Fnancial record keeping on the financial performance in hotel businesses in Uganda

Abstract

Laico Victoria Hotel keeps financial records and the researcher wants to establish whether these financial records are accurate, timely prepared and audited. Although management of Laico Victoria Hotel has Board of Directors together with the management have tried to statement controls, the problems still exist. Hotels have continued to experience management problems such as funds problems, payment schedules not respected, low quality foods prepared, empty rooms due to lack of customers, powerful competitors, high prices of materials used and the inflation rate like the increase and reduction in the foreign currencies tried to recruit accountants, train staff, put in place computers, policies and procedures to hand financial records. The study assessed the relationship between financial Record keeping and financial performance under three objectives; find out the effects of quality financial record keeping on the financial performance in Hotel businesses, analyze the measures of financial performance in Hotel businesses and establish the relationship between financial record keeping and financial performance in Hotel businesses. The researcher used quantitative approach which was administered through questionnaires. The total sample comprised of 37 respondents which included staff of Laico Victoria Hotel. Random sampling technique was used whereby the researcher went to Laico Victoria Hotel and administered questionnaires to the sampled staff. Findings reveal that financial record keeping is mainly due to record keeping which is a major financial management tool in Laico Hotel. Laico Hotel has a financial Record keeping policy of posting all entries, closing off all the books and auditing books on the daylily basis and ensuring that no financial information is left out. My recommendation is that Laico Hotel should improve the financial record keeping policy governing the preparation of financial statements, since it is the basis of financial record keeping. In conclusion financial record keeping in Laico Hotel is not to standard which there for affect the quality of financial performance as they do not conform to Accounting standards.