Of all the complications your business might encounter, those involving finances are the most intimidating. In some cases, people within your company could be to blame for your hardships. Luckily, forensic accounting allows business owners to sniff out economic issues and, if necessary, successfully present the evidence in court.

An Introduction to Forensic Accounting

What Is It?

Unlike standard accounting practices, forensic accounting involves economic matters that may give rise to or are already part of legal disputes. These specialty accountants use their mathematical skills in an investigative manner to uncover evidence about a financial event. These financial and non-financial findings are considered suitable for use in court, and they may reveal proof of misconduct, such as fraud.

Why Is It Important?

Due to a growing rate in cyber crimes, it’s become easier for executives, hackers, and criminals to make false adjustments to accounts, taking money from companies or other individuals. Even employees within a company may steal from the business itself, making it harder for owners to detect threats. Luckily, forensic accounting professionals work proactively to identify fraud and other white collar crimes before perpetrators can do irreparable damage.

Forensic accountants also have the skills and time to carefully comb through your financial records and conduct investigations. By adding these professionals to your team, you could save your company from scandal and substantial losses.

When Is It Needed?

Forensic accounting professionals work in two capacities: litigation support and investigation. The first is required when a legal dispute involving your company arises, and you need financial evidence to be used in court. In this situation, a forensic accountant can provide a thorough presentation of economic events so that you can resolve disputes in a courtroom with confidence. If you hire a forensic accountant to conduct an investigation, they’ll peruse your financial records to identify cases of false statements, insurance fraud, identity theft, embezzlement, or hidden assets.

If you’re interested in securing forensic accounting services, contact the team at Tudor Wilson & Associates CPAs in Honolulu, HI. These professionals have served Oahu businesses since 1999, and they’ve continued to master their skills in investigation and litigation support. View their services online, or call (808) 592-2000 to schedule an appointment.