This is an except from my book: 101 Entrepreneur Questions and Answers.Consider that there are different rules depending on what country you live in and it is best to get a professional's advice on things like tax and accounting.Understand and recognize what expenses are tax deductible, most companies will spend more money freely when their end of year is coming up. Meaning that they will spend more money on things that are tax deductible, because otherwise if they don't spend it, the money will be spent through them paying taxes.Recognize that there is a difference between your personal taxes and company taxes. Here in Britain I am a sole trader, which means that my personal income is subject to tax, whether from my book royalties, dividends or company wages. A company also has tax on its profits, and most expenses can be used to reduce the tax bill at the end of the fiscal year.I personally keep a record of how much money I have spent over each month, by keeping a record I can manage my expenses. I also keep a record of the income and invoices in the company, this is good bookkeeping practices and good to manage and gauge my successes.Question of the day: how are you handling your accounts?