Whatever field of business you are in, it is of paramount importance that your financial affairs are kept in good order at all times. Erroneous accounting can lead at the very least to nasty surprises and in the worst case scenario to prosecution. Excuses are rarely accepted for shabby accounting or incomplete documentation.
Of course not everybody going into business is going to be adept at figures. If there are any concerns that you will not be able to keep good, up-to-date and accurate records then you should think about engaging an accountant to manage your financial affairs. It is often said that a good accountant will save you more money through the legitimate minimization of tax liability than you will pay out to him or her in fees.
If you think your operation is too small to warrant taking on somebody to look after your financial affairs then at the very least it is always a good idea to invest in some decent accounting software. There are some excellent packages on the market which make light work of business accounting and they are surprisingly inexpensive to buy and easy to use.
The most important outgoing to get right is always going to be income tax. Paying the government its dues is absolutely a statutory obligation and cannot be side-stepped. As soon as your business is launched it is advisable to set up a separate account to pay taxes into pending payment. If you are not entirely sure as to how much you are likely to owe it is better to overestimate than to be short – you will be able to get it back later.
Beyond paying tax a successful financial strategy is really about responsible budgeting, being mindful of outgoings before they are due and making sure they are covered. In money matters, prudence is the key to business success.