Don’t Think Your Company Needs Forensic Accounting, Think AgainAll Articles
Company fraud or theft can happen without you even realizing. Fraud can mean a number of things including embezzlement, employee diversion of cash, improper use of cash from the company, etc. Even though you know you’re not guilty of committing fraud, hiring a forensic accountant could make or break your company down the road.
What is forensic accounting?
Forensic accountants analyze and interpret complex financial situations. These accountants are often hired in legal situations to aid in the lawsuit.
Fraud can happen when you least expect it. Whether you’re a thriving company or ending a partnership, fraud exists. It could be a shareholder that was responsible for managing accounts and started to spend company money for personal use. When you and your partner split and dissolve the company, you’re going to need to know where all money went to.
Even with your current business, fraud can be present. It’s smart to hire a forensic accountant to be another set of eyes on all money going out as well as coming in. You don’t want to be punished for something that could have been avoided had you had someone looking at all transactions.
The problem with most businesses is that they don’t want to admit there could be a problem such as fraud or theft occurring inside their own walls. Simple forensic accounting begins by auditing financial records and risk areas are presented then.
Even if fraud or theft isn’t occurring quite yet, forensic accountants can find potential risks that could lead to a problem later on. Even if you don’t think your company needs forensic accounting, you do.
Here at BIG, we specialize in auditing financial records, company methods and employee structures to prevent potentially dangerous activity.