Cash Flow for The Sea View Hotel. Evaluate how using cash flow forecasts and financial recording systems can contribute to managing business finances at The Sea View Hotel:

Authors Avatar



Task 1

Cash flow forecast for The Sea View Hotel:

Task 2

Analyse the cash flow produced in Task 1, including the implications of the regular and irregular cash inflows and outflows for The Sea View Hotel:

The advantages of a cash flow are that you can view how much money is going in and out of your business every month. The cash flow for The Sea View Hotel shows that they are in loss for the majority of the year.

The inflow isn’t good enough and to improve this they should raise the price of the hotel rooms and food. To raise their inflow they could advertise and do promotions to get more customers/revenue in.

The outflows in some parts are big values, (the irregular cash outflows) which could be paid over time instead of all at once. They could reduce outflow even more by reducing the price of the food and utilities, and even change their insurers to a cheaper one. They have an irregular inflow for the refurbishments (£12000), but they spent over the money given (£15000), so more money went out than money went in.

Join now!

Task 3

Describe how each of the following financial transactions/documents could be recorded in order to prevent fraud in The Sea View Hotel:

  • Order Form: The purpose of the order form is to order goods from a supplier. It is completed by the buyer who then sends it on the company selling the required goods. This can be used if a customer claims something later on that they didn’t order or if they deny ordering something.

  • Delivery Note: The supplier sends the goods to the customer accompanied by ...

This is a preview of the whole essay