Management Accounting

Course Description

Having an effective finance and accounting function will not only help secure the financial strength of a business but will also support managers to develop and implement a business strategy. The aim of this unit is to provide learners with an understanding of the fundamental principles of financial accounting and financial management in the tourism and hospitality industry and how to prepare, interpret and adjust financial statements alongside the preparation of budgets. This unit should be studied within the contexts of local, national and international legal frameworks and good practice relating to finance and accounting.

Course Objectives

Having an effective finance and accounting function will not only help secure the financial strength of a business but will also support managers to develop and implement a business strategy. The aim of this unit is to provide learners with an understanding of the fundamental principles of financial accounting and financial management in the tourism and hospitality industry and how to prepare, interpret and adjust financial statements alongside the preparation of budgets. This unit should be studied within the contexts of local, national and international legal frameworks and good practice relating to finance and accounting.

Key Topics

1. LO1: Know about the context and purpose of finance and accounting in the tourism and hospitality industry.
2. LO2: Be able to prepare financial statements for different types of businesses.
3. LO3: Be able to interpret financial statements.
4. LO4: Understand how a tourism or hospitality business could manage its working capital and revenue management.

Course Outline

Learning Outcomes

1. LO1 Know about the context and purpose of finance and accounting in the tourism and hospitality industry.
2. 1.1 Explain the importance of finance and accounting in the context of a tourism or hospitality organisation.
3. 1.2 Explain the regulatory and legal influences on a tourism or hospitality business’s finance and accounting function.
4. 1.3 Explain how the finance and accounting function supports a tourism or hospitality business’s decision making.
5. LO2 Be able to prepare financial statements for different types of businesses.
6. 2.1 Differentiate between different financial statements.
7. 2.2 Prepare financial statements for a sole trader.
8. 2.3 Prepare financial statements for a partnership.
9. 2.4 Apply techniques to make adjustments to financial statements.
10. LO3 Be able to interpret financial statements.
11. 3.1 Calculate financial ratios from a set of business accounts.
12. 3.2 Compare organisational performance using historical financial data.
13. LO4 Understand how a tourism or hospitality business could manage its working capital and revenue management.
14. 4.1 Explain the benefits and limitations of various sources of finance available to a business.
15. 4.2 Describe the process of budgetary control and revenue management in a tourism or hospitality business.
16. 4.3 Prepare a cash budget.
17. 4.4 Appraise a cash budget.