Basic Hotel Restaurant Accounting

Course Aim
To provide students with an understanding of the interrelationship of business principles and accounting.
Of Interest To
Those who are currently working in the accounting industry or pursuing a career in the Hospitality industry.
Method of Delivery
Online training supported by Academy of Learning Career College facilitators.

Course Introduction

The Basic Hotel and Restaurant Accounting course provides a basis for understanding hospitality accounting concepts and procedures. Students learn about the processing of hospitality financial data, and the flow of financial information in the accounting cycle that result in the production of financial statements. In this course, students recognize that accounting operations in today’s hotels and restaurants require specialized knowledge and skills by examining the most upto- date industry information. Students gain insight into merchant accounts, forecasting and budgeting, and the effect of the SEC and Sarbanes- Oxley Act on financial reporting. They also learn about setting up an Internet store, and meeting today’s methods of doing business.

Course Prerequisites

Not Applicable.

Course Notes

Course textbook is provided for on-going reference. There is a final exam upon completion of the course. Participants who receive 70% or higher on their exam will receive a certificate.

Course Breakdown

  • Lesson 1:

What is Business Accounting?; Why Financial Statements Are Necessary; Why Study Accounting?; The Corporate Accounting Department; The Accounting Profession; The Certified Public Accountant; Influence of Government and Professional Organizations; Generally Accepted Accounting Principles; Business Transactions; Accounting Income vs. Taxable Income; The Accounting Equation; Financial Statements

  • Lesson 2:

Legal Business Structure; Taxation of Business Income

  • Lesson 3:

Basic Financial Statements; Statement of Income; Equity Statements; Balance Sheet; Statement of Cash Flows

  • Lesson 4:

Preparation of the Balance Sheet; Asset Classification; Current Asset Accounts; Noncurrent Asset Accounts ; Liability Classification; Current Liability Accounts; Long- Term Liability Accounts; Bonds; Equity Classification; Proprietorship Equity Accounts; Partnership Equity Accounts; Corporation Equity Accounts; Limited Liability Company Equity Accounts

  • Lesson 5:

Preparation of the Income Statement; Revenue Classification; Sales Accounting; Expense Classification; Cost of Sales Expense; Inventory Systems; Other Business Expenses; Depreciation

  • Lesson 6:

Origins of Bookkeeping; 21st Century Bookkeeping; Bookkeeping Accounts; Learning Debits and Credits; Analyzing Business Transactions; Analyzing 21 Universal Transactions; The Nature of Debits and Credits; Recording 21 Universal Transactions; Contra Accounts; Normal Account Balance

  • Lesson 7:

Advantages of Computerized Systems ; Input Forms; Output Forms; Online Accounting System; Features of Accounting Packages; Standard General Ledger Modules; Selecting General Ledger Accounting Software

  • Lesson 8:

Accounting Cycle; Tower Restaurant: A Computerized Demonstration; Conversion from Manual to Computer System; Journalizing the Monthly Business Transaction; Computerized Posting of the Special Journals; End-of- Month Accounting; Computation of Net Income or Loss; Computerized Financial Statements; Computerized General Ledger; Reversing Entries; Computerized Year- End Processing

  • Lesson 9:

Restaurant Income Statement; Significance of Restaurant Accounting; Food Sales Accounting; Beverage Sales Accounting; Cost of Sales; Operating Expenses; Restaurant Balance Sheet; Chart of Accounts for Restaurants; Food and Beverage Ratio Analysis; Food Sales Statistics and Analysis; Beverage Sales Statistics

  • Lesson 10:

Hotel Financial Statements for External Users; Hotel Income Statement for Internal Users; Departmental Statements; Revenue Accounting; Expense Accounting; Hotels with Casino Departments; Hotel Balance Sheet; Chart of Accounts for Hotels; Operating Ratios

  • Lesson 11:

Definition and Objectives of Internal Control; Internal Control of Cash Receipts; Internal Control of Cash Disbursements; Bank Reconciliation

  • Lesson 12:

Financial Statement Package; The Money Illusion; Overview of Analytical Methods; The Income Statement; Statement of Cash Flows

  • Lesson 13:

Governmental Authority on Reporting by Public Companies; Annual Report to Shareholders: An Overview

  • Lesson 14:

Evaluating Credit Card Acceptance; Processing Credit Card Transactions: The Merchant Account; Point-of-Sale Systems; Real-Time Credit Card Processing; Credit Card Fraud; Merchant Account Fees and Charges

  • Lesson 15:

What Is a Budget?; Sales Forecasting; The Relationship of Expenses to Volume; Variable Expenses; Fixed Expenses; Semi-Variable Expenses; Breakeven Point

  • Lesson 16:

Small Business Start-Up Assistance and Resources; The Franchise Option; Initial Planning Strategy; Insuring the Business