Update your business plan. Getting a good grip on your goals will raise questions about how you're going to finance them and when you're likely to need new capital. For help on writing a business plan, check out Planning Your Business in the Business Owner's Toolkit.

Organize your records. You can't run a business based on a shoebox full of receipts. Make sure your records are carefully filed by type of expense or income, with originals of crucial documents_deeds, contracts, insurance and estate plans_filed in a safe-deposit box.

Set up a tracking system. If you're not doing a monthly accounting of accounts receivable and accounts payable, you can't predict your cash needs. That's a formula for trouble, says David Grant, a partner and audits specialist at PricewaterhouseCoopers LLP in Albany, N.Y. Consider buying one of the more popular small-business software programs, such as QuickBooks, which tracks your finances and helps pinpoint problem areas. You can also check out our list of low-cost alternatives, known as shareware.

Hire a good bookkeeper. If customers say they never got billed or they already paid, it can be an early-warning sign of big internal problems. Perhaps your bookkeeper isn't up to the job or is stealing from you. Make sure the person who does the books daily is different from the person who reconciles the accounts.

Get free help. If you don't have a record-keeping system or current business plan and can't afford an accountant, call your local Small Business Development Center, or the Service Corp of Retired Executives. Many of their affiliates provide free or low-cost advice and assistance.

Strengthen your cash flow. Don't pay bills sooner than your creditors demand. If an invoice gives you 60 days, mail the check on Day 59. Send out your bills at the same time you deliver your product or service. Make payment terms as short as possible; 30 days is usually reasonable. Some companies offer their customers a cash discount for early payment, but a better strategy is discounts on future purchases. This costs you less money, preserves cash, builds customer loyalty, and avoids disputes with aggressive clients who tend to pay late but take the discount anyway.

Get the best rates. If you have idle cash, make sure it's in an interest-bearing account. If the cash won't be needed for several months, consider putting it into a Treasury security or CD.

Consider outsourcing. Payroll, accounting, and benefits can be handled by outside companies with expertise in these highly complex fields. Good ones are well worth the money. For details, check out stories from our archives and the Buyers Zone guide to payroll services.

Use credit-card debt sparingly. Many entrepreneurs use credit cards to start a business or tide it over in tough times. But it's very expensive money; as you build up cash, use some to pay down the credit-card balance. Keep a close watch on the national economic picture for signs of an upswing in interest rates, which could result in a higher payments for you.

For more information on managing your business finances, go to the SOHO Guidebook.

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