What do all successful small businesses have in common? Feel-good stories would have you believe excellent products or services are the hallmarks of corporate prosperity. But that's not always true.

It's savvy financial management that separates the wheat from the chaff. Obviously, running a great business is more than balancing the books. But business owners with poor financial management will collapse into bankruptcy from any matter of monetary woes.

Want to build a business with a fighting chance? Read this helpful guide and discover the basics of small business financial management.

1. Start Bookkeeping

Bookkeeping is no doubt the most important component of small business finances. For one, it's essential when it comes to making accurate tax payments every quarter and itemizing at the end of the year.

But businesses large and small also benefit from keeping a close eye on financial performance indicators. These include some of the basics such as gross revenue, expenses, and net profit. It's a good idea to keep your eyes on these numerics from month to month to gauge the health and success of your new small business.

If you've hired employees, you'll want to update the books weekly rather than monthly. You'll be able to locate payroll and cash flow issues in advance, allowing you to take advantage of payroll funding services. Failing to do so could lead to disgruntled employees and serious fines.

2. Create a Business Bank Account