When you own a small business, it is imperative that you keep a good set of books that are consistently and contemporaneously updated. The tax man will not be satisfied with records that were thrown together at the end of a year.
Small-business owners usually start a company because they have a passion for a particular product or service. However, people should not open a bakery just because they love baking cakes. If you love baking, get a job as a baker.
Trying to run a business without good financial statements is like trying to call football plays without knowing the information on the scoreboard (score, quarter, down, distance needed for a first down, time remaining, etc.). Regardless of your coaching skills, it's impossible to call plays effectively under such circumstances. Yet, far too many small business owners attempt exactly this.