Forensic account analysis. Even just saying it, you get the sense that it’s complicated right? And to a point you’re right – but it doesn’t always have to be. Forensic account analysis is something that all businesses should know about, no matter what your size. It can often be imperative to the health and success of your business your organisation, but more often than not the complex nature of forensic analysis prevents people from learning about it. To try and remedy this particular issue, we’re going to be taking a look at what you need to know about forensic account analysis here and now.

So, What Is Forensic Account Analysis?

To begin with, we need to understand what a forensic account analysis is before we can work out what it’s used for.

First, you need a forensic accountant. This is a person who has been trained not only as an accountant, but in the detailed study of accounts to detect criminal activity. This person will go through a series of financial documentation from a business, analyze them for anomalies and report any inconsistencies that could point to a crime being committed. Forensic account analysis isn’t a commonly needed service – but it’s something that needs to be done right when you do need it.

The process itself is divided up into three distinct categories – the litigation support (where the accountant gathers information to help with bringing a case against a business), the investigation of the documents themselves, and then the potential resolution of the dispute which prompted the research in the first place. At every stage, the forensic account analyst is there to provide impartial evidence and support for their client.

How Would A Forensic Account Analysis Be Useful?

There are many situations that might prompt a forensic account analysis. All of the cases are when someone thinks a crime has been committed, but even within that broad term, there are many specific signposts. Suspicion of theft, money laundering and embezzlement are all examples of when a forensic account analysis may be required. The objective is to establish guilt (or a lack of) of the accused, and identify where someone has committed an immoral or illegal act and attempted to cover it up (or ‘cook the books’).

Why Would My Business Need This Service?

There are many different reasons why your business would benefit from such a service. Identifying theft or deception in a prompt manner is crucial for making sure that whoever has committed the crime is stopped before they are allowed to get away with it, and can rescue both the financial health and reputation of your business. This is essential in smaller businesses, especially where a chunk of money going missing could make a big difference. Of course, you need to consider the fact that if someone does something once, they’re more likely to do it again if they feel that they can get away with it. The very act of investigating the discrepancies will often scare these people away from committing further offences, and help to keep people aware that there are consequences for their actions.

It also gives you a much-needed backing in the event that the dispute goes to court. The financial accountant who located the evidence to substantiate the claims would be required in many instances to testify in court, as well as an independent analyst who can confirm the findings. This means that if a company has to take an employee or client to court in order to settle the dispute, they will have the backing of an independent source, which can be very reassuring to a lot of people.

At Debtcol, we provide forensic account analysis and reporting on an outsourced, independent basis. Our experts are trained in forensic analysis, financial accounting and private investigations, helping you get to the truth of an issue before you go to court. We are dedicated to providing impartial advice and support, whenever you need it. For more information, just get in touch with us today.