Why might a company keep multiple sets of books?

A company may maintain multiple sets of books primarily for compliance with different accounting standards or for managing various depreciation methods. Different regulatory environments or financial reporting requirements might necessitate variations in how assets are valued and depreciated. For instance, the Internal Revenue Service (IRS) in the United States allows for different depreciation methods for tax reporting, such as straight-line or double-declining balance, which may differ from what the company presents in its financial statements in accordance with Generally Accepted Accounting Principles (GAAP).

This practice allows the company to create accurate financial statements that reflect the organization's economic activities under various frameworks. Companies might also use different books to track performance metrics specific to internal management needs, industry standards, or compliance with international financial reporting standards (IFRS).

Other options may relate to operational decisions or customer relationship management but do not address the primary purpose of maintaining multiple sets of books in relation to accounting standards and regulatory compliance.