ACCOUNTING FOR HOSPITALITY MANAGERS, 5th Edition This advanced, yet easy to read, text covers topics in the fields of: managerial accounting, and hospitality financial management
SCOPE OF TEXT A managerial accounting/financial management text providing expert information and procedures to analyze profit problems and targets, financial statement analysis, hospitality payroll principles including accounting for tips, budgeting, forecasting, and more.
Highlights of the text ·The text contains 20 chapters -Scroll to Table of Contents · The text incorporates 19 relevant case studies -Scroll to Case Studies Listing · Get a brief review of the text- Scroll to Survey the Text · The fifth edition contains many industry and technical updates - Scroll to PREFACE · Detailed chapter information is available -Scroll to Representative Chapter Topics
Special Features: ·Chapters provide Internet Sitesrelated to the topical material. · Managerial accounting Case Studies in each chapter · The text incorporates the Uniform System of Accounts for the Lodging Industry as a separate topic facilitating he student’s learning of fundamentals and principles before exploring into more complex issues.
Sample contents: Hotel Accounting Principles (In accordance with AHLA) Hotel Financial Statements (In accordance with AHLA) Hotel Departmental Statements (In accordance with AHLA) Restaurant Accounting (In accordance with NRA) Restaurant Financial Statements (In accordance with NRA) Restaurant Accounting Principles (In accordance with NRA) Performance ratio analysis RevPar Casino Accounting Hospitality Payroll - An in-depth presentation The balance sheet including ratio analysis Statement of Cash Flow Budgeting and Forecasting Sarbanes-Oxley Act, the SEC, 10-K Report Fair Value Accounting How to prepare a Feasibility Study Present and Compound Value Allocation of service departments and fixed charges to revenue centers AND MUCH MORE
CHAPTERS · 1 Hotel Revenue Accounting · 2 Hotel Expense Accounting · 3 Property and Equipment Accounting · 4 Other Noncurrent Assets Accounting · 5 Hospitality Payroll Accounting · 6 Hotel Departmental Statements · 7 Hotel Income Statements · 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 · 13 Budgeting Expenses · 14 Forecasting Sales · 15 Budgetary Reporting and Analysis · 16 Financial Decision Making · 17 Cash Management and Planning · 18 Casino Accounting · 19 Inventory Accounting · 20 Assorted Topics, such as: o Feasibility Study o Allocating service departments and fixed charges to revenue centers o Fair Value Accounting o Compound Value o Present Value o Compound Value of an Ordinary Annuity o Compound Value of an Annuity Due o Present Value of an Ordinary Annuity
The case studies in each chapter are: 1: Sales Reporting and Internal Control for a Pizza Restaurant 2: Investigative Fire Loss of Inventory 3: Rationale for Leasing and Effect of Operating and Capital Leases 4: Evaluating a Business Franchise Acquisition 5: Planning a Computerized Hospitality Payroll System 6: Synthesis of Function and Structure - Departmental Reports 7: Purpose and Preparation of a Pro Forma Income Statement 8: Critique of Hotel Income Statement 9: Critique of a Balance Sheet 10: Working Capital Management 11: Statement of Cash Flows 12: Preparation of Annual Report to Shareholders 13: Budgeting Expenses and Breakeven Analysis 14: Forecasting Beverage Sales 15: Budget Installation: A Management Critique 16: Business Acquisition – An Entrepreneurial Endeavor 17: Budgeted Income Statement and Cash Flow Analysis 18: Casino Financial Accounting System 19: Inventory Management and Theft Deterrence
Survey of 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
Chapter 16 Financial Decision Making 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.
Chapter 17 Cash Management and Planning 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.
Chapter 18 Casino Accounting 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
Chapter 19 Inventory Accounting 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.
Chapter 20 Assorted Topics 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
Premier hospitality companies want hospitality candidates that know the uniform system of accounts and the application of financial management principles in addition to the usual specialty courses in purchasing, menu planning, et al. A hospitality manager or executive is expected to be profit results oriented with exceptional financial decision making skills. Accounting for Hospitality Managers provides the knowledge and tools for an aspiring student or professional to become a successful executive in the Hospitality industry.
Teachers require an up-to-date, authoritative text with relevant supplementary materials. Students deserve a text that is easy to read, meaningful, and useful in the real world of hospitality. As an author of hospitality accounting and managerial texts, my customer market is more than teachers and students; it includes the hospitality employer who is an integral part of the professional cycle. My obligation as an author is to provide a product to academia that will develop a job candidate satisfactory to the hospitality employment market. Accounting for Hospitality Managers is a pragmatic hospitality managerial accounting text based on industry prerequisites.
Accounting for Hospitality Managers continues to address the needs of the hospitality industry and academia by using an organized writing style that is easily understandable by students, yet sufficiently comprehensive to provide the vocabulary and financial skills required achieving success.
REPRESENTATIVE CHAPTER TOPICS
The following is not intended to be a complete listing of every topic in each chapter. However, the topics listed do provide a satisfactory representation of each chapter's content.
Chapter 1: Hotel Revenue Accounting Revenue Centers & Accounts Trade & Cash Discounts Automated and POS Systems Internal Control for Food and Beverage Sales Accounting & Front Office Functions & Reports Daily Report of Revenue Internet Reference Sites Case Study: Sales Reporting and Internal Control for a Pizza Restaurant
Chapter 2: Hotel Expense Accounting Business Segmentation Financial Reporting Centers Responsibility Accounting Departmental Organization Charts Departmental Expense Accounts Accounting for Employee Meals Accounting for Credit Card Fees Bad Debts Internet Reference Sites Case Study: Investigative Fire Loss of Inventory
Chapter 3: Property & Equipment Accounting Acquisition Cos Operating Leases & Capital Leases Depreciation & Amortization Methods including MACRS Sale, Disposal, Trade-in Internet Reference Sites Case Study: Rationale for Leasing and Effect of Operating and Capital Leases
Chapter 4: Other Noncurrent Assets Intangible Assets Security Deposits Cash Surrender Value of Life Insurance Internet Reference Sites Case Study: Evaluating a Business Franchise Acquisition
Chapter 5: Hospitality Payroll Accounting Fair Labor Standards Act Gross Wages Calculation FICA and Income Taxes IRS 940 and 940 EZ W2 Tipped Employees 8% Tip Regulation, Tips & Tip Credit Calculation of Time Worked, Gross Pay, Net Pay Tip Shortfall Allocation, Employee Tip Reporting Employer’s Payroll Taxes, Sample IRS Forms Internet Reference Sites Case Study: Computerized Hospitality Payroll System Appendix contains research reports on Labor Laws for Employers; Teen Labor Laws for Employers; Overtime Rules, Tip Reporting
Chapter 6: Hotel Departmental Statements Hotel Financial Information Systems Hotel Chart of Accounts (Uniform System) Departmental Statements, Formats & Examples Uniform System of Accounts for the Lodging Industry (USALI), 10th revised edition Internet Reference Sites Case Study: Synthesis of Function and Structure: Departmental Reports Appendix: USALI Internal Income Statement and Sample Departmental Statements
Chapter 7: Hotel Income Statements Elements and Conventions Income Statement Formats and Examples Pie Charts, Common Size Analysis & Comparative Analysis Uniform System of Accounts for the Lodging Industry (USALI) Internet Reference Sites Case Study: Purpose and Preparation of a Pro Forma Income Statement Appendix: USALI External Income Statement and Sample Departmental Statements
Chapter 8: Ratio Analysis - Income Statement Departmental and Hotel Ratios RevPar Stock Valuation Ratios Internet Reference Sites Case Study: Critique of Hotel Income Statement
Chapter 9: Hotel Balance Sheet Elements and Conventions Internal & External Balance Sheets Common Size & Comparative Analysis Uniform System of Accounts for the Lodging Industry (USALI), 10th revised edition Internet Reference Sites Case Study: Critique of a Balance Sheet Appendix: USALI Balance Sheet
Chapter 10: Ratio Analysis – Balance Sheet Liquidity, Asset Management, Debt Management Internet Reference Sites Case Study: Working Capital Management
Chapter 11: Statement of Cash Flows Cash and Cash Equivalents Format Preparation Demonstration Problem Internet Reference Sites Case Study: Statement of Cash Flows
Chapter 12: Interim & Annual Reports Audit, Review, and Compilation Services Consolidated Statements Governmental Authority on Reporting by Public Companies SEC Sarbanes-Oxley Act 10-K Report Report of Independent Public Accountant Annual Report to Shareholders Internet Reference Sites Case Study: Preparation of Annual Report to Shareholders
Chapter 13: Budgeting Expenses Variable, Fixed, Semi-variable Expenses Strategies for Budgeting Variable, Fixed, SV expenses High-Low Method Regression Analysis Method (Computerized & Manual) Break-even Point Contribution Margin Profit Target Effect of Volume & Price Increases on Costs Internet Reference Sites Case Study: Budgeting Expenses and Breakeven Analysis
Chapter 14: Forecasting Sales Increase Prices or Increase Volume Enigma Moving Average Method Percentage Method Statistical Models Calculating Average Room Rate Hubbart Formula Contribution Margin and CM% Sales Mix CVP Method Internet Reference Sites Case Study: Forecasting Beverage Sales Chapter 15: Budgetary Reporting & Analysis Zero-Base Budgeting Operations Budget Master Budget Flexible Budgets Variance Analysis Capital Budgeting Synopsis Internet Reference Sites Case Study: Budget Installation: A Management Critique
Chapter 16: Financial Decision Making Contributory Income Statement Format Off-season Analysis: Qualitative & Quantitative Considerations Acquiring a Business Covenant Not to Compete Hazards in Using Seller’s Financial Statements Skimming Claims by Seller Importance of Seller’s Legal Form of Organization Purchase of a Proprietorship, Purchase of a Corporation Treatment of Acquired Assets (Corporate Stock and Asset Method) Purchasing a Family-Operated Business Impact of Financing on Profits and Cash Selecting an Enterprise from a Number of Choices Buying a Franchise Leasing of Realty, Leasing of Automobiles, Gap Insurance Closed & Open-end Leases Calculating the Monthly Lease Payment Capital Budgeting (ARR & Payback) Internet Reference Sites Case Study: An Entrepreneurial Endeavor
Chapter 17: Cash Management and Planning Cash and cash flow, Cash Inflows and Outflows, Cash Flow Analysis Cash Management Profit Does Not Represent Increase to Cash Cash Management Vocabulary Benefits of Cash Management Developing the Cash Management Data Cash Flow Demonstration Case Cash Management Tools to Maximize Cash Flows & Returns: Cash Float, Acceleration of Cash Deposits Management of Excess Funds: Zero Balance Account (ZBA), Sweep Account Misleading Measures of Cash Flow EBITIDA vs. EBITDA · Internet Reference Sites Case Study: Budgeted Income Statement and Cash Flow Analysis APPENDIX: Adjusted Net Income Approach
Chapter 18: Casino Accounting History of Gambling Present Synopsis of Gaming Industry Demographics Gaming Associations Commercially Owned Casinos Indian Owned Casino Racinos Casino Games, such as Baccarat Blackjack Craps Keno Roulette Slot machines Role of Accounting in Casinos Principles of Casino Accounting and Internal Control Money, Chips, and Controls Markers and Foreign Chips Basic Cage Cashiering Controls Slot Machine Controls Table Game Controls Count Room Controls Vault Room Controls Handle, Win, Drop Principles of Casino Financial Accounting Gaming Revenue Accounting for Nonprogressive, Progressive, Participating Slots Financial Statements Complimentary Items and Allowances Payroll and Other Expenses Internet Reference Sites Case Study: Casino Financial Accounting System
Chapte19: Inventory Accounting Inventory Valuation Gross Profit Estimating Method Specific ID, FIFO, LIFO, Weighted Average Methods Periodic & Perpetual Methods Internet Reference Sites Case Study: Inventory Management and Theft Deterrence
Chapter 20: Assorted Topics Feasibility Study o Goal of Feasibility Study o Format of Feasibility Study o Proposal Letter o Opening Section of the Feasibility Report o Description of Market Area o Evaluation of Area and Project Site. o Analysis of Competition o Demand Analysis o Recommend Facilities and Services o Estimated Income Statement Allocating service departments and fixed charges to revenue centers Fair Value Accounting o Fair Value Accounting Defined o FASB Statement 157 o How Fair Value Accounting Improves Financial Reporting o Measurement of Fair Value o Transition Adjustment o Limitation of 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