Question

(Hospitality accounting)

Discuss in detail spme of the comprehensive financial responsibilities for hospitality managers. They can be managers at the front desk, a restaurant or in the casino (only one department) to focus on. Give examples of how to stay within departmental budgets, how to control for over-time, and unexpected expenses that can come up in the department.

Answer 1

Financial Resoponsibilty refers to the process of managing money and the other similar assets in a way that is considered productive and is also in the best interest of the individual or a business company.Some of the financial responsibility for hospitality managers are:

1.Managing Budget: There can’t be a business to run if the money isn’t there. Whatever the business is managing any hospitality operation is complex position that requires overseeing several departments within its organisation.

2. Controlling Expenditures: Every department with a hospitality organisation has a need. Even with the most generous budget, all financial needs cannot always be met. However if there weren’t a hospitality manager to oversee these most operations would go bankrupt.The hospitality manager needs to be aware of all expenses. Even though they have already allocated a set budget . They also need to know how each department is spending their allowance.

3. Financial Planning: Financial Planning starts with sales forecast. The sales forecast is used to establish the revenue for the budget. To take control over expenses the needs to be a control sheet for operational manager or base sheet to which comparison can be done and taken control over for which financial planning is necessary step.

4.Pricing: Pricing of goods and services is one more financial responsibility of hospitality managers. It is important for any manager to take decision on pricing strategy as pricing is the reason for revenue and profit in the business . Therefore pricing is also important financial responsibility of hospitality managers.

5.Relevant Costing: Expansion planning in terms of increasing any foood outlet or to add any service like spa or private pools. Also to determine whether its profitable to operate any particular segment of the industry or not.