A forensic accountant does more than just work with numbers and file taxes. Also known as financial forensics, it’s an area of accounting where professionals investigate whether individuals or businesses have been engaging in financial misconduct. This line of work combines investigative skills, accounting, and auditing. When the job is done, it can result in criminal charges and jail time for those found guilty. 

If you’re interested in this fascinating career path and would like to learn more, you can read some of the most exciting facts about forensic accounting below: 

There’s High Demand

Most people already have a great need for a tax accountant in Australia, New Zealand, the United States, and other parts of the world. However, there is also a growing need for forensic accountants. 

Employee theft is on the rise. Just 26% of small businesses say they’ve never experienced internal theft. Over half of small business retailers had money or physical products stolen. This increase in theft and suspected theft has seen many businesses enlist the services of forensic accountants to get to the bottom of it and hold those responsible to account. 

It Can Take Years of Study

There’s more to becoming a forensic accountant than undertaking an accounting program. It can be a multi-step process involving years of working your way up to an expert forensic accounting position.

Most accountants start by completing a bachelor’s degree in accounting and adding forensic accounting classes to their workload. Upon graduating within around four years, they can enter an entry-level accounting position. However, many employers looking for forensic accountants require their applicants to have graduate certificates in forensic accounting.

You Can Teach Prevention

Being a forensic accountant isn’t just about identifying financial irregularities and fraud. It can also involve teaching businesses how to prevent financial crimes in the first place. They can work with companies to help them implement better internal controls that may prevent costly crimes in the future, such as: 

• Segregating financial duties 
• Restricting and monitoring financial system access
• Performing regular reconciliations 
• Having strong multi-factor authentication and password policies 
• Providing fraud awareness training
• Establishing whistleblower policies 

The Work Is Varied

Being a forensic accountant means that every day is different. You may be called up to provide expert testimony in a courtroom one day and be required to visit a private firm the next. Forensic accountants also work in various settings like government agencies and law enforcement. They are involved in a variety of investigations for corporate fraud, criminal cases, and civil disputes. 

Many forensic accountants are even called upon to help with bankruptcy proceedings, divorce settlements, and insurance claims. ‘Boring’ is certainly not a word you’d use to describe this career path. 

You Rely On Technology

Technology plays a significant role in many financial crimes. However, it can also be integral to identifying those crimes and stopping criminals in their tracks. Most forensic accountants use data analytic tools and software to identify potential irregularities. Tech can also be helpful for sifting through vast amounts of data that may otherwise take several hours or days to read through. 

Most forensic accountants use: 

• Communication tools
• Document management systems
• Cybersecurity tools
• Machine Learning 
• Artificial Intelligence 
• Blockchain analysis tools 
• Digital forensic tools
• Accounting software
• Fraud detection software 

Forensic accounting is a fascinating and multifaceted field that allows criminals to be found out and punished for their crimes. While it can take several years to become an experienced forensic accountant, it’s ultimately a rewarding field with variety every day. 

Guest writer.