How to Start 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.
Fraud investigation as well as litigation support services are the two subsets in relation to forensic services. Bribery, corporate embezzlement, financial statement fraud and insurance fraud are some of the issues taken care of under fraud investigation. Litigation support services include contract disputes, business insurance claims, bankruptcy consultation and 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. As a small or midsized firm, it might not be possible for you to take each of the engagements on a high level. There are areas that the firm has expertise in and here is where the firm needs to focus on.
It is common to find that the larger firms will be associated with higher experience in most of the matters. 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. It is important that independence is observed so that credibility is not impaired. If you put administrative tools to manage engagements, you will develop a standard investigation. This will be used by everyone in the company for the future engagements. Consistently getting good results will get you more clients.