Question

Explain Two reasons why a client may request an accountant from an accounting firm to compile their financial statements?

Answer 1

Two reasons, why a client may request an accountant from an accounting firm to compile their financial statements are:-

1. It is easier for the client to keep an eye on the profitability of the organization on daily basis, so that losses can be avoided by changing the policy during the year.

2. It becomes easier to track the payments to be given and collections to be recieved, as accountant can tell in minutes about all the balances of the respective parties after compiling the financial statements