I've heard that one of the down-sides of underreporting is that, if in the future you want to get a business loan, you won't be able to claim as much past/futur

I've heard that one of the down-sides of underreporting is that, if in the future you want to get a business loan, you won't be able to claim as much past/future cash flow, so the bank won't extend you as much credit. For a plumber who plans to avoid debt, maybe that's fine. For another business that depends on leverage, like real estate, it could be disadvantageous, overall.