What do you get when you combine investigation with accounting and auditing? You get the exciting field of Forensic Accounting. The word forensic means “suitable for use in a court of law,” and that is the high standard that Forensic Accountants are held to. Forensic Accounting provides an accounting analysis that is suitable to a court of law and is used to help resolve both civil and criminal cases. Forensic accountants often have to give expert evidence at trial.

What is a Forensic Accountant?

Forensic accounting encompasses three main areas: litigation support, investigation, and dispute resolution. Litigation support represents the factual presentation of economic issues related to existing or pending litigation. In this capacity, the forensic accounting professional quantifies damages sustained by parties involved in legal disputes and can assist in resolving disputes, even before they reach the courtroom. If a dispute reaches the courtroom, the forensic accountant may testify as an expert witness.

Investigation is the act of determining whether criminal matters such as employee theft, securities fraud (including falsification of financial statements), identity theft, and insurance fraud have occurred. As part of the forensic accountant’s work, he or she may recommend actions that can be taken to minimize future risk of loss. Investigation may also occur in civil matters. For example, the forensic accountant may search for hidden assets in divorce cases.

Forensic accounting involves looking beyond the numbers and grasping the substance of situations. It’s more than simple accounting, and more than basic detective work. Because of its unique elements, it is a combination that will be in demand for as long as human nature exists. Who wouldn’t want a career that offers such stability, excitement, and financial rewards?

Becoming a Forensic Accountant

The first step toward becoming a Forensic Accountant is taken by earning a Bachelor’s degree in accounting. This is a standard four-year degree available at most colleges and universities, and many now offer this degree as a distance learning option online.

Next, you must prepare for and sit for the Certified Public Accountant exam to become a CPA. There are also online prep courses available to help you easily pass your CPA exam.

Once you’ve earned your Bachelors in Accounting and passed the CPA exam, you can begin practicing as a Forensic Accountant. However, to have the best foothold in the field (as well as the best salary) you might also consider graduate school. A Masters Degree in Forensic Accounting is now available, both as a traditional Masters degree and also as a Masters of Business Administration with a focus in Forensic Accounting. Earning a graduate degree serves dual purposes-it further trains you for work in the field, and also helps to fulfill the continuing education requirements that are needed to maintain your CPA status.

You will find that additional coursework in areas like law enforcement and criminal justice is usually required, and some legal training is helpful. Additionally, you may want to pursue an accreditation as a certified fraud examiner (CFE) from the Association of Certified Fraud Examiners. This is a nationally recognized accreditation similar to the CPA designation.

Last but not least, you also may want to pursue the Certified Forensic Accountant (CrFA) accreditation. While this may seem on the surface like a slam-dunk, in actuality this is a fairly new certification and not every Forensic Accountant has it. As the industry continues to evolve, however, it may well become the standard.

Forensic Accountant Career Outlook and Salary

Forensic Accountants work in most major accounting firms and are needed for investigating mergers and acquisitions, and in tax investigations, economic crime investigations, all kinds of civil litigation support, specialized audits, and even in terrorist investigations. Forensic Accountants work throughout the business world, in public accounting, corporations, and in all branches of government. Forensic Accounting firms are everywhere.

If you do an Internet search, you’ll find article after article worrying that the demand for Forensic Accountants far outstrips the current supply. This translates into an anticipated growth in this field of nearly 25% over the next ten years! You would be hard pressed to find a more stable and in-demand career.

You will most likely start out earning between $30,000 and $40,000 a year, according the Bureau of Labor Statistics. But after just a few years of experience in the field, you can easily earn $70,000 to $80,000 a year. At the highest levels, particularly in the private sector, forensic accountants can command $125,000 to $150,000 annually.

Forensic accountants are professionals who use a unique blend of education and experience to apply accounting, auditing, and investigative skills to uncover truth, form legal opinions, and assist in investigations. If this sounds like you, consider a career in Forensic Accounting-you won’t regret it!

It is important to do your due diligence before purchasing your new small business accounting software. Even the most popular accounting programs may not be the right fit for your situation, thus it’s imperative to do your research. Here are a few essentials to consider that can help in ensuring that you make the right choice to fit your business needs.

1. Talk to your accountant or a professional that you trust. Often times your accountant is aware of financial management software that is essential for your business and one which can provide the information you need managing your specific accounting needs as well as financial management of your business.

2. Your size of business in terms of your annual sales is something to consider. If your business sales are $100,000 a year, then your accounting software needs will be much different from that of a business which has net sales of $1 million annually. Considering the size of your business ensures that you don’t invest in a system that’s complicated and at the end of day doesn’t generate the simple information that you need for your organization.

3. Level of support – when purchasing software keep in mind that you’re going to need ongoing support after implementation. This is especially true if you’re running a one man shop and/or if you don’t have an IT person on your payroll. So be sure that any software you choose has ongoing support, also be aware of any additional costs for technical support such as hosting fees, etc.

4. Choose software that provides upgrades and patches for bugs that are discovered after you purchase the software. Be sure to inquire of any additional charges for upgrades.

5. Is the software you want to purchase compatible to other software being used in your business? Is it customizable for your business and allows for potential business growth?

6. Ease of use and reliability – It’s important for your accounting software to be reliable and easy to use. You want to be able to generate reports quickly and also want software that doesn’t require a degree in information technology just to be able to use it on a daily basis.