Forensic accounting has gained more recognition because of the increase in white-collar crimes and financial frauds. Forensic accounting is composed of auditing, accounting, and investigative skills. As a result, there is a growing need for accountants especially in government, insurance companies, banks, and other agencies. Because forensic accounting involves investigative skills, there are various instances where it becomes important. The first instance where forensic accounting becomes important is when it comes to cases dealing with shareholder disputes. Normally, there are various cases where issues amongst shareholders arise and this is where forensic accounting comes into play to make sure that the accounts have been audited and all shareholders have received all their dues equally. The reason why shareholder disputes arise is when shareholders with few shares face wrongful termination or are subjected to unequal earnings.
When it comes to divorce cases, a forensic accountant examines the documents from both parties and this is what helps the court with determining who will handle child support. Apart from deciding the person to handle child support, forensic accounting also helps in determining the sharing of property between the two parties. When it comes to divorce cases, what an accountant does is revealing financial information about a spouse and this is what becomes useful during property valuation. In past instances where forensic accounts have been used, they have unearthed unknown assets. Apart from handling divorce matters, forensic accounting also comes in beneficial when it comes to sorting fraud cases. There are many companies whose reputations have been damaged because they have been associated with fraud cases. In turn, a business loses many customers and their profit margins come down. In such instances, a business needs to engage the services of a forensic accountant who will be tasked with undertaking a comprehensive investigation to determine the extent of the damage.
Lastly, a forensic accountant helps in solving money laundering cases. Through their expertise, they can trace and recover assets that could have bad people. To get these services, you need to hire the services of a good forensic accounting company or individual. Because of the increased demand for these services, you find that there are some firms or persons that claim to be good at this work, yet they are not. One of the factors that you should check out for is their knowledge and experience in this field. Forensic accounting entails a lot of things and you need a firm that understands what needs to be done so that you can get the best services. The second aspect that you should look for in a forensic accountant is their ability to offer advice on the business-related issues that you have. A good accountant will manage to pinpoint the inconsistencies that exist within the business and provide strategic leadership. Also, a good forensic accounting firm will provide a free consultation to its first-time customers. It is during this time that you can tell if you will work with them or not. Finding an accommodative and understanding forensic accountant is the best thing for your business.