Helping my Business
How can a forensic accountant help my business?
In this article I explain how a forensic accountant can help a business owner at various points in the company’s life cycle.
As forensic accountants we are typically instructed by lawyers to assist their clients on cases including divorce, family disputes, commercial disputes and professional negligence. However, we are also often instructed directly by company owners to assist the directors. These engagements include commercial valuations, fraud investigations, internal audit and insurance claims. Sometimes, as forensic accountants and business valuers, we are introduced to a company by the external accountant to provide specialist independent input.
Business fraud
A recent survey revealed half of all businesses had been victim to fraud in the previous year. Of the frauds reported, nearly 40% were instigated from within the business by a trusted employee or director. As forensic accountants we can investigate suspected fraud and provide an estimate of the financial loss. My personal advice to business owners is to trust your instinct and if you are concerned about a possible internal fraud, get independent advice promptly. I have seen frauds escalate quickly if not dealt with promptly.
We can provide guidance on internal controls and highlight areas of weakness where practical changes could reduce the risk of fraud or errors.
We also provide ad-hoc or regular internal audit checks to give business owners and charity trustees confidence in their internal processes.
Commercial valuations
We are regularly instructed to value companies for litigation and divorce. However, we also value companies for commercial purposes.
A commercial valuation could be to assist in implementing an employee share scheme or employee ownership trust. Alternatively, it could assist in raising finance or obtaining new investment. It might also help in valuing the shareholding of an exiting director or employee.
A valuation helps the company owners to understand the current value of the business and what are the key drivers of the value. This can be invaluable for strategic planning or tax planning.
Insurance claims
Finally, we can assist businesses in assessing losses for insurance claims and providing an expert opinion to the insurance company.
Conclusion
In conclusion, as forensic accountants we can assist in several areas including commercial valuations, fraud investigations and insurance claims.
Getting in Touch
Fee estimates and CVs are readily available. Quotes can typically be provided within two working days.
Email: fiona@fhmforensic.co.uk
Telephone +44 (0)7770 642491
