Accounting and Financial Analysis in the Hospitality Industry

For courses in Hospitality Managerial Accounting.

This book explains how to use numbers and fundamental accounting to operate a successful hospitality department or business. Focusing on the basics, sections progress from accounting and financial analysis to financial statements and management reports to budgeting and forecasting. Throughout the book current hospitality examples, photographs and illustrations are used. This edition includes the latest from the Uniform System of Accounts for the Lodging Industry, Tenth Revised Edition, expanded material on Department Profit and Loss Statements, coverage of the 2009 recession and new practice exercises throughout.

PART I: CREATING A FOUNDATION

1.      Introduction to Numbers, Accounting, and Financial Analysis

2.      Foundations of Financial Analysis

3.      Accounting Department Organization and Operations

PART II: FINANCIAL STATEMENTS AND MANAGEMENT REPORTS

4.      The Profit and Loss Statement ( P & L)

5.      The Balance Sheet ( A&L) and Statement of Cash Flow

6.      Hotel Management Reports

7.      Revenue Management

8.      Comparison Reports and Financial Analysis

PART III: BUDGETS AND FORECASTS

9.      Budgets

10.  Forecasting–A Very Important Management Tool

PART IV: OTHER FINANCIAL INFORMATION

11.  Corporate Annual Reports

12.  Personal Financial Literacy

GLOSSARY

INDEX

New! Coverage of the Uniform System of Accounts for the Lodging Industry, Tenth Revised Edition–published in 2006 by the American Hotel and Lodging Educational Institute.

• Provides students with the latest lodging industry accounting standards and practices.
• Includes the recent changes in format and terminology recommended in the Tenth Revised Edition. 

New! Expanded material on Department Profit and Loss Statements.

• Explains the most important financial statement that hotel and restaurant managers work with and helps them understand it inside and out.  

New! Additional examples on RevPAR, Retention/Flow Through, Revenue Management and Productivities and Profitability.

• Reinforces key accounting and financial concepts so students are more prepared and competitive in their hospitality management positions. 

New! Coverage of the 2009 recession and its impact on accounting and finance practices.

• Helps demonstrate how accounting principles are used by hospitality operations to adjust to changing customer demands and competitor practices.

New! Practice exercises have been added to each chapter.

• Gives students the chance to apply chapter material to realistic exercises and problems.  

New! Expanded glossary now includes chapter references.

• Includes more definitions and new chapter references that make finding terms easy.

For courses in Hospitality Managerial Accounting.

This book explains how to use numbers and fundamental accounting to operate a successful hospitality department or business. Focusing on the basics, sections progress from accounting and financial analysis to financial statements and management reports to budgeting and forecasting. Throughout the book current hospitality examples, photographs and illustrations are used. This edition includes the latest from the Uniform System of Accounts for the Lodging Industry, Tenth Revised Edition, expanded material on Department Profit and Loss Statements, coverage of the 2009 recession and new practice exercises throughout.

Hallmark Features

Accounting fundamentals with a hospitality management focus.

• Emphasizes how accounting concepts and processes can be used as a hospitality, hotel or restaurant manager. 

An emphasis on learning core job responsibilities such as how to:

• Analyze the P&L Statement
• Prepare weekly forecasts
• Develop budgets
• Use actual management and financial reports
• Understand the language of accounting and finance 

Use of hospitality examples, photographs, and reports–from actual hotels, restaurants and golf clubs.

• Provides a meaningful context for students and applies questions to a specific property.