Maintaining a proper and accurate record of your business finances, will keep your business in a proper financial shape. On the flip, disorganized accounting practices can cause an otherwise excellent business to lose speed and even close their doors. Not only does it hinder cash flow, but it 
also affects your relationship with the suppliers and customers, possibly leading to fraudulent practices and creating tax issues.
How do you sort your cash flow consistent and avoid tax issues, here are a couple of guidelines that will help you to evaluate your accounting needs.
Cash is KING!
As cash is fuel for your business; you’d never want to run empty. Make it a point to periodically checking how much cash you have at that point of time ie: money in the bank. Having a clear idea of how much you are likely to receive and how much you are going to pay vendors is also equally important.
Remember, Cash is king. Read more about this here.
Recording the transactions
You also should ensure that your transactions are perfectly recorded. These transactions include the invoices going to customers, the cash received from customers, the amount you pay to suppliers. You need to have a clear idea about the accounts, either daily or at least weekly.
Preparing and sending invoices
Make sure that the payment terms are included while sending the invoices. If the terms are 30 days, it must be reflected on all invoices. Without a proper due date, you will have more issues in expecting the revenues for the specific month. This due date, when done properly, can offer important information which customers have or have not paid and for how long. A way to encourage prompt payment is to offer early payment incentives. This however also needs to be tracked.
Managing your cash.
You need to have a clear idea about your cash business transactions. This is slightly more tricky to ensure 100% accuracy. It is vital to have it 100% accurate. Make sure that they are completely accurate every week or at the longest monthly. As you reconcile cash it becomes much easier to find and correct any error or adjustments, this helps in getting them corrected right away.
Analyzing the status of your inventory
If you do have an inventory, set some time aside for reordering the products that can be sold quickly. Likewise, you will also have to identify the others that are slowly moving and either must be marked down or completely dismissed. By regular checking, it also becomes easier for you to make adjustments, further ensuring that you are neither short nor overloaded.
A stock count must occur on a regular basis. Depending on the stock, even a daily stock count should occur. This ensures no errors are being made but more importantly, no theft is taking place.
An evaluation of your accounting processes is critical. It is advisable to review it regularly.
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