ALL 12 CHAPTERS COVERED
,Alaa Aliasrei فيس @Aliasrei تيليگرام عالء هحسن شحن
Chapter 1
Hospitality Industry Accounting
Highlights
* Unique Aspects of the Hospitality Industry
* The Purpose of Accounting in the Hospitality Industry
* Branches of Accounting
* Why Hospitality Managers Use Managerial Accounting
* The Uniform System of Accounts
* Ethics and Hospitality Accounting
Learning Outcomes
1. Describe the primary purpose of accounting in the hospitality industry.
2. List and summarize the purpose of each of the five branches of accounting.
3. Explain why managerial accounting in the hospitality industry is different from managerial
accounting used in other industries.
4. Identify the specific Uniform Systems of Accounts appropriate for the hospitality business
you manage.
5. Summarize your ethical responsibilities as a managerial accountant in the hospitality
industry.
,Alaa Aliasrei فيس @Aliasrei تيليگرام عالء هحسن شحن
Lecture Outline
Unique Aspects of the Hospitality Industry
Hospitality can be defined as the friendly and charitable reception and entertainment of
guests or strangers.
While each of the industry sub-segments are very different and can be classified in very
different ways (for example, profit vs. non profit; or corporate vs. privately owned), one
way to classify them is by their emphasis on either lodging or food and beverage (F&B)
services. It is the emphasis on providing lodging and meals (in a variety of settings) that
distinguishes those who are considered to be working in the “hospitality” industry.
Within the lodging and food services industries are a variety of related fields, including
hotels, restaurants, clubs, resorts, casinos, cruise ships, theme parks; the recreation and
leisure market: arenas, stadiums, amphitheaters, civic centers, and other recreational
facilities; the convention center market; the education market: colleges, universities, and
elementary and secondary school nutrition programs; the business dining market:
corporate cafeterias, office complexes, and manufacturing plants; the health care
market: long-term care facilities and hospitals; and the corrections market: juvenile
detention centers and prisons.
The number of opportunities offered by the hospitality industry is significant, as are the
opportunities for those managers who understand and can utilize their hospitality
accounting skills.
, Alaa Aliasrei فيس @Aliasrei تيليگرام عالء هحسن شحن
The Purpose of Accounting in the Hospitality Industry
Accounting is the process of recording financial transactions, summarizing them, and
then accurately reporting them. An accountant is a person skilled in the recording and
reporting of financial transactions.
Accounting is utilized by all managers in business. Accounting in the hospitality industry is
utilized every time a guest purchases food, beverages, or a hotel guest room.
Businesspersons estimate their costs before they decide to build hospitality facilities and
often seek loans from banks to help them. Banks want to know about the proposed
business’s estimated financial performance before they decide to lend it money.
The owners of a hospitality facility want to monitor their business's financial condition;
investors want to put their money in businesses that will conserve or increase their
wealth. To monitor their investments, owners and investors seek out and rely upon
accurate financial information.
Accounting is not the same as management; accounting is a tool used by good managers.
Hospitality managers must learn to use accounting techniques as well as their education,
experience, values, and goals to make the very best management decisions possible for
themselves and the businesses they are responsible for managing.
,Alaa Aliasrei فيس @Aliasrei تيليگرام عالء هحسن شحن
Chapter 1
Hospitality Industry Accounting
Highlights
* Unique Aspects of the Hospitality Industry
* The Purpose of Accounting in the Hospitality Industry
* Branches of Accounting
* Why Hospitality Managers Use Managerial Accounting
* The Uniform System of Accounts
* Ethics and Hospitality Accounting
Learning Outcomes
1. Describe the primary purpose of accounting in the hospitality industry.
2. List and summarize the purpose of each of the five branches of accounting.
3. Explain why managerial accounting in the hospitality industry is different from managerial
accounting used in other industries.
4. Identify the specific Uniform Systems of Accounts appropriate for the hospitality business
you manage.
5. Summarize your ethical responsibilities as a managerial accountant in the hospitality
industry.
,Alaa Aliasrei فيس @Aliasrei تيليگرام عالء هحسن شحن
Lecture Outline
Unique Aspects of the Hospitality Industry
Hospitality can be defined as the friendly and charitable reception and entertainment of
guests or strangers.
While each of the industry sub-segments are very different and can be classified in very
different ways (for example, profit vs. non profit; or corporate vs. privately owned), one
way to classify them is by their emphasis on either lodging or food and beverage (F&B)
services. It is the emphasis on providing lodging and meals (in a variety of settings) that
distinguishes those who are considered to be working in the “hospitality” industry.
Within the lodging and food services industries are a variety of related fields, including
hotels, restaurants, clubs, resorts, casinos, cruise ships, theme parks; the recreation and
leisure market: arenas, stadiums, amphitheaters, civic centers, and other recreational
facilities; the convention center market; the education market: colleges, universities, and
elementary and secondary school nutrition programs; the business dining market:
corporate cafeterias, office complexes, and manufacturing plants; the health care
market: long-term care facilities and hospitals; and the corrections market: juvenile
detention centers and prisons.
The number of opportunities offered by the hospitality industry is significant, as are the
opportunities for those managers who understand and can utilize their hospitality
accounting skills.
, Alaa Aliasrei فيس @Aliasrei تيليگرام عالء هحسن شحن
The Purpose of Accounting in the Hospitality Industry
Accounting is the process of recording financial transactions, summarizing them, and
then accurately reporting them. An accountant is a person skilled in the recording and
reporting of financial transactions.
Accounting is utilized by all managers in business. Accounting in the hospitality industry is
utilized every time a guest purchases food, beverages, or a hotel guest room.
Businesspersons estimate their costs before they decide to build hospitality facilities and
often seek loans from banks to help them. Banks want to know about the proposed
business’s estimated financial performance before they decide to lend it money.
The owners of a hospitality facility want to monitor their business's financial condition;
investors want to put their money in businesses that will conserve or increase their
wealth. To monitor their investments, owners and investors seek out and rely upon
accurate financial information.
Accounting is not the same as management; accounting is a tool used by good managers.
Hospitality managers must learn to use accounting techniques as well as their education,
experience, values, and goals to make the very best management decisions possible for
themselves and the businesses they are responsible for managing.
