How to get started in the exciting world of Forensic Accounting by EPCI Unviersity!

In today's world of complex tax codes, electronic banking, fraud, and identity theft, there are few career paths with the upside of forensic accounting. Businesses and individuals in this constantly-changing environment face a multitude of challenges when it comes to protecting their financial information while simultaneously staying efficient and streamlined so they can compete in a demanding business world.

Tools like cloud computing and robust internal networks are becoming more popular, which is great for team work and efficiency. Unfortunately, however, they also come with a variety of weaknesses and a need for qualified professionals with an in-depth knowledge of how to oversee financial records in this new niche of the accounting industry. Enter: the forensic accountant.

What is Forensic Accounting?

The simplest way to explain forensic accounting is to think of it as financial detective work. While working as a forensic accountant, it will be your job to dig deeply into the financial reports of companies and individuals to determine proper valuations, uncover wrongdoing, or put together timelines to explain the numbers to non-accountants, like judges or investors.

Some of the instances in which forensic accounting is needed:

  • Mergers and Acquisitions - Any time one company is looking to merge with or acquire another company, the party making the acquisition will want to know exactly what they are buying. That may seem straightforward at first glance, but the company being acquired also wants to maximize their valuation so that they get the best deal possible. The forensic accountant, therefore, takes on the task of digging deeply into their financials to determine an accurate assessment of the assets, liabilities, reporting practices, and overall valuation, which then allows the acquiring company to evaluate all of the information thoroughly and make a well-informed business decision. 
  • Civil Lawsuits and Criminal Cases - Forensic accountants are vital to both the civil and criminal justice systems. The courts need skilled professionals who can sift through months or even years of financial data and understand whether there was anything illegal or inappropriate occurring. It is an opportunity to do some good and identify the "bad guys" who might otherwise get away with financial crimes and wrongdoing.
  • Corporate Auditing - Large national and multi-national companies often need forensic accountants to come in and take a detailed look at the financial reports and trends within their smaller companies and branches. They may have internal auditors who do the day-to-day audits, but sometimes they need an objective opinion from someone who can come in and see the reports from a different angle to find something the typical, average auditor might miss.

Will I be a Good Forensic Accountant?

The American Institute of Certified Public Accountants (AICPA) understands the growing need for forensic accounting. The organization polled hundreds of attorneys, CPAs, and professors to find out which traits and characteristics made forensic accountants successful.

The top three characteristics they identified were:

  • Analytical
  • Detail-Oriented
  • Ethical

If those traits describe you fairly well, then chances are you won't have any problem learning the most important skills that you'll need to possess:

  • Ability to simplify information.
  • Auditing skills, meaning the ability to understand what the numbers say.
  • Effective oral communication of your findings.
  • Identifying and focusing on the most vital pieces of data.
  • Possessing investigative intuitiveness.

The first four bullet points are listed above are skills that can be learned with a good education in a quality bachelor's degree program, but the fifth bullet is purely a talent. They ability to notice when something is not right, even though it might not be obvious to most people looking at the same data, is what will separate the best forensic accountants from the average performers. 

If you are the type of person who can learn and develop the skills that are necessary to excel in this profession, all you have left to do is take the steps to pursue this lucrative career.

What are My Job and Career Prospects?

In 2013 CNN found that forensic accounting was among the Best Jobs in America. All signs suggest that the job outlook has continued to improve over the last three years and should continue that trend for as many as ten more years.

The overall accounting market is projected to grow by eleven percent (11%) through 2024, which outpaces most other industries.

What’s the Salary of a Forensic Accountant?

As with most industries, your income potential will vary depending on your skill level and dedication to your craft. However, forensic accountants are typically able to make more per year than standard accountants. According to the Association of Certified Fraud Examiners (ACFE), an uncertified forensic accountant could make a median annual income of $90,634. There is also potential to earn significantly more with experience and additional certifications.

Becoming a Forensic Accountant

Are you interested in a career in forensic accounting? Contact ECPI University TODAY for more information about earning your Bachelor of Science in Business Administration with a concentration in Accounting. It could be the Best Decision You Ever Make!

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Gainful Employment Information – Accounting - Bachelor’s

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