I would say that you don’t. Who said you have to? You would want to, yes, but you hardly have to. 

If regulators drive the obligation then they’re interested to see how your business is going and most of all, if you’ve calculated all your taxes properly.

Now, besides the officials who based on your local legislation require you to report on your business, you’d want to account for number of reasons. Most of them we’ve already covered – you’d know your assets, liabilities and earnings for the period to put into simple and short words. With accounting you could also however compare yourself with other companies that are in similar business and you’d also be able to determine your future plans – if you can invest into new machinery for an example or if you can expand your business. You can also budget your future period results and even cash flows – whether they are about to flow in or out.

Long story short, accounting is your business’ bread and butter. To keep it going, you need accurate accounting. I know it seems I’m going over and over it, but that’s how it is. It’s so important and sadly often forgotten or overlooked.