Starting a Forensic Accounting Firm Successfully
Some of the services that are on high demand in the accounting industry are fraud investigation and forensic accounting. The need for fraud detection services is growing at a high rate as most of the experts agree. If you are a midsized or small company, you have an opportunity in this industry to start or expand. Usually, for you to build a stable forensic accounting practice, it will take time. The reason for this is that the services as well as the clients are unique. To become a real competitor in the area of fraud detection, you must look at the strengths that your firm has and focus on these. Your brand has to be associated with quality if your clients are to trust you.
Fraud investigation as well as litigation support services are the two subsets in relation to forensic services. The fraud investigation consists of financial statement fraud, corporate embezzlement, insurance fraud and bribery. On the other hand, you will need litigation services for bankruptcy consultation, business insurance claims, contract disputes and any shareholder divorces. So that matters are resolved quickly and efficiently, clients are usually divided into specific industries. Choose each of the cases you are going to handle carefully for you to successfully develop the forensic practice. Performing at a high level for each of the engagements will not be possible for the firm especially if it is small. It is therefore critical that a smaller practice define the expertise and their specific services.
There is the element of huge depth and breadth of experience that is normally associated with the larger firms. It is possible though for the small firm to make a niche they are specialized in so that they can compete favorably. If you are in a position to give services that are of high quality on a consistent basis, you will build a solid reputation for the company. It is an advantage for you to walk into an engagement with a team led by someone that has solid experience. If you involve a huge depth of experience, the client is going to be at an advantage as investigations are complex matters.
Forensic accounting engagements have to be performed in accordance with the AIPCA’s statement on standards for consulting services. Competence, professional care, planning and supervision are just some of the basic standards that should also apply during the engagements. To ensure that there are no questions in relation to credibility, there should be independence. If you put administrative tools to manage engagements, you will develop a standard investigation. The process will now be used for all the future engagements. Consistently getting good results will get you more clients.