To improve the accuracy of 7 by 10/12/14/16 lathes there are some well known recipes.
They include:
A rigid base/table: wood is nice for mounting a vise, but a lathe needs something with less flex and does not distort with temperature and humidity. If the table/base has dimension which shift/twist/expand/shrink, then that tends to have the same affect on the lathe itself. My lathe sits on a 3/4 inch stone slab (If you use stone, the most preferred for dimensional stability is Granite. If you use steel, you want it thick, and if possible angle or Beam. It should be Bolted down to your rigid surface, as versus "resting on the surface". This way, rigidity of the "ways" of the lathe are enhanced.
Once your lathe is on a solid stand/base *LEVEL* it, and we aren't talking about with your hobby level, but with a good quality Machinist's level. There are all kinds of discussions in this forum about what level of accuracy is needed, but, for the short length of a 7 by X lathe, one of the .005 of an inch quality levels (Such as a Starrett 98-12) in my opinion is more than sufficient. Borrow this expensive tool, as versus buying it if you are starting out on a budget.
The bearings in the Head of the lathe are not terribly great from the factory. Those who want the least-fuss method switch to "angular bearings" replace the headstock bearings. Those who want to go all out, use tapered bearings, but tapered bearings are Thicker, and require a keyed spacer (slid on the spindle) to be made thinner, otherwise the gears don't line up... but the final way is the best choice. You can buy that 11mm spacer from LittleMachineShop.com (LMS), and reduce its thickness Before you start the bearing swap process, or, you can machine the spacer (really a thick washer with a keyed notch in it.
Gibs for cross feed and compound are of poor quality/fit/finish. They are typically iron/steel, and not perfectly smooth or exceptionally flat and parallel. Once again LMS has a nicely made Brass Gib kit which can be purchased and installed. While on the topic, some people lightly stone and deburr the Ways of the lathe and the Dovetails in the compound and cross feed. For the dovetails, you will need a quality 60 degree stone. For the Ways, there is a small plate under the Way which secures the carriage, and the factory arrangement for this plate tends to make it pinch and rub the bottom of the ways at an angle. There is a variety of adjustments/shims/plate-modifications which are posted here to make things better.
Finally, test it, there are a list of common accuracy tests for lathes. Most involve cutting a long rod which is 1 inch or thicker, and then cutting deeper in the middle of the rod, which leaves the ends thicker. Then you go back and do a light skim on the rod at both ends without changing your cross feed position. Then you carefully measure both ends to see if the diameter is the same, becomes thinner towards the tailstock, or bells out (widens) towards the tailstock. If the diameters don't match, then you must decide if the Error is high enough that it merits loosening the bolts on your headstock and tweaking the position of the headstock to improve the accuracy. This first test is done without using the tailstock. Then when you "think" you have it in the right position, you tighten the nuts which secure the headstock, and do some test cuts to confirm your tweak moved it in the right direction, and the right amount. After driving yourself mad for a while doing this, and you are happy, a similar test is done with the tail stock, with adjustments to the tail stock.
There are more things which can be done, but these are the most common steps done to "accurize" a mini lathe. I am adding two pictures. The first is a picture of my mini lathe resting on a stone base, the second is of a metal keyed spacer (I made two of different thicknesses to be safe) made on the same lathe prior to installation of high quality tapered bearings.