Forensic Accounting Fundamentals: Can It Help Your Business?

Forensic accounting is a specialized discipline in the accounting field. Those who are trained in forensic accounting know how to spot, isolate, and trace back inconsistencies in accounting records. They can help to uncover embezzlement, accounting errors, misappropriation of funds, and so much more. However, most business owners don't understand the value of forensic accounting and don't call for a specialist like this when they could really use one. Here are some situations when you should consider hiring a forensic accountant.

Is There Money Missing?

One of the most common reasons for a business owner to hire a forensic accountant is if they've discovered money missing in the corporate accounts. If it appears as though someone has been funneling money out of your company's business account, or if the numbers in your financial reports don't seem to add up, a forensic accountant can audit all of those records. Not only will the forensic accountant be able to isolate the problem transactions, but they can also advise you as to the extent of the problem in both the duration and the total cost. Ultimately, your forensic accountant's information may help you to catch the person responsible.

Are You Considering A Merger?

Another common reason for business owners to retain the services of a forensic accountant is if they are planning or thinking about a merger. If you have been thinking about it, it's important that you have a forensic accountant audit all of your books and provide you with a statement of accuracy. That provides you with some leverage for negotiations as part of the whole process. You may be able to negotiate a better merger deal if you've already handled the forensic accounting process.

Do You Want Ongoing Protection?

Some business owners are worried that something could inadvertently happen without their knowledge, only uncovering it after it's too late. As a result, some preventative measures can be beneficial. For example, you may decide that you want to keep a forensic accountant on staff to monitor your company's financial records for ongoing consistency and accuracy. With a full-time forensic accountant on your staff, inconsistencies will be flagged right away, allowing you to potentially save your business substantially in ongoing money losses.

These are a few of the situations where a forensic accounting specialist can help. No matter what the reason why you're concerned about your company's financial records, it's in your best interest to address that concern as soon as possible. Talk with a forensic accountant near you today for more help.