Hospitality Financial Accounting

Management accounting provides accounting information to help managers make decisions to manage the business. In short, Financial Accounting is the process of summarizing financial data taken from an organization’s accounting records and publishing in the form of annual (or more frequent) reports for the benefit of people outside the organization. Financial accountancy is governed by both local and international accounting standards. Financial accountants produce financial statements based on Generally Accepted Accounting Principles of a respective country. In particular cases financial statements must be prepared according to the International Financial Reporting Standards. Consistent with other roles in today’s corporation, management accountants have a dual reporting relationship. The book introduces the fundamentals of financial accounting through examples from hotels, restaurants, and clubs. Even managers who feel they are not “numbers people” will easily understand the accounting process and its function in hospitality operations. This means understanding fundamental accounting concepts, developing solid financial analysis abilities, and then applying them to understand and improve the operational performance of their hotel or restaurant.