Best workflow: multiple documents or multiple sheets?

I'm new to spreadsheets, but growing to like them a lot. One question I have is what the best practice is for maintaining things like a finance/income spreadsheet for multiple years — is is better to have a new sheet for every year, or to create a new document? Currently I am just using multiple documents, using the previous year's as a template. But I've been wondering if you long-time users can shed some light on how you think this is best handled.

@Jerrold - thanks, this was another thing I was wondering about (bloat/speed issues over time). Currently I am doing exactly as you mentioned, pulling in sheets from the previous years, then calculating stuff based on totals -- since I don't really need most of the detailed info for year-to-year comparison.
Thanks for the counterpoint, these are the kinds of things I am trying to weigh before I make any changes in my workflow.

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