Convince him that closing entries are necessary?

Question

Your friend owns a small sole proprietorship. He does his own bookkeeping, although he did not finish the chapter on closing entries before he went to work. He mentions to you the closing entries look like they take a long time. He wonders why he should bother to do them, because all he really looks at is the checkbook anyway. Convince him that closing entries are necessary.

Answer 1

I suppose it depends on what his business is. My husband and I each have a sole proprietorship and don't do closing entries. Our expenses are very low and easy to subtract from the income. So I can't convince him that the extra paperwork is necessary. :)

Answer 2

Let your friend run his own life, he will find out if these things are necessary or not, but either way, it is not YOUR problem