Art is a business as well as a creative endeavor. Losing your art can be a financial loss. So can not being aware you are losing money because you don’t keep track of costs.
Over a lifetime, all of us will probably create hundreds of pieces of art. When first starting out, it may seem a waste of time to develop this kind of recordkeeping, but when you are trying to remember which landscape of Monterey or which painting of magnolias out of the 15 you painted in the past 20 years that you entered into a show, you will come to see the value of good records. If you keep a record and the Art information sheet updated you will always have a documentation of your work and where it has been.
However, if you keep good records you probably won’t lose track of your art and try and re-enter art into a show you have already exhibited in. (This can be very embarrassing when the show director calls you to pick up your artwork and then complains that you keep entering the same piece year after year.)