March 2, 2017
Tips to Successfully Start a Forensic Accounting Firm
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. It will take time for the forensic accounting practice to stabilize and you will need to be patient. 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. If you are giving the right kind of services, the clients are going to trust your brand more especially if you are providing quality.
Forensic services is split into two subsets including litigation support services and fraud investigation. Bribery, corporate embezzlement, financial statement fraud and insurance fraud are some of the issues taken care of under fraud investigation. 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. The firm will not be able to perform at a high level in all types of engagements. This is the reason why it is advisable that the firm focuses on the services they have the most expertise in.
There is the element of huge depth and breadth of experience that is normally associated with the larger firms. However, the smaller firms can be able to compete effectively by developing niches of specialization. Building a solid reputation for the small firm involves giving services that are of high quality on a consistent basis. It is an advantage for you to walk into an engagement with a team led by someone that has solid experience. The reason there has to be significant experience is because investigations are processes that are complex and if the client is to be at an advantage, then you have to involve serious expertise.
The guidelines that are supposed to spearhead the forensic accounting engagements are the standards for consulting services as stipulated in the AIPCA’s statement. 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. You will develop a standard investigation process if you are able to put administrative tools to manage the engagements. All the future engagements will use the standardized procedure developed. Once you have been able to produce good results, you are on the right path to build a reputation.