A forensic accountant is one of the best tools a large or small business can use to prevent criminals from harming them. Notably, they can give you an upper edge when it comes to protecting your business and seeking justice in the eyes of the law. However, should you use their services for your business? Consider these factors for hiring a forensic accountant.
- Theft and fraud
- Help sort through personal financial records
- Business evaluations
- Litigation support
Theft and fraud
One of the most important reasons to hire a forensic accountant is because you suspect fraud or theft to have occurred. If you believe there was foul play you should definitely hire a forensic accountant to perform an investigation. Fraud or theft can result in millions of dollars being lost, and devalue the company. Importantly, theft and fraud can occur not only in large corporations but small businesses as well. When you grow as business owners, there is the possibility that the internal mechanics will not be in place to catch someone who may be stealing from you. This means your company is not equipped with the proper training, tools, or individuals to catch fraud or theft. You can hire a forensic accountant from a private CPA firm to conduct an investigation into your finances to check, and help you should you pursue legal recourse for discovered activities.
It should be noted that a forensic accountant will gather financial evidence and conduct an investigation. This means they won’t just conduct an audit, they will also investigate for a crime. The forensic accountant may work in tandem with your litigation team. While an external audit will help you gain a clear view of your finances, it is not specially designed to look for a crime.
Help sort through personal financial records
With wealth comes multiple assets, confusing finances, and opportunities for criminals. Forensic accounting can help you spot potential areas you may be vulnerable, as well as navigate economic loss and damages. At the same time, a personal forensic accountant can help you look for personal financial misconduct when dealing with separation or divorce.
For example, let’s say that you are getting a divorce. You have multiple high-value assets and are a fairly well-off person. Your former significant partner is threatening to take everything you own in the divorce. However, a lot of the worry from such a threat can be mitigated when you hire a forensic accountant. A forensic accountant can help you:
- Sort through ownership of properties or assets
- Identify any misappropriation of funds if you own a business together
- Help your legal team gain a clear understanding of your financial situation
- Help navigate child support issues and alimony or spousal support.
If you are an individual who has high-value assets, don’t leave your personal matters only to chance. It pays to be as thorough as possible.
Business evaluations
A forensic accountant can help you analyze not only your business but others as well. When you enter into a merger or acquisition of another company, you want the full picture. Hiring someone to investigate fraud or theft can help you rest assured that you are making the right call. This will not only help you spot problematic areas of the company but ensure a smooth transition with the mechanics in place to spot illegal activity.
When it comes to bankruptcies a forensic accountant can help in two main ways. First, they can give you accurate information on your debt and management of it. Second, they can help you pinpoint any wrongdoing or stolen money in your business, helping you recover quicker.
Litigation support
As mentioned above, if you do choose to pursue any person or entity in a legal fashion, using the analysis of a forensic accountant is vital. That evidence can be presented in court, and help you win justice in the eyes of the law. Be sure you are ready for court by having the right financial information.
Are you considering hiring a forensic accountant for your business or personal finances? Do you suspect foul play or theft in your business? If so, Sheffield, Trackwell, and Rapp can help you with our forensic accounting. Contact us today to see how we can help your business grow stronger and safer.
