Starting a Forensic Accounting Firm Successfully
Forensic accounting and fraud investigation are the two most sought for services in the accounting sector. Experts agree that the need for fraud detection services is growing at a fast rate. Therefore, the small and midsized firms have an opportunity to capitalize if they want to start or even expand the business in this sector. It will take time for the forensic accounting practice to stabilize and you will need to be patient. The reason for this is that the services as well as the clients are unique. 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. Your brand has to be associated with quality if your clients are to trust you.
Forensic services is split into two subsets including litigation support services and fraud investigation. You need to have a fraud investigation service if you have issues in relation to bribery, insurance fraud, financial statement fraud and corporate embezzlement. 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. 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. The quality of services that you provide should be able to bring in business and gradually build a reputation. If you are able to have someone with the best expertise in the area lead the engagement, you will be at a great advantage. If you involve a huge depth of experience, the client is going to be at an advantage as investigations are complex matters.
The AIPCA’s statement on standards for consulting services are the ones to guide all the forensic accounting engagements. You should forget that all the other standards considered basic also apply for example planning, supervision, professional care and competence. It is important that independence is observed so that credibility is not impaired. 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. You will be able to get more clients if you are able to give positive results consistently.