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Great Benefits of Having a Forensic Accountant Within an Organization
The role of a forensic accountant is very significant in any business setup. These experts have the best skills to ensure that they have established fraud and other malpractices in any business setup. They make sure that they have looked at the financial statements of any organization on top of accountant roles like bookkeeping. Those people who own small businesses might not have the budget to hire one of the best forensic accountants. Such organizations would choose to hire an internal accountant to look into all the functions that a forensic accountant could have handled. However, an accountant can only perform the roles of forensic accountants if they are well-trained. The law demands the organizations to ensure that they have performed frequent forensic audits to curb the issues of malpractices. There are a few benefits that you will get when you choose to work with the best forensic accountant. Look at this article to read a few of these benefits.
First, you are assured of strong internal controls when you choose the right forensic accountant. What are internal controls? Well, these are policies in any organization or procedures that help in the control of how business resources are utilized. Or, internal controls can be defined as procedures in any business that prevents the use of illegal functions. Internal controls help any business not to undergo loss while improving its operations. We have several internal control activities such as safeguarding the assets of an organization, ensuring integrity and reliability of financial records, and risk management. When you hire the service of a forensic accountant, they will ensure that they have looked into areas that are at great risk of fraud. They ensure that they have done a forensic analysis to make sure that the operations of your business are safe and protected. Other than this, these professionals will also make sure that they have carried out a risk assessment procedure and guide you in some of your business areas that need more internal controls. They can perfectly handle this since they are experienced and have the best understanding of internal processes. For example, they can ensure that they have tracked the sales of your organization through a computer system to guarantee stock taking, inventory figures, and sales.
Secondly, forensic accountants help in the acquisition and debtors. A considerable number of small businesses choose to make use of acquisition as a growth approach, yet a majority of them don’t have financial statements that are well audited. As a result, these businesses decide to use tax returns. The only issue here is that tax records don’t have the required information as owners work on minimizing the tax obligations. While you hire the services of a forensic accountant, you will be sure that they will help you in acquiring your business financial statements and transactions and ensure that they have analyzed whether your business is worth as stated in your tax records. To add to this, if your business has trade credit transactions, then you can hire the services of a forensic accountant to analyze the credit value and the liquidity of the debtor.