Reflective Writing

Reflective Writing

Introduction

The basic knowledge of financial terms and techniques is significant for the managers and owners of the business. Before starting a new business or a launching a new project, finance managers and the top management of the company develop a concrete business plan, that forecasts all the relevant costs and expenses, and the expected outcomes. In hotel management and hospitality industry, the costing and pricing is a difficult job. Which requires all in-depth knowledge of all the external factors that influence the sales and the prices.

Furthermore, the hotel management professionals are required to have handy knowledge regarding how to calculate the expenses, how to forecast sales, and how to calculate the profit of the business. Being a student of Hotel Management, I learned several useful techniques during this course. It will help me to handle the day to day operations and control the extra costs, which will ultimately raise the profit of the business. During this semester my learning outcomes included these topics management control system, stockholders values, balanced scorecard method of performance appraisal, financial performances management, pricing, cash flow statement and accounting equations to reduce the chances fraud (Amirudin et al., 2017). These techniques are essential for every business to take proper decisions in every situation.

Discussion

In the first week, I learned the management control systems, which helped me how to formulate the overall strategy of the business. It includes the mission and vision statement of the business. The mission statement defines the boundaries of the business, while the vision is the long term goals and objectives a business sets to achieve in future (Mitreva, 2018, 753). In the hotel industry the scope of products and services are broad, and sometimes it deviates the attention of the owners and top management from their core objectives. The mission statement restricts the management to confined to their main functions and objectives to achieve a competitive edge in their primary products and services (Shkurkin, 2016, p.103).

Similarly, after studying this subject, I learned how to set the objectives and strategies for the business. Objectives of the organisation state what the organisation want to achieve in a specific period. While the strategies refer to the set of actions, how to achieve these objectives, strategies are the action plans that a business takes to achieve their short term objectives. For instance, the objectives of a hotel are to earn 1 million in a season, and the strategies are set how to earn that much amount, so the advertisement campaign, prices, different offers and distinguished services are the strategies that help to earn 1 million during the financial year. For achievement of forecasted profit it is necessary to know about the budgeting techniques, pricing techniques, and the cash flow statement.

The budgeting techniques give us information regarding the earnings from the project and how long it takes to pay back the initial investment with the future value of money. The forecasting of future earnings is done through the budgeting techniques, and however, in most cases, the actual results are different from forecasted values, that is called the variance. The difference between the actual and forecasted outcomes depends upon the prices of raw materials, the overhead costs, and the efficiency of labours. In my views, it is the role of a manager to control these costs through proper, efficient management. The performance of the employees could be measured through the balanced scorecard method. There are many techniques used by the organisations to measure and evaluate the performance of their people and processes. However, Balanced Scorecard is the most efficient technique because it measures the performance from various aspects of the business (Bontis, 2015, p.1370). Such as, from the customer perspective that how much the customers are satisfied with our products or services. Then we check the performance of a person through financial perspective if the business is earning and paying back to its shareholders a handsome amount of dividend so the business would be considered as successful. The third perspective of this method is the internal business process, and it means the level of efficiency and smooth flow of the business activities inside the organisation. Finally, it measures the learning and growth of the employees within the organisation.

Moreover, the manager also use the different management functions and tactics to reduce the chances of loss through internal control. The internal control includes a different set of actions a manager has to take to ensure the smooth flow of all activities. The major internal control principals are a proper audit of the organization, and the audit could be done through internal auditor and the external audit firm to fix any fraudulent activities. Job rotation, control the access of unauthorised persons to use the computer software, safety and security of the confidential documents of the organisation, insurance of the valuable assets, and the restriction of unnecessary use of the resources. During this course, I learned the pricing technique and the bottom-up pricing technique. I learned how to create the income statement and the use of a bottom-up technique in the income statement.

I learned about the cash flow statement, and the effects of different operations, expenses, and the investments on the inflow and outflow of cash during the year (Kizildag, 2015, p.1951). I believe that the cash flow statement is significant for the manager, and after a certain interval, they have to check the cash flow either it is positive or negative. Similarly, I learned the accounting equations which are interesting techniques and provide the day to day information regarding the business operations. The balance sheet gives information about the total worth of the business (Hughes, 2016, p.61). I learned how to create the balance sheet and how to take a decision regarding the short term and long term liabilities.

Moreover, the ledger accounts, general journals, trial balance, and income statements are the fundamental techniques that a manager or the owner of the hotel or another sector of hospitality industry must know to avoid the fraudulent activities in the business. During the semester I learned about the cash budgeting which helps me to how to control the day-to-day cash, and how to utilise the excess liquid, what should be done in case of the shortage of the cash. Cash budgeting helps to reduce the chances of fraud, and even it can reduce the possibility of fraud to zero (Dogru and Sirakaya-Turk, 2017, p.29).

The most important topic in my view is the responsibility accounting which defines the roles and tasks assigned to different managers. The responsibility accounting includes the organisations organogram and the roles associated with each position. It provides details about the processes in the organisation. Including the details about the inputs (Raw materials, or the services provided by each employee), and the costs of these resources (Ali et al., 2018, p.518). Then the processing of the inputs which requires the working capital and the overhead costs to transform it into meaningful outputs that creates value for the customers. In the hotel management, for instance, the input could be the range of services provided by different employees, processing could include the service provided by the staff to the client. While the outputs are the satisfaction of the client by availing the service, and how efficiently the employee delivered these services.

Conclusion

I learned all these techniques during the semester, through the theoretical and practical assignments, quizzes, analysis of the financial reports of the multinational companies. It will help me in my own business set up to create a proper business plan and get financial assistance from the bank. Further, I need to learn the accounting software to calculate and develop these statements with high accuracy. This software is widely used in all organisations of the hospitality industry.

References

Dogru, T. and Sirakaya-Turk, E., 2017. The value of cash holdings in hotel firms.International Journal of Hospitality Management,65, pp.20-28.

Amirudin, N.R., Nawawi, A., Salin, P. and Azlin, A.S., 2017. Risk Management Practices in Tourism Industry-A Case Study of Resort Management.Management Accounting Review,16(1).

Bontis, N., Janoaevi, S. and Denopoljac, V., 2015. Intellectual capital in Serbia s hotel industry.International Journal of Contemporary Hospitality Management,27(6), pp.1365-1384.

Kizildag, M., 2015. Financial leverage phenomenon in hospitality industry sub-sector portfolios International Journal of Contemporary Hospitality Management,27(8), pp.1949-1978.

Mitreva, E., Sazdova, J. and Gjorshevski, H., 2018. Management with the Quality Control System in the Hotel Industry in Macedonia.Tem Journal,7(4), pp.750-757.

Mitreva, E., Sazdova, J. and Gjorshevski, H., 2018. Management with the Quality Control System in the Hotel Industry in Macedonia.Tem Journal,7(4), pp.750-757.

Shkurkin, D.V., Sogacheva, O.V., Logvencheva, E.S. and Khramova, M.N., 2016. Modernisation of the sphere of tourism and hospitality industry of the south of Russia as a growth factor of socio-economic stability of the region. International Journal of Economics and Financial Issues,6(1S), pp.101-106.

Hughes, M., 2016. Matrix Accounting Illustrated Contribution Margin.Journal of Corporate Accounting Finance,27(5), pp.59-65.

Ali, F., Rasoolimanesh, S.M., Sarstedt, M., Ringle, C.M. and Ryu, K., 2018. An assessment of the use of partial least squar-./4568JKz @

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Finance, Accounting And Banking PAGE 8

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