Due diligence accounting is the process of reviewing the financial reports and records of a potential business partner or target. It allows you to accurately assess the risks and opportunities associated with the transaction. A due diligence accountant takes a thorough look at the company’s financial statements, such as balance sheets and income statements, in order to evaluate its overall health, cash flow, debt obligations, and compliance with relevant laws. They also review past financial performance and make projections to determine how the target company will perform going forward. Through their detailed analysis, they can provide invaluable insight into whether a proposed transaction is a good deal for both parties.