Starting a Forensic Accounting Firm Successfully
The two most sought after services in the accounting sector include forensic account and fraud investigation. Experts agree that the need for fraud detection services is growing at a fast rate. This is creating opportunities in the small and midsized firms that are looking to either start or even expand. 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.
There are two subsets in relation to forensic services including fraud investigation and litigation support services. You need to have a fraud investigation service if you have issues in relation to bribery, insurance fraud, financial statement fraud and corporate embezzlement. Litigation support services include contract disputes, business insurance claims, bankruptcy consultation and 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. 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. This is the reason why it is advisable that the firm focuses on the services they have the most expertise in.
Normally, the larger firms are considered to have a huge depth and breadth of experience. 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. An expert that has solid experience in the issue at hand is the best person to lead the engagement for the best results. The reason there has to be significant experience is because investigations are processes that are complex and if the client is to be at an advantage, then you have to involve serious expertise.
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. Independence is a key factor to ensure that there is credibility. 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.