Why do small Businesses need Financial Statements?

Hello ! why do small Businesses need Financial Statements?
There are some questions extra shocking to an accountant than “ why do we need financial statements??”
When asked this question, many accountants can only give an uninterested answer that usually begins with muttering the phrase “performance measurement” and concludes with declaring small businesses need financial statements “because they do well.”
Here the performance measurement means the value of financial statements as a scorecard is twofold. The first one is financial statement provides an important index of performance that can use to review the success of your small business. The second index is financial statements bridge the knowledge gap between you and the outside world, which in turn reduces your small business cost of capital.