There is no doubt that these 3 items: P&L, Cash flow & balance sheet are very important in business accounting but at what point should one start to prepare the balance sheet?
I believe after the first year of running the business.
You can also use a certain revenue bench mark.
@olumuyiwa_Stephen, a very interesting question.
I believe balance sheet is necessary as you start your business because it shows @ a glance the financial position of your business whether you making profit or not. It is very important to have the balance sheet after your profit & loss account and balance sheet summarizes the components of your Capital, Liabilities & Assets hence Liabilities+Capital=Assets, and you can’t run business without financial records : and to do otherwise can cause the business liquidation
My advice is that you can employ the service of an account clerk or a book - keeper @ the inception for proper financial records keeping.