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Why do small businesses need accounting records

by | Nov 29, 2023 | Posted Questions

Why do small businesses need accounting records?

Baker Construction is a small corporation owned and managed
by Tom Baker. The corporation has 21 employees, few creditors, and no investor
other than Tom Baker. Thus, like many small businesses, it has no obligation to
issue financial statements to creditors or investors. Under these
circumstances, is there any reason for this corporation to maintain accounting
records?
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