FOOD AND BEVERAGE
Contents
Introduction:
Task B
2.1 Discussion regarding the usage of financial statements used in the event of food and beverage
2.3 Analysis of the process of purchasing:
4.3 Factors determining the success of the services and any recommendation for improvement:
Conclusion:
References
Introduction:
This particular report is going to evaluate several financial statements, which can be proved as very beneficial within hospitality sector. Usefulness and features of the several financial statements are going to be portrayed in this following report. This report also helps us to generate an idea of how the process of purchasing is obtained and the things that are required to maintain the hospitality industry in order to overcome a particular event successfully. On the other hand, the report will also provide valuable information about several factors by which the overall event could be enhanced.
Task B
2.1 Discussion regarding the usage of financial statements used in the event of food and beverage
Financial statements are prepared by the firms so as to maintain proper accounting records. In the process determining the overall performance, every organization considers their financial statements. The involvement of regular statements of the economic development helps the organization to make proper plans in how to progress the next step of development in the industry. The reports help in providing an insight into the profit or loss that are generated through the sales of the organization in the industry. Financial statements can be used for analyzing the organizational profit or loss. In order to record several transaction histories related to the business, financial statements are very important for the organizations to consider. On the other hand, those statements can assist the managers in understanding the overall performance of the business (Ferrer & Ferrer, 2016).
Thus in this section, the analysis and discussion of different financial statement are revealed underneath:
Balance sheet:
Balance sheet or statement of financial position has been prepared in order to understand the current financial position of the company or for a specific duration. It helps to assess the total assets acquired by a company by successfully incorporating all the important operations needed by a firm for a particular duration. Not only the assets, the liability of the company can be easily determined with the help of balance sheet.
Income statement:
Income statement is considered as the valuation of total income and expenses borne by a firm within a specific duration. This statement has assisted the mangers in order to understand the overall business performance of the organization. It can provide valuable information about loss faced and profit acquired by the business in a particular financial year. It also portrays the organization's overall revenue along with total cost of sales. In order to understand the current financial sate of the organization, income statement can be referred as very much influential.
Statement of cash flow:
Statement of cash flow has enabled the organization to determine actual value of the cash achieved by the firm in a particular period. The activities like cash from operation, cash from investment and cash from financial perspectives can be easily calculated so as to ensure about the closing cash balance achieved by the firm. Therefore, computing the cash requirement of the firm can be easily derived from this financial statement.
Variable analysis:
This analysis has been proved as very helpful for the organization in the process of conducting the comparison between the actual business performance and expected business performance. However, in most of the cases the budgeted or anticipated result is not as per the actual result obtained through operations. Then the situation has been signified as adverse situation or else favourable balances upon the budgeted materials cost and also labour cost can be ascertained.
Overhead expenses:
In this statement, the particulars of investments that a company needs to provide in order to complete the project, which are listed with the approximate amount of the particulars. This particular statement helps to understand how much overhead cost has been deemed for accomplishing all the operations successfully. The production overhead cost needs to be as low as possible in order to get the maximum benefit from the project and increase the profitability from the overall work that the company is going to provide.
Cost statements:
Cost statements are helpful in providing proper information about the expenses regarding any occasion or event. This can also determine the probable revenue generated from the event. In order to host any event, hospitality organizations needs to consider four major cost statements. Those major cost statements are portrayed underneath:
Dish expenses:
This particular statement helps in understanding the cost of materials and equipment that are required in order to prepare the particular dishes in an event.
Expense statement:
Apart from the projected cost they also have some overhead expenses that a particular event needs in order to complete the orders. These expenses include the cost of decorations and utilities along with rent and closing costs.
Cost of employees:
This statement provides the entire list of payments needed to be made to the staff or employees of the event for the company. These include wages of the employees, taxes, casual payment made in order to prepare some miscellaneous products needed to complete the event.
Cost of beverage:
Any kind of alcohol or non-alcoholic products like soft drinks and mineral waters are always needed in any event. The cost of these materials is also listed in a separate statement that is under the cost of beverages.
2.3 Analysis of the process of purchasing:
Within the hospitality industry, the process of purchasing has been considered as a very crucial aspect for the organizations. Efficient purchasing process is always indicating towards providing quality services and products. It has also been examined that purchasing audit can be helpful in maintaining the overall purchasing process efficiency. Several phases in the purchasing process have been portrayed below:
Several phases of purchasing Functions
Supplier selection Suppliers play a very crucial for the organizations. They are responsible for providing quality materials for the organization. This can also help the organization in order to supply quality products. The selection process of the suppliers is a crucial part in making an event successful by providing the best possible materials needed to make the dishes maintaining the proper quality of the products. In accordance to the way of purchasing the list of suppliers are required to be prepared in advance.
Order purchases In the process of securing the event budget, the management should approve the overall Purchase orders list before they actually purchased from the market. This list is important in order to make sure that each item is authentic and are necessary for concluding the event. The quality and quantity of the products are also needed to be specified for purchase orders so that the possibility of ambiguity can be overcome.
Receipts Each and every purchase made should accompany a particular receipt of purchase so that it can portray the budget as well as the expenses. The documentation of the receipts should be in separate files, which need to be stored in a completely segregated way in order to make sure that nothing else is mixing with these documents.
Security of storage All the materials that are just purchased should be maintained in a proper storage place so that they are not contaminated or damaged by the climate or surrounding environment in the place of the event. The storage place needs to be cool and composed without any dust or dirt in the surrounding area.
Utilization It is very crucial to utilize the materials properly, which can also eliminate the chances of wastages.
Pricing The pricing of the product should be implemented after analyzing the overall cost and desired profit margin.
4.3 Factors determining the success of the services and any recommendation for improvement:
There are some major factors available, by which the success of the event could be determined. This part is going to evaluate some major factors.
Raw materials:
The raw materials that are needed to prepare the dishes and they should be procured from selected suppliers in order to maintain the quality regarding the product that they are providing to the customers. The quality of food and beverages should be at the optimum level in order to make sure that each and every dish should be tastier and must preferred by the customers.
Suggestions from the customer:
In order to determining the success of the event, customer's feedbacks are very crucial for the hospitality industry. Positive feedbacks from the customers can help the organization in order maintain their quality services. On the other hand, negative feedbacks can help in determining the lacks in the services. These factors help in determining the success of future projects and also improvising the way of presentation in future (Manhas & Tukamushaba, 2015).
Workforce scalability:
The staff and the employees that are working with the company needs to have the appropriate scale and the positive thinking of improvement in order to bring success to the projects. The skill and quality of the employees help in developing the overall workforce and manage to provide the best possible service to the clients that are visiting to the hotel.
Recommendations:
Planning and organizing:
Proper planning and organizing can be proved as very crucial for the organization in order to ensure the success of the event. It will be helpful for the company to overcome certain challenges that they might face in the future. The selection of employees and suppliers are a few points that are important when it comes to making the most of the opportunities that the companies getting from the market. The flow of structure in the working process should be an integral part of the Planning. The distribution of work between the different departments of the event is important in order to segregate the workload evenly among the overall team.
Suitable environment:
Proper environment always play a crucial role within the hospitality industry. It has been examined that customers are always fond of suitable environment and they often gets attracted towards that. In order to provide these services, it is important for the company to understand the importance of decorations and visual beauty in each project that they take. Most of the customers and clients get attracted when they see beautiful designs and decorations. For this reason, it is important for the company to focus on the visual beauty of the presentations that they are providing to the clients.
Conclusion:
The discussion has made very much clear about how financial statements and financial documents are important in order to increase the possibility of data tracking and performance of accounting in hospitality industry. Each and every data carries with it the prospect of future development and performance reports that help the management in understanding the loopholes in execution process and the planning process. With the help of a better documentation process, it becomes easier for the management also to understand how they can improve their services.