Forensic Accounting : Does Your Business Need It?

November 20, 2016 9:57 pm1 commentViews: 42

By : Dan Radak

forensic_acctgAt first glance, forensic accounting seems like something not even remotely related to your business. But this is not some CSI-level practice you see on a silver screen. Basically, it is a process of using various accounting techniques in order to solve legal problems. Hence, there’s a wide range of possible applications to your company. After all, fraud is a possibility in almost any business, and those who choose to sweep problems under the carpet quickly find out that they only tend to become bigger.

Down for a count

Forensic accountants deal with cases of fraud and money embezzlement, performing investigative duties. Moreover, they provide litigation support for police officers and lawyers, preserving the vital pieces of evidence. Also, this type of accounting has evolved over time and broadened its scope. There are now many instances in which it proves its worth to entrepreneurs. In fact, forensic accounting has become the mainstay of fraud prevention in the business world.

Not only that, a forensic accountant also comes in handy when you seek to sell your business and require proper valuation. The professional comes up with an accurate estimate, and plays an important role when you want to expand your business. Namely, buying another company can be tricky if you do not scratch the surface and assess its financial health. What you need are deep insights into the real story about the organization and the reason it is being sold.

Numbers game

Forensic accountants are versed in the big numbers game, and have a nose for inflated figures, false incomes, and unrealistic profit estimates. Likewise, they aid the companies in unraveling other schemes and hoaxes in the business world. Cloak-and-dagger tactics are not uncommon, and forensicthere are many ways others can go about stealing money from your business. Take the example of suppliers overcharging you for the delivered products – or an inside job, when managers, accountants, and bookkeepers are squandering money.

With the staggering amount of data being stored electronically in companies’ systems and cloud, forensic accountants can harness this pool of information to dig deeper and inspect all kinds of transactions. Now, you can not only get to the bottom of unwanted occurrences, but also take extreme measures against their perpetrators. So, every time you sense something fishy is going on, do not hesitate to call professional forensic accounting and litigation support services. Let the experts review and analyze information and produce independent detailed reports.

They can go through any bill, record, or other document to pinpoint every single missing dollar. The losses may seem marginal at first, but over time, they can eat a big chunk of the budget and put your organization in dire straits. Ultimately, even disasters like bankruptcies can come about. Thus, you are better off carrying out a full financial check. And in the case of a fraud, it is always preferable to have a pre-arranged sequence of events kick in rather than to be out for blood. The obvious losses are usually the tip of the iceberg, but if you engage the right professionals, you can also uncover its cold depths.

Every step of the way

Despite the lack of understanding in the business world, forensic accounting can be an indispensable asset to any organization. This branch of accounting is not just linked to serious crime, and there are times of trouble when every businessman could use a forensic accountant. They investigate the cases of deceit and hoax, and aid in identifying the right measures against them. What you get is a strong support for your efforts to make sure everything is in working order. So, stay on the safe side, save your nerves and financial security, and ensure that every penny is accounted for.

 

Dan Radak is a marketing professional with ten years of experience. He is a co-author on several websites and regular contributor to BizzMark Blog. Currently, he is working with a number of companies in the field of digital marketing, closely collaborating with a couple of e-commerce companies.

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