Why should a business close its books? Dream Builder is a business that specializes in building custom homes, remodeling existing homes, and creating backyard paradises. Dream Builders has just...

Why should a business close its books?

Dream Builder is a business that specializes in building custom homes, remodeling existing homes, and creating backyard paradises. Dream Builders has just completed its first year of business, and Shane Wilson, owner and manager, has been very pleased with the first year of operations. The business is growing and even earned a profit. Shane has just met with the company’s accountant, Felicia Turner, to go over the books for the year and to get ready for next year. Felicia has told him that he will need to close the books for the current year before he can begin recording transactions for next year. Shane is very confused. He doesn’t understand and tells Felicia, “I’m not planning on closing our business. It’s doing great. Why would I need to close the books?” What should Felicia tell Shane?