Introduction
The name of this business is Blue Hotel and Resort. The business is hotel-based but targets local and international tourists who are coming into the country all year round. The business will mostly be aimed at taking advantage and promoting local tourism, which has not been very much exploited because investors and the government have been concentrating on international tourists.
Type of Business
The business will be a partnership because it requires a large amount of capital which will be contributed by the partners. Investors will be included as partial owners of the business. A large amount of capital will be used to rent business premises at different localities and towns suited for local and international tourists’ attraction sites across the country, development of these apartments to suit the requirements and standards, and equipping of these hotels with necessities to carry out the business. The business will start by managing at least ten hotels at different places best-considered tourists sites across the country. Plans will include buying land and building hotel apartments to be owned by the hotel. This will enable a shift from rental to individually owned apartments.
Services and Products
The hotel will take care of all or most of the tourist’s needs while in the apartment and will provide food, beverages, snacks, and drinks for sale. Different services will include entertainment, gym, and sanitary services. The business services will include room rental services for local and international tourists taking long-term or short-term holidays. Transport services for both goods and people will also be available through business-owned vehicles. In addition, informational systems such as the internet will be made available to the tourists once in the apartments to connect with their businesses and families. All these services will be paid for separately according to the usage by the individual. Tourists shall also be assisted to access various services such as those offered by the government officials and goods according to their requests for the necessary possible arrangements. The business services and products will thus be made as affordable and known to the locals as possible as compared to the competitors’. In addition, the products and services will be modified over time to suit the locals as well as ensure a diversity of products and services to suit the international tourists.
Role of Accounting and the accounting staff
The role of accounting in this business is important since it will ensure that careful planning of the available investment funds is possible. Careful planning will ensure that the business not only achieves its goals and objectives but that these goals and objectives are practically aligned to the excelling of the business through the making of profits. Accounting will ensure that funds are allocated in the most optimal way to gain optimal profits and reduce and eliminate chances of incurring losses through the reduction and management of risks involved in the hotel business.
Transparency of any business is important and therefore accounting will ensure that financial account details are prepared and reported to the business owners to take appropriate action relating to the actual financial position of the business.
Accounting staff needs to be people who are competent enough in the accounting field to understand and implement practical accounting methods in the hotel business. Experience in the field would also be desirable to speed the process and cut on cost, minimize chances of errors, and have confidence. Practitioners will also be required to be of high professional and personal integrity as well as knowledgeable in internal control techniques (Internal Controls, n.d.).
Budgeting, internal controls and management, and work characteristics for the business staff
Any person entering a business should have a professional level of budgeting, internal controls, and cash management before entering business since the excellence of any business will partly be determined by these components. Professional budgeting and cash management will ensure that the businessman allocates properly the available resources to various components of the business to maximize profits while minimizing the expenses. Internal control systems are important in mitigating against risks, threats, and vulnerability of the business, and managers need to be aware of the systems that are important in safeguarding the business assets against losses, compliance with the laws, recording and accounting of revenues and expenditures, and maintenance of the accounting records among other issues (Internal Controls, n.d.). In addition to making sure that the staff are competent, supportive attitudes by managers towards the internal controls, identification of the logical and applicable and reasonable control objectives and adoption of effective and efficient control techniques, there will be clear documentation of all events and activities in accounting and transactions, separation of duties of staff and access and accountability to resources in the business (Internal Controls, n.d.). Investment in the hotel industry would be expected to face such risks like fear for domestic and international terrorism, which means that security for the people is important. The hotel shall invest in intelligent services up to capability or work with the government to minimize risks related to security. Managers will review financial information provided by the accounting staff and use it to estimate future results of current investment plans as well as make appropriate adjustments, make future investment decisions in the growing sectors of the business, estimate future financial positions as well as control excessive expenditure. Accounting will ensure the identification of challenges to achieving the goals and objectives and making sure that the organization’s funds are properly allocated to counter these challenges.
References and bibliography
- Bizzer. (1998). “Understanding Financial Statements”.
- FASAB. “Generally Accepted Accounting Principles”.
- Internal Controls. Web.