Hiring a forensic accountant may have you feeling stressed because you’re unsure about the financial commitment. Each case is very different, making it impossible to say exactly how much it will cost to hire a forensic accountant. However, there are some important yet simple steps you can take to find the right expert and help yourself reduce the time spent on your case, thus keeping more money in your pocket.
Hire a Qualified Forensic Accountant
It can be tempting to hire the forensic accountant who is most affordable, however, using price alone may end up costing you the outcome of your case. As such, it’s important to do your research prior to hiring an expert forensic accountant. Look for the following qualifications:
- CFF designation (Certified in Financial Forensics), which is awarded to CPAs in good standing with the American Institute of CPAs and demonstrates far-reaching experience and expertise in the practice of forensic accounting
- Other related designations or certifications, such as Certified Forensic Accountant (CR.FE), based on what your case requires
- Robust knowledge of accounting and financial analysis
- A track record of proven expertise in your specific industry/area
- Extensive knowledge of the applicable laws
- Good oral/written communication skills
- Experience providing expert witness testimony
- Strong interpersonal skills to foster a solid working relationship with you and your attorney
It can also be helpful to request to view a sample work product similar to your situation. This can help you better understand what you can expect to receive when working with the forensic accountants you are considering.
Secure a Forensic Accountant Early in the Process
Retain a financial expert as early as possible so he or she is not rushed, especially if complex analysis and a report are required. By doing so, you can save money by allowing for a more effective discovery process. You will also be giving your expert forensic accountant more valuable time to identify the documents you may need and assist you with preparation. If you wait too long, you could find that the qualified expert you wanted has already been retained by the opposition (especially in certain industries or areas where qualified experts are limited).
By retaining a forensic accountant or litigation support specialist late in the process, you also limit the time the financial expert has to help the counsel understand complex financial issues, develop strategy, and devise opposing expert questions for upcoming depositions or for trial.
Work Proactively with Your Forensic Accountant
You can minimize costs by developing a good working relationship with your forensic accountant. The more open and cooperative you are, the less time it will take your expert to gather the needed information. Here are some things you can do to make your forensic accountant’s job easier:
- Be sure to show up on time for any scheduled meetings so there is adequate time to talk through the details of the case.
- Answer any questions asked as truthfully and thoroughly as possible, even when it is difficult or uncomfortable. While you may not think that some details are important, they may actually matter a great deal to your case.
- Keep a journal handy to write down any helpful details that you recall as you go through this process so you can communicate them with your forensic accountant. Sometimes these small details can lead to large breakthroughs.
- Provide all the requested documents in a timely fashion. (See additional tips for submitting documents below.)
Guidelines for Submitting Important Documents
When retaining a forensic accountant or a litigation support specialist, you probably have a large volume of information that needs to be reviewed. Many times documents submitted to forensic experts are in complete disarray. Below are some tips to help you save money.
- Organization: It is extremely important to get your documents organized. Many forensic accountants end up spending hours organizing the records and information before they get to the point where they can start their analysis. If you have boxes of documents, create an index of what is in each box. If you have electronic files, make sure the folders and sub-folders are organized. This is an enormous money saver.
- Consistency: When you submit documents, make sure they are all in the same media format. For example, if you have printouts and electronic files, convert everything so it’s in the same format. This will save your expert time converting files. Also make sure you convert all files to the same type, for example, all documents should be PDFs. Remember, time equals money.
- Authenticity: Keep information in the original format and don’t redact full account numbers. If you are nervous about submitting documents with your account numbers, redact everything but the last four digits of the account number. Forensic accountants need to be able to tie and match documents to each other and redacting or “whiting out” information will only delay the process. Also, when submitting bank statements, be sure to include all pages of those statements. Eventually, the forensic accountant may ask for them.
When you are in the research phase, before hiring a forensic accountant or a litigation support specialist, take the time to get all of your questions answered. It’s important that you understand how your team of specialist can best support you and also how you can best support them. These tips will help you get pointed in the right direction and save money!
Veriti Consulting LLC provides various fraud and forensic accounting services for individuals and businesses across the United States. Veriti is also a licensed private investigation agency. To learn more about the types of fraud and forensic investigative services we offer click here or call 855.232.4410.
Related Forensic Accounting Articles:
