Leaking cash? Follow these bookkeeping tips

Start the new year on a positive foot

Neat, tidy books can be the difference between healthy cash flow or closure, says Mustafa Ahmed, CEO of MSF Associates.

The Leeds-based accountant who’s worked with hundreds of hospitality business owners to simplify finances and make better, data-driven decisions, shares his tips for an easier future.

Better books make tax easier

Most hospitality owners panic at year-end because they ignore the numbers all year. Block 30 minutes weekly to update sales, expenses and bank transactions. It keeps your records fresh, VAT accurate and avoids last-minute stress. Bookkeeping works best when it’s part of your weekly business rhythm, not a yearly task.

Beating heart of your business

Clean cashbook, sales invoice and purchase invoice records are the lifeblood of your operation. Record every sale, purchase and bank movement in one of the popular cloud systems. Ditch paper and random spreadsheets because with real-time data, you instantly see what’s working and what needs attention before HMRC ever get involved.

‘Money owing’ counts

Poor cash flow kills more restaurants than bad food. Check who owes you money weekly and who you owe in return. Use the reports section of your software to track both. This will help you manage supplier relationships and plan payments without having to panic because you’ve run out of cash.

File and record receipts

You can’t claim what you can’t prove. Apps like Apron or Dext let you snap and store receipts in seconds so there’s no need for shoe boxes or faded bits of paper. Keep VAT receipts for every expense, tag them and store them digitally. Your accountant will love you for it.

Monthly matters

Even small cafes and takeaways need monthly reports. A simple profit and loss shows what’s really happening behind the counter. You’ll spot overspending, price issues or supplier leaks early. Think of it like tasting your food before serving. Check your numbers before HMRC checks them for you.

Are apps worth it?

Automation will only save you time when it’s set up right. Link your bank feed, till system and any receipt capture tool and let technology handle the boring bits so you can focus on running your business. One hour setting up apps will save you five a month.

Bookkeeper benefits vs costs

A bookkeeper keeps things tidy. An accountant helps you plan, save tax and grow. Together, they’ll help you stop guessing your profit. If your turnover is rising or you’re VAT registered, it’s time to invest in professional support. It costs less than the mistakes that happen without it.

Best practice bookkeeping

Numbers only matter if you understand them. Review your reports monthly and stay curious. When you know where the money’s going, you’ll make smarter decisions. I see my role as helping hospitality owners turn messy books into clear insights that build profit and confidence. Simple really.

Find out more at msfassociates.co.uk