Starting a Forensic Accounting Firm Successfully
The two most sought after services in the accounting sector include forensic account and fraud investigation. 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. Since the clients are different and unique, it is the reason why it takes time to stabilize in the sector. Focus on what the firm has strengths in so that you become a real competitor in the fraud detection industry. Clients will trust your brand more if you give the right quality of services.
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. Shareholder divorces, business insurance claims, contract disputes and bankruptcy consultation are just some of the issues that are handled through the litigation services. 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. However, the smaller firms can be able to compete effectively by developing niches of specialization. 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. An expert that has solid experience in the issue at hand is the best person to lead the engagement for the best results. The investigations can become complex and this is why there has to be significant experience that puts the client at an obvious advantage.
The AIPCA’s statement on standards for consulting services are the ones to guide all the forensic accounting engagements. Competence, professional care, planning and supervision are just some of the basic standards that should also apply during the engagements. Independence is a key factor to ensure that there is credibility. Successfully managing the engagements means that there needs to be development for a standard process of investigation by having administrative tools in place. This will be used by everyone in the company for the future engagements. Consistently getting good results will get you more clients.