Hospitality-Accounting and Finance Research Paper

Hospitality-Accounting and Finance Research Paper

Accounting and finance procedures are ideal irrespective of the field of the company. With the right accounting and finance measures, then companies stand a better chance of attaining financial success. The various aspects of accounting, such as the financial accounting books are essential in the planning and success of any given entity (Mitrovic & Knezevic, 2018). Hilton worldwide holdings chain of hotels is a hospitality brand that we will look at in trying to understand how the different aspects of finance and accounting have been applied. The Hilton worldwide hotel is a major hospitality brand with its activities ranging in various countries. The hotel has over fifty branches that have spread all over the world. Accounting and financial analysis in their different departments have been key to the entity, maintaining its brand over the years.

The average daily rate at of the Hilton worldwide holdings are accounted at an average of a hundred and fifty dollars. This mainly accounts for the average price that an individual pays to be at the hotel (Popsa, 2018). The average pay per hour in various employees differ based on the role of the multiple entities. However, the average hourly rate for the Hilton worldwide is approximately thirteen dollars.

The Hilton hotel holdings generated approximately nine and a half-billion dollars in the year 2019. This signified an increase in sales of over a billion dollars. This means that the different measures in terms of sales accrued benefits to the organization.

Forecast reports at Hilton worldwide include the stock price forecast where there is a median target of a hundred and three dollars with its high estimates being around a hundred and twenty-three dollars. Over time with the growth in shares, ultimately Hilton hotel will gain a competitive advantage over its top competitors due to its brand (foster et al., 2019). The earnings per share forecast, on the other hand, seem to increase to over seven per cent over time. Sales are forecasted to be at around two and a quarter billion by the first quarter..

Payroll Policies and Procedures cover various aspects of the entity. Some of the areas that are covered in the policies include a medical insurance plan where vision and dental coverage is covered. There is also a two to five weeks off that is covered by the Hilton worldwide holdings. The policies even on maternity is that there are twelve weeks of maternity leave and four on paternity. Workers have to set up measures prior before asking for permission for leave to ensure that the activities are well documented and that they do not affect the flow of work at any given time.

Payroll system is the adapted system at Hilton worldwide holdings. The payroll is administered by the management through a central administration system. The payroll manager is in charge of the payroll systems with numerous checks ensuring that the system runs efficiently, and no mistakes can be attributed to the system (Girma, 2016). The payroll system is useful as it aids in maintaining records that are used in the creation of the books of accounts.

Employees at Hilton worldwide are paid monthly. Some of the earnings such as tips are however given daily depending on the setting of the specific brand. Employees also get benefits such as reduced rates in any hotels that are affiliated with the holdings. Members from the employee’s family also get rooms at a discounted price.

The annual budget process at the entity has a range of procedures that it has to undergo at any given time. The annual budget process is characterized by sharing the best practices (Sponem & Lambert, 2016). The holdings get a chance to review its competitors and the market, in general, to come up with methods that will be ideal in coming up with a budget. The budget process entails coming up with a strategic decision that ensures that in any given time, the company stands a chance to excel rather than fail. The budget process is a continuous process and mainly affected by the prevailing market conditions and the various actions by competitors.

Hilton measure their financial success by the books of accounts. The revenue generated over time is an essential part of success. However, the hotel also aims at ensuring that individuals who get a chance to be served in its many brands get quality service at all times. The books of accounts thus play a significant role in the company being able to measure its financial success over time. Acquiring new franchises with the hope of better returns is also a critical aspect that Hilton measures its success with (Capasso, 2017).

In conclusion, accounting and finance are critical to the management of any given entity. It is clear that the top hospitality brands understand this and have put measures to ensure that their accounting and finance systems are sound. Setting up policies that ensure that the welfare of workers is checked is key in ensuring that the various accounting and financial systems with the entity work. Thus, accounting and finance measures are ideal in ensuring that every institution attains its goals in the long run.

References

Capasso, F. (2017). Hilton and Harrah’s: case comparing successful and failed leveraged buyouts.

Foster, D., Ricaurte, E., & Farrar, L. (2019). Calculating Hotel Industry Impact: The Case of Hilton Lightstay.

Girma, S. (2016). Assessing Employees Performance Management System of Hilton Addis Ababa Hotel (Doctoral dissertation, Addis Ababa University).

Mitrović, A., & Knežević, S. (2018, May). THE IMPORTANCE OF ACCOUNTING INFORMATION SYSTEMS USAGE IN HOTEL INDUSTRY. In TISC-Tourism International Scientific Conference Vrnjačka Banja (Vol. 3, No. 1, pp. 275-289).

Popsa, R. E. (2018). Developments on the international hotel chain market.

Sponem, S., & Lambert, C. (2016). Exploring differences in budget characteristics, roles and satisfaction: A configurational approach. Management Accounting Research, 30, 47-61.