How to Start a Forensic Accounting Firm Successfully
Some of the services that are on high demand in the accounting industry are fraud investigation and forensic accounting. Experts agree that the need for fraud detection services is growing at a fast rate. If you are a midsized or small company, you have an opportunity in this industry to start or expand. You will need to be patient if you are to stabilize in the forensic accounting sector as it takes time. The reason for this is that the services as well as the clients are unique. 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.
There are two subsets in relation to forensic services including fraud investigation and litigation support services. 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. The clients are divided into the specific industries which determine how the matters are going to be resolved. The forensic practice will grow through choosing the right cases carefully. Performing at a high level for each of the engagements will not be possible for the firm especially if it is small. This is the reason why it is advisable that the firm focuses on the services they have the most expertise in.
Normally, the larger firms are considered to have a huge depth and breadth of experience. Developing a niche for the small firm will enable the small firm compete with the large firms. The quality of services that you provide should be able to bring in business and gradually build a reputation. 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 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. It is important that independence is observed so that credibility is not impaired. 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.