One of your first tasks as a new entrepreneur should be to open a separate bank account for your business. Don’t co-mingle personal funds in business accounts. Closely track all business expenses and income.

“One of the most important things for a small business owner to do is separate personal and business banking,” says Intuit’s Fred Grant, senior tax analyst.

Pay business expenses with business checks. If purchasing stationery and groceries, write separate business and personal checks. Deposit business income only in business accounts.

The Schedule C identifies expense categories—advertising, rent, office supplies, meals, etc. By separating those from your personal bank account, you can easily find necessary records. Tracking financial records is essential, and good record keeping makes tax preparation less agonizing.

If you don’t use conventional accounting methods or even a computer, you still need to have a systematic way to file invoices, expenses, accounts receivable, payroll and other financial records. Organize it so at least you understand what you’re doing and are able to find what you need.

But to enter the 21st century, computerize your accounting and tax records. The learning curve can be relatively high for accounting and tax preparation software. But such products are worth the trouble and ultimately save you hours of labor, to say nothing of potentially heaps of dollars.

Setting up the software and identifying categories in advance are most of the work. After that, it’s just a matter of making entries.

Tip: Don’t get backlogged. Enter financial information promptly. Tracking entertainment expenses, for example, can be a nightmare of reconstruction if you wait months, then attempt to recall names, dates and places.