Overview

There are some people who always seem to have enough money to pay their bills regardless of how little money they earn, while others who earn far more struggle. People who manage their money well plan ahead. They look to the future – considering their income and expenses. They create budgets and then monitor their progress. They know exactly how much they are owed and how much they owe at any given time. They also take care to set some money aside just in case something goes wrong.

In hospitality, a good manager or owner will take a similar approach. They will plan ahead and make allowances for problems that may arise, such as job loss, sickness, interest rate rises and unplanned additional expenses.

The size or the type of hospitality business has little impact on its financial success. They can offer food and beverage service, accommodation, entertainment or a combination of these services. The common feature among successful hospitality businesses is strong financial management policies, procedures and practices.

A financial manager must understand the total financial management process, from developing approaches through to implementation, monitoring and reporting on financial activity.

In this unit you will learn how to:

• Develop approaches to financial management
• Develop and monitor financial procedures and systems
• Make pricing decisions
• Monitor financial performance
• Prepare financial reports.