I will list a few reasons that have been drawn from my group's research.

Keep track of your company's growth.

To keep track of your company's success, you'll need solid records. Records can reveal whether
or not your firm is growing, which things are selling, and what improvements you should make.
Good records can improve the chances of a company's success.

Get your financial statements ready.

To generate accurate financial accounts, you'll need reliable records. Income (profit and loss)
statements and balance sheets are examples. These statements can assist you in dealing with
your bank or creditors, as well as in managing your company.

Determine your revenue sources.

Money or property will be given to you from a variety of sources. Your financial records will
reveal the sources of your revenue. You'll need this data to distinguish between business and
nonbusiness receipts, as well as taxable and nontaxable income.

Keeping track of your deductible spending is important.

If you don't keep track of your costs as they happen, you could forget about them when it
comes time to file your taxes.

Keep track of your property's base.

For tax purposes, your basis is the amount of your property investment. You'll utilize the basis
to calculate the profit or loss on a property sale, exchange, or other disposition, as well as
depreciation, amortization, depletion, and casualty losses.