Businesses are at different levels. Some are big while others are very big. Similarly, at small levels there are many which are actually micro or very small businesses. They are mainly run as proprietary or self employment type businesses. They are mainly dependent on one person or family. They may keep a few helpers but it is mainly one man show. The incomes are low or so to say not very high. These people tend to not report income or not keep books, assuming that it is not necessary. It may not be necessary when you are small or when you want to be small.
But if you think about progress or going further, then it will come down to expanding your business. When you go to expand your business, normally you require funds. When you go to look for funds - they will ask your history. AND HERE COMES THE NEED TO KEEP BOOKS OF ACCOUNTS. If you have kept your books of accounts, you might be able to show turnover. If you show turnover & profits, you may be able to show that you need funds to grow your business. And then you may get loan. But if you don't have any books, then it might be difficult to get a loan.
It is always a good idea, be it a small clinic or lawyer's office or a consultant or a beauty parlor or fashion store. Keep your books and maintain records. They will not only help you in keeping tracks of your business, but also for external party.
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