Hospitality Managerial Accounting

Higher Diploma in Tourism and MICE (Y14/15)

HST-4002 Hospitality Managerial Accounting

Case Study

Group 2

Student Name:

1. Chan Man Ying         130455204
2. Chan Ka Yiu

Content

Introduction        

Question 5.5        

Question 5.6        

Question 5.8        

Conclusion        

Job Distribution        

Introduction

Question 5.5

Since the retiring bookkeeper has many responsibilities to do. She will quit soon. So the owner needs to hire a new bookkeeper. The owner realized that the retiring bookkeeper had so much responsibilities. Then, she tried to take some back.

In the past, the bookkeeper needed to keeping all the accounting records, approve invoices for payment, prepare checks and sign checks that needed to be sent to suppliers when the hotel’s owner is absent. Also, the bookkeeper needed to collect the cash at the end of the day from the front office and restaurant, clear the machine tapes, count and verifying cash against tapes, deposit the cash in the bank, make the necessary entries in the hotel’s bookkeeping records and do the bank reconciliation at the month-end. The retiring bookkeeper had too much workload.

Now, the owner cannot hire and train someone to take over all the responsibilities of the retiring bookkeeper. We suggest that the owner should apply the segregation of duties. That can minimize the hotel owner’s time. Also, it can take over a part of responsibilities of bookkeeper.

First, we suggest that the owner should breakdown the whole process of completing a task into separate duties. Moreover, the owner should separate the control of assets from keeping the accounting records.

Second, the owner should keep all the accounting records and approve invoices for payment, prepare checks and sign checks to suppliers. That can avoid the bookkeeper makes a fake records to steal company's money. It will be safer than before. Since we have consider that the owner is busy of manage the hotel. These few works won’t take much time to do but it can make the internal control become better and more effective. Moreover, the owner can install some CCTV near the cashier and around the shop. That can record what is happening inside the shop. If the bookkeeper steal money inside the shop, the owner can use the record to report him. It also can monitor the bookkeeper and has a deterrent effect.