Starting a Forensic Accounting Firm Successfully
The two most sought after services in the accounting sector include forensic account and fraud investigation. Most companies are now needing fraud detection services and most experts agree that there is a need for the services now more than ever. This is creating opportunities in the small and midsized firms that are looking to either start or even expand. You will need to be patient if you are to stabilize in the forensic accounting sector as it takes time. Since the clients are different and unique, it is the reason why it takes time to stabilize in the sector. 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. The fraud investigation consists of financial statement fraud, corporate embezzlement, insurance fraud and bribery. Litigation support services include contract disputes, business insurance claims, bankruptcy consultation and 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. As a small or midsized firm, it might not be possible for you to take each of the engagements on a high level. 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. 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. 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. 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.