ACCOUNTING FOR HOSPITALITY MANAGERS, 5th Edition

A hospitality managerial accounting and hospitality financial management text.

The level of student success in reading financial statements is directly related to their understanding of the accounting system used in the lodging industry. To achieve this competence, more than just a chart of accounts is required. This text presents, in four chapters, an analysis of the accounts in a logically arranged topical sequence:

1: Hotel Revenue Accounting

2: Hotel Expense Accounting

3: Property and Equipment Accounting

4: Other Noncurrent Assets Accounting

The largest single expense with complex governmental regulations is labor. No other text offers a comprehensive payroll chapter. The coverage of the Fair Labor Standards Act, Payroll Accounting, Tipped Employees, and Tip Regulation are presented in Chapter 5: Hospitality Payroll Accounting.

The reading and analyzing of financial statements, departmental and corporate, is a critical part of any manager’s responsibilities. These financial statements are presented in the following 7 chapters:

6: Hotel Departmental Statements

7: Hotel Income Statement

8: Ratio Analysis of the Income Statement

9: Hotel Balance Sheets

10: Ratio Analysis of the Balance Sheet

11: Statement of Cash Flows

12: Interim and Annual Reports

The knowledge and procedures to develop budgets, measure performance, and determine causes of variances are presented in the following three chapters:

13: Budgeting Expenses

14: Forecasting Sale

15: Budgetary Reporting and Analysis

Financial Decision Making, Chapter 16 realizes that every manager must make effective financial decisions on issues such as:

• Closing for the off-season
• Acquiring a business
• Franchising
• Leasing realty, vehicles, or equipment.

Cash Management and Planning, Chapter 17 is a comprehensive chapter that covers more than just cash management procedures; topics such as cash float, lockbox systems, zero balance accounts, and sweep accounts are discussed. Unlike the usual cash management chapter, two topics that every executive should be familiar with are presented; namely EBITDA and Free Cash Flow.

Casino Accounting, Chapter 18 is a comprehensive chapter providing the student with extensive knowledge of critical topics for success. Today’s hospitality student should have a knowledge of casinos; a rapidly growing industry with numerous professional job opportunities. Topics include a brief history of gaming, industry demographics, descriptions of several casino games, the role of accounting in casinos, and these important financial topics:

• Principles of casino accounting and internal control
• Principles of casino financial accounting
• Casino Financial Statements

Inventory Accounting, Chapter 19 is a comprehensive chapter covering topics such as inventory valuation, gross profit method, and these inventory accounting methods: specific ID, FIFO, LIFO, and weighted average.

Assorted Topics, Chapter 20 includes topics covering a multitude of diverse interests such as:

• Feasibility Study
• Allocating service departments and fixed charges to revenue centers
• Fair Value Accounting
• Compound Value
• Present Value
• Compound Value of an Ordinary Annuity
• Compound Value of an Annuity Due
• Present Value of an Ordinary Annuity

Return to Introduction Page