Managing Financial Systems in the Hospitality Industry Essay

Managing Financial Systems in the Hospitality Industry - Essay Example This essay stresses that financial statement appraises the company’s owners of the financial standing of the firm. Based on this the organization takes decisions, which affect both the profitability and the risk of the firm’s operations. In the hospitality industry, management accounting system (MAS) gives an evaluation of the performance. Financial statements help to monitor business performance and analyze statement relevant to investment decisions. There is more emphasis now on risk assessment and non-financial performance measures. This paper makes a conclusion that Market analysis gives details of competition, and expected business based on macro and micro factors. It takes into account the country’s economy, the reasons for recessions and downslide and the resultant impact on the business proposed. The projections of sales and profitability can only be made once the revenue per customer is estimated. Market segmentation further helps to get a realistic picture. The value of the company is determined by the analysts and the capital market by discounting the present value of the future cash flows that will be generated by the company’s operations. The assets and liabilities also change in value over time. The revaluations are fixed with reference to either the stock market or the real estate market. In the case of the hospitality industry it is related to the real estate market. The financial analysts also deal separately with the assets and liabilities.