquidity ratios are:

Current Ratio = cuurent Assets/Current liabilities

Quick ratio or acid test ratio = [Current assets - Inventories] / [Current liabilities]

Examples of solvency ratios are:

Debt equity ratio = Debt/equity

Interest Coverage ratio = Operating Income / Interest Expense.

With the help of these ratios one can establish and assess the financial position of company in any industry.

So the various types of financial position would be:

Hotel with high liquidity ratio and also high debt equity ratio.

Hotel with very less solvency ratio and high quick ratio.

A lot many combinations of financial positions can occur and we can understand such financial position with the help of Liquidity and solvency ratios.

What does an employee in a hotel do?

There are different cadres of employees in a hotel such as:

Concierge: He/She directly interacts with customers providing them with various services

Event Planner: He/She arranges the events and make sure it is run smoothly.

Front desk clerk: They check in or check out the guests and answer their questions or concerns.

Executive chef: He/She supervises all cooks, Kitchen employees.

General Manager: He/She make sure that everything is running smmothly in the hotel and also as per hotel norms.

Housekeeper:They typically clean hotel rooms and also other common areas.

Porter:They are also called bellhops who handle baggage for guests.

Valet: Those who are involved in parking and retreiving the vehicles of guests.

These are the various types of employees in a hotel who collectively work towards attaining a good and decent financial position.

How does employee's work contribute to the hotels overall success?

The employees of any company in hospitality industry requires the following five characteristics:

1. Commitment

2. Interpersonal Skills

3. Problem solving

4. Teamwork

5. Flexibility

If all the employees are having these characteristics then eventually the hotel wiil succeed. Therefore even a low job profile worker is also a factor for the success of the hotel. Each and every employee has to treat their customer with repect and satisfy the customer because he is our boss. Employee's work help in creating a brand name for a hotel and customer loyalty and thus ultimately resulting into success of the hotel.

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