For any business owner, the key to success is simple: knowing where your money comes from and where it goes.
Whether you sell a product or offer a service, having a deep understanding of your business’ finances gives you more power to make informed, effective decisions that fuel growth and help make each quarter more successful than the last.
The stronger your understanding of your business’ finances, the more capably you’ll be able to operate and grow. Enter the forensic accountant — the essential, often invisible component that can be found in every financially successful company.
We spoke to Alexander & Co, who have provided forensic accounting services to small businesses, corporations and partnerships in the Manchester area for 40 years, about the vital but often hidden role forensic accountants play in several common situations for businesses.
While most people associate the term “forensic accountant” with litigation, forensic accountants provide value to businesses that extends far beyond the courtroom. They can:
- Help detect fraud, whether from employees, investors, contractors or suppliers.
- Support in business valuation, whether for the purpose of raising capital or dissolving a business partnership.
- Resolving disputes between partners, shareholders and other parties with an interest in the company’s financial performance.
- Play an important role in settling claims from employees and non-employees, particularly personal injury claims that affect the company.
Benjamin Franklin famously said that “by failing to prepare, you are preparing to fail.” The most successful businesses in the world tend to prepare for the worst, be it in the form of a lawsuit, an unexpected development or fraud from within the company.
For those that don’t, the consequences can be serious. With a major UK hedge fund currently in the spotlight for its own fraudulent practices, the value of forensic accounting for UK businesses, both big and small, has never been more evident.