A good accounting system has many elements but it all starts at the beginning. If it is not set up correctly, it can cause you problems later on down the road. Proper record keeping is also important so that you can monitor the progress of your business, respond to requests from your lender(s)/investors, and prepare the necessary tax filings… and help you in the case of an audit by a tax authority. Without a properly set up set and accurate set of accounting records, you are opening your business to considerable, unnecessary risk.
Here is a great article on setting up an accounting system for your business: Accounting & Financial Management from MyNewCompany.com