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Accounting Information for Planning - Forecasting in the Hospitality Industry

Hospitality managers working in restaurants and hotels simply must be able to accurately
predict the number of guests they will serve as well as when those guests will arrive. If they
cannot, guest service levels or profits will surely suffer. In this article you will learn how
hospitality managers forecast business revenues so they can carefully plan to maximize
guest satisfaction.
It has been said that average managers know what has happened in their operations
in the past and good managers know what is currently happening in their operations.

Investment decision making

1 How the accounting rate of return, payback, net
present value and internal rate of return
investment appraisal techniques can be applied
2 The relative merits of these investment appraisal techniques
3 What is meant by the ‘time value of money’
4 How the present value of a cash flow occurring in
the future can be determined using discounting tables.

Introduction
This topic focuses on analytical methods that can be used to assess the merit of
long-term investment proposals. The process of rationing funds to long-term

Internal Control of Payroll

1. Discuss the objectives of internal control for payroll.
2. Compute and record the payroll for a pay period.
3. Compute and record tips under the 8 percent tip regulation.
4. Describe and record employer payroll taxes.
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PAYROLL DEFINED
The term payroll pertains to both salaries and wages. Managerial, administrative,
and sales personnel are generally paid salaries. Salaries are often expressed

Hospitality Industry Accounting

Hospitality is one of the world’s most exciting and rewarding industries. If you choose
it for your career, you will select from a wide variety of employers, locations, and daily
job activities that can lead to your success and personal satisfaction. In this article,
you will review some important ways in which the hospitality industry is unique. You
will also learn the definition of accounting and how accounting helps managers like you
use financial information to make good decisions. As you learn that there are several

Budgeting and Internal Controls - Accounting Information for Planning

In most operations, the manager is responsible for preparing and maintaining a budget.
The budget, or financial plan, simply details the expectations of an operation’s owners and
managers for a specific period of time. In this article you will learn about the variety
of ways hospitality managers utilize budgets and the budgeting process to better operate
their businesses. In fact, as you will discover, managers most often prepare not one, but
several types of budgets. You will learn about the various types of budgets most hospitality

Inventories, Cost Calculations, and Internal Controls

1. Describe the steps in determining inventory quantities.
2. Prepare the entries for purchases and sales of inventory under a periodic inventory system.
3. Determine cost of goods sold under a periodic inventory system.
4. Identify the unique features of the income statement for a merchandiser using a periodic
inventory system.
5. Explain the basis of accounting for inventories, and describe the inventory cost flow methods.
6. Explain the financial statement and tax effects of each of the inventory cost flow methods.

Accounting Fundamentals Review

This article is a review of some accounting fundamentals that must be understood before
you can begin to actually study managerial accounting. It can be helpful even if you have
recently completed one or more introductions to accounting courses. The article presents
and explains in detail the basic accounting formula, credits and debits, and generally
accepted accounting principles (GAAP). The article concludes with a brief review of how
accounting is used in the hospitality business cycle. When you have successfully finished

Capital Investment, Leasing, and Taxation

Many individuals, including experienced managerial accountants, aspire to own their own
hospitality businesses. The ownership of a restaurant or hotel holds for many the promise
of a greater sense of personal accomplishment, increased control over their own work lives,
and most important for some, the promise of greater financial reward than that which
could normally be achieved by managing a business for others.
As many current (as well as many former!) owners in the hospitality industry are well

Accounting for Receivables and Payables

1. Identify the different types of receivables.
2. Explain how accounts receivable are recognized in the accounts.
3. Distinguish between the methods and bases used to value accounts receivable.
4. Describe the entries to record the disposition of accounts receivable.
5. Explain why credit policies are needed in the hospitality industry.
6. Compute the maturity date of and interest on notes receivable.
7. Explain how notes receivable are recognized in the accounts.
8. Describe how notes receivable are valued.

Hospitality Accounting In Action

1. Explain what accounting is.
2. Identify the users and uses of accounting.
3. Understand why ethics is a fundamental business concept.
4. Explain the meaning of generally accepted accounting principles and the cost principle.
5. Explain the meaning of the monetary unit assumption and the economic entity assumption.
6. State the basic accounting equation, and explain the meaning of assets, liabilities,
and stockholders’ equity.
7. Analyze the effects of business transactions on the basic accounting equation.