Starting a Forensic Accounting Firm Successfully
Forensic accounting and fraud investigation are the two most sought for services in the accounting sector. The need for fraud detection services is growing at a high rate as most of the experts agree. This is creating opportunities in the small and midsized firms that are looking to either start or even expand. Usually, for you to build a stable forensic accounting practice, it will take 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. 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. On the other hand, you will need litigation services for bankruptcy consultation, business insurance claims, contract disputes and any shareholder divorces. Clients will normally fall into different industries, and this is the easiest way to make sure that the cases are resolved as quickly as possible. For you to develop the forensic practice, you will have to select the cases carefully. 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. It is an advantage for you to walk into an engagement with a team led by someone that has solid experience. The investigations can become complex and this is why there has to be significant experience that puts the client at an obvious advantage.
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. This will be used by everyone in the company for the future engagements. Consistently getting good results will get you more clients.