Chapter 01

7/21/2019 Chapter 01

1/25

1 2009 John Wiley & Sons Hoboken, NJ 07030

Managerial Accounting for the Hospitality IndustryDopson & Hayes

Chapter 1Chapter 1

Hospitality IndustryHospitality Industry

AccountingAccounting

7/21/2019 Chapter 01

2/25



Chapter OutlineChapter Outline

Unique Aspects of the Hospitality Industry

The Purpose of Accounting in the Hospitality Industry

Branches of Accounting

Why Hospitality anagers Use anagerial Accounting The Unifor! "yste! of Accounts

#thics and Hospitality Accounting

The Blue $agoon Water Par% &esort' A Case "tudy

(oshua)s &estaurant

7/21/2019 Chapter 01

3/25

* 2009 John Wiley & Sons Hoboken, NJ 07030


$earning Outco!es$earning Outco!es

#+plain the pri!ary purpose of accounting and each ofthe fi,e -ranches of accounting.

#+plain /hy !anagerial accounting in the hospitalityindustry is different fro! !anagerial accounting used inother industries.

&ecogni0e the Unifor! "yste!s of Accountsappropriate for the hospitality -usiness you !anage.

&ecogni0e your ethical responsi-ilities as a !anagerialaccountant in the hospitality industry.

7/21/2019 Chapter 01

4/25

2009 John Wiley & Sons Hoboken, NJ 07030


Unique Aspects of theUnique Aspects of the


Within the lodging and food ser,ices industries are a,ariety of related fields. Hotels restaurants clu-s resorts casinos cruise

ships the!e par%s The recreation and leisure !ar%et The con,ention center !ar%et The education !ar%et

The -usiness dining !ar%et The health care !ar%et The corrections !ar%et

7/21/2019 Chapter 01

5/25



The Purpose of Accounting in theThe Purpose of Accounting in the


Accounting is the process of recording financialtransactions su!!ari0ing the! and then accuratelyreporting the!.

An accountant is a person s%illed in the recording andreporting of financial transactions.

Accounting in the hospitality industry is utili0ed e,eryti!e a guest purchases food -e,erages or a hotelguest roo!.

7/21/2019 Chapter 01

6/25



The Purpose of Accounting in theThe Purpose of Accounting in the


Creditors /ant to %no/ a-out the proposed -usiness)sesti!ated financial perfor!ance -efore they decide tolend it !oney.

O/ners of a hospitality facility /ant to !onitor their-usiness5s financial condition.

In,estors /ant to put their !oney in -usinesses that /illconser,e or increase their /ealth.

anagers use accounting techniques as /ell as theireducation e+perience ,alues and goals to !a%e!anage!ent decisions.

7/21/2019 Chapter 01

7/256



7inancial Accounting7inancial Accounting

7inancialaccounting includes recording su!!ari0ingand reporting financial transactions.

7inancial transactions include'

&e,enue the ter! used to indicate the !oney you

ta%e in #+pense the cost of the ite!s required to operate the

-usiness

Profit the dollars that re!ain after all e+penses ha,e

-een paid

7/21/2019 Chapter 01

8/258



7inancial Accounting7inancial Accounting

7inancial accounting also includes accounting for

Assets /hich are those ite!s o/ned -y the -usiness

$ia-ilities /hich are the a!ounts the -usiness o/es

to others O/ners) equity /hich is the residual clai!s o/ners

ha,e on their assets or the a!ount left o,er in a-usiness after su-tracting its lia-ilities fro! its assets.

7/21/2019 Chapter 01

9/25



Cost AccountingCost Accounting

Cost accounting is concerned /ith the classificationrecording and reporting of -usiness e+penses.

7or cost accountants a cost or e+penseis !ost often

defined as :ti!e or resources e+pended -y the-usiness.;

Cost accountants deter!ine costs -y depart!ents -y-usiness function or area of responsi-ility and -y theproducts and ser,ices sold -y the -usiness.

7/21/2019 Chapter 01

10/25

1< 2009 John Wiley & Sons Hoboken, NJ 07030


Ta+ AccountingTa+ Accounting

A ta+ is si!ply a charge le,ied -y a go,ern!ental uniton inco!e consu!ption /ealth or other -asis.

Ta+ accounting concerns itself /ith the proper andti!ely filing of ta+ pay!ents for!s or other required

docu!ents /ith the go,ern!ental units that assessta+es.

Professional ta+ accounting techniques and practicesensure that -usinesses properly fulfill their legiti!ate ta+o-ligations.

"o!e of the ta+es hospitality !anagers !ay -eresponsi-le for include occupancy ta+es sales ta+esand payroll ta+es.

7/21/2019 Chapter 01

11/25



AuditingAuditing

The auditing -ranch of accounting is chiefly concerned/ith the accuracy and truthfulness of financial reports. An audit is an independent ,erification of financial records. The total collapse of the #nron Corporation in late 2

7/21/2019 Chapter 01

12/25



AuditingAuditing

Indi,iduals /ho are directly e!ployed -y a co!pany toe+a!ine that co!pany)s o/n accounting proceduresare called internal auditors.

#+ternal auditors are indi,iduals or fir!s /ho are hiredspecifically to gi,e an independent >e+ternal@

assess!ent of a co!pany)s co!pliance /ithstandardi0ed accounting practices.

In larger hotels the controller /ho is the personresponsi-le for !anaging the hotel)s accountingprocesses !ay ser,e as the auditor.

In ,ery large properties full=ti!e indi,iduals aree!ployed specifically to act as the property)s in=houseauditors.

7/21/2019 Chapter 01

13/25

1* 2009 John Wiley & Sons Hoboken, NJ 07030


anagerial Accountinganagerial Accounting

anagerial accounting is the -asic topic of this -oo%.

anagerial accounting is the syste! of recording andanaly0ing transactions for the purpose of !a%ing

!anage!ent decisions. Its proper use requires s%ill insight e+perience and

intuition.

These are the sa!e characteristics possessed -y the

-est hospitality !anagers.

7/21/2019 Chapter 01

14/25



7/21/2019 Chapter 01

15/25



CertificationsCertifications

Certified Pu-lic Accountant >CPA@A CPA is recogni0ed as highly co!petent and

professional in one or !ore of the -ranches ofaccounting.

Certified anage!ent Accountant >CA@A CA assists -usinesses -y integrating accounting

infor!ation into the -usiness decision process. Hospitality 7inancial and Technology Professionals

>H7TP@ H7TP offers certifications for hospitality professionals/or%ing in the accounting and technology areas

7/21/2019 Chapter 01

16/25



Why Hospitality anagers UseWhy Hospitality anagers Use

anagerial Accountinganagerial Accounting

Hospitality accounting is not a separate -ranch ofaccounting -ut it is a ,ery speciali0ed area that focuseson those accounting techniques and practices used inrestaurants hotels clu-s and other hospitality-usinesses.

Those practicing !anagerial accounting in thehospitality industry ha,e speciali0ed %no/ledge.

That %no/ledge is the result of learning the intricacies

of the restaurant or hotel -usiness and then applying/hat they %no/ to a financial analysis process.

7/21/2019 Chapter 01

17/25



The Unifor! "yste! of AccountsThe Unifor! "yste! of Accounts

any hospitality co!panies require that their !anagersuse a series of suggested >unifor!@ accountingprocedures created specifically for their o/n seg!ent ofthe hospitality industry.

A unifor! syste! of accountssi!ply represents agreedupon !ethods of recording financial transactions /ithina specific industry seg!ent.

7/21/2019 Chapter 01

18/25



The Unifor! "yste! of AccountsThe Unifor! "yste! of Accounts

Unifor! "yste! of Accounts for &estaurants >U"A&@ e,eloped -y the ational &estaurant Association

>&A@ Unifor! "yste! of Accounts for the $odging Industry

>U"A$I@ e,eloped -y H7TP and the #ducational Institute >#I@of the A!erican Hotel $odging Association>AH$A@

Unifor! "yste! of 7inancial &eporting for Clu-s

>U"7&C@ e,eloped -y H7TP and the Clu- anagersAssociation of A!erica >CAA@

7/21/2019 Chapter 01

19/25



#thics and Hospitality Accounting#thics and Hospitality Accounting

An accounting acti,ity !ay -e legal -ut still the /rongthing to do.

#thics refers to the choices of proper conduct !ade -yan indi,idual in his or her relationships /ith others.

Ho/ indi,iduals deter!ine /hat constitutes ethical-eha,ior can -e influenced -y their cultural -ac%groundreligious ,ie/s professional training and their o/n!oral code.

There are rules that !ust -e follo/ed if a !anager)sfinancial records are to -e trusted and if theinterpretations !ade a-out that financial data is to -epercei,ed as honest.

7/21/2019 Chapter 01

20/25

2< 2009 John Wiley & Sons Hoboken, NJ 07030


7/21/2019 Chapter 01

21/25



Case "tudiesCase "tudies

In this -oo% /hen practical case studies /ill -e used

as reference points for !anagerial accounting acti,ities.

Blue $agoon Water Par% &esort (oshua)s &estaurant

7/21/2019 Chapter 01

22/25



The Blue $agoon Water Par%The Blue $agoon Water Par%

&esort' A Case "tudy&esort' A Case "tudy Paige Dincent Eeneral anager

3

7/21/2019 Chapter 01

23/25

2* 2009 John Wiley & Sons Hoboken, NJ 07030

Managerial Accounting for the Hospitality Industry

Dopson & Hayes

The Blue $agoon Water Par%The Blue $agoon Water Par%

&esort' A Case "tudy&esort' A Case "tudy A 3

7/21/2019 Chapter 01

24/25



Dopson & Hayes

(oshua)s &estaurant' A Case "tudy(oshua)s &estaurant' A Case "tudy

(oshua &ichards o/ner

$ocated across the street fro! the Blue $agoon WaterPar% &esort

A!erican=style !enu including -eef chic%en por% andseafood ite!s

Appro+i!ately F23

7/21/2019 Chapter 01

25/25



Dopson & Hayes

&e,ie/ of $earning Outco!es&e,ie/ of $earning Outco!es

#+plain the pri!ary purpose of accounting and each ofthe fi,e -ranches of accounting.

#+plain /hy !anagerial accounting in the hospitalityindustry is different fro! !anagerial accounting used inother industries.

&ecogni0e the Unifor! "yste!s of Accountsappropriate for the hospitality -usiness you !anage.

&ecogni0e your ethical responsi-ilities as a !anagerialaccountant in the hospitality industry.

Date post:	07-Mar-2016
Category:	Documents
Upload:	ferdinand-macol
View:	213 times
Download:	0 times

Chapter 01

Documents