Tips to Successfully Start a Forensic Accounting Firm
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. Therefore, the small and midsized firms have an opportunity to capitalize if they want to start or even expand the business in this sector. 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. Your brand has to be associated with quality if your clients are to trust you.
There are two subsets in relation to forensic services including fraud investigation and litigation support services. 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. The firm will not be able to perform at a high level in all types of engagements. There are areas that the firm has expertise in and here is where the firm needs to focus on.
Normally, the larger firms are considered to have a huge depth and breadth of experience. It is possible though for the small firm to make a niche they are specialized in so that they can compete favorably. 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. If you involve a huge depth of experience, the client is going to be at an advantage as investigations are complex matters.
The guidelines that are supposed to spearhead the forensic accounting engagements are the standards for consulting services as stipulated in the AIPCA’s statement. 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. You will develop a standard investigation process if you are able to put administrative tools to manage the engagements. The process will now be used for all the future engagements. Consistently getting good results will get you more clients.