UNIT 05: FINANCE MANAGEMENT IN TOURISM AND HOSPITALITY Unit Reference Number Unit Title Unit Level Guided Learning Hours Number of Credits Core / Option SSAs Unit Grading Structure
D/507/0027 Finance Management in Tourism and Hospitality 5 200 20 Core 7.4 Hospitality and Catering 8.2 Travel and Tourism Pass
Unit Aims This unit provides learners with an understanding of the fundamental principles of financial accounting and financial management in the tourism and hospitality industry. Learners will develop the ability to apply these principles to the work of managers in the tourism and hospitality environment. This unit should be studied within the contexts of local, national and international legal frameworks and good practice relating to finance.
Learning Outcomes and Assessment Criteria Learning Outcome - The learner will: Explain the principles 1 of accounting in tourism and hospitality businesses
Assessment Criterion - The learner can: 1.1 1.2 1.3
2
Describe the principles and documents involved in financial transactions
2.1 2.2 2.3
3
4
Explain how a trial balance and adjustments are used to prepare a statement of comprehensive income and a statement of financial Justify how an organisation should manage its working capital and the process of revenue
3.1 3.2
4.1 4.2 4.3
Define the purpose of accounting and finance management in the context of a tourism or hospitality organisation. Critically analyse the difference between a sole trader, a partnership and a limited company Explain how financial software can support Tourism and Hospitality business’ accounting functions Explain the rules of double-entry book-keeping and how it is used to maintain financial records Describe how to calculate and correctly account for VAT on purchases and sales Explain the role cash receipts, cash payments and bank reconciliation Explain how a trial balance is constructed. Demonstrate how this trial balance along with adjustments is used to prepare a Trading, Profit and Loss account and a Balance Sheet
Describe the types and sources of finance available to a business and the ways in which a business raises capital Explain the role of and the process of budgetary control and revenue management in a tourism or hospitality business Demonstrate how to prepare a simple cash budget
Assessment To achieve this unit, learners must achieve the learning outcomes and meet the standards specified by all assessment criteria for the unit. Learning Outcomes to be met All 1 to 4
Assessment criteria covered All ACs under LO 1 to 4
Assessment type Coursework
Word count (approx. length) 3000 words
Study Contents
Introduction to finance management Introduction to management accounting Different types of tourism and hospitality business structures: sole trader, limited company, partnerships
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