If you've found yourself with a financial stake in a lawsuit, divorce or other legal case, then it's time to consider hiring a forensic accountant. While searching for forensic accounting firms in New Jersey, consider your needs in regards to both accounting and legal expertise. Often, there are hidden assets or debts omitted from financial statements and other documents that may be revealed during a thorough investigation by a forensic accounting firm.
Still wondering if your specific case requires the help of forensic accountant? Here are five reasons to start a forensic accounting investigation in NJ:
1. Find and preserve evidence.
Ideally, you should begin a forensic accounting investigation as soon as you suspect something is wrong with finances, whether they are concerning your company or your spouse. A forensic accountant can begin to look for evidence that is related to any financial crimes, hidden assets or other disputes. Once the person responsible for financial misrepresentation, fraud or other negative actions finds out about the investigation, they may attempt to conceal or dispose of evidence. You should also collect any documents that you think will help the accountant in an investigation, such as financial statements or contracts and agreements.
Since financial documents contain valuable information about assets, properties and other valuable commodities, a forensic accountant is able to analyze this data to use as evidence to make their case for a client. For example, an accountant can determine the value of assets or losses and damages to use during civil disputes. If you require a forensic accounting investigation in NJ, consider hiring a firm that has extended years of experience presenting their findings and testifying as an expert in a courtroom setting.
2. Investigate criminal actions.
When clients suspect their employees are stealing money or defrauding the company, they can hire a forensic accountant to investigate these claims. These and other criminal actions, such as money laundering and embezzlement, require an intensive investigation into how they are taking money and where these funds are going. A forensic accounting investigation in NJ will require staff who are highly trained in both accounting and legal concepts with a skill for detecting criminal behavior. Forensic accountants combine their abilities to perform extensive research and collect information to discern the most important pieces of information that will lead them to the people responsible for criminal actions.
A forensic accountant will trace transactions by combing through financial records and statements as well as help recover losses. Not only will a forensic accountant analyze documents about the crime, they also help in cases involving employee fraud by interviewing workers who were granted access to funds to identify possible suspects in the case.
3. Locate hidden assets and recover losses.
In the case of criminal investigations and civil disputes, assets may be hidden for personal gain. These assets may be transferred to another account that is not mentioned in financial statements and it’s the job of a forensic accountant to evaluate these types of claims.
In addition to hidden assets, some individuals or companies may attempt to cover up debts to make it seem like they have greater income or net worth.
Forensic accountants are often hired to evaluate and calculate the financial losses. They can track down where these assets are and recover them for their clients.
4. Secure money and assets during a divorce.
As clients are in the various stages of divorce, they encounter the difficult task of dividing assets. A forensic accounting investigation in NJ aims to help clients settle the case and comply with equitable distribution rules to ensure fair distribution of all assets. Since disputes involving marital assets often occur because of disagreements about who gets what. A forensic accountant will investigate financial records that are integral to planning and negotiating a settlement. Forensic accountants will locate and consider assets and secure money their clients are entitled to during the divorce process.
Since both parties will likely argue over which is more deserving of these assets post-divorce, a forensic accountant will aid clients in finding hidden assets and unreported income. One spouse may have had more access to these assets than the other and may have taken the opportunity to minimize their value or even hide them from their financial records. Through an investigation into their spouse’s records, clients are in a better position to negotiate a settlement that will help them live a comfortable life after divorce.
5. Settle shareholder disputes.
A forensic accountant can also step in if shareholders have disagreements about key financial issues like contracts and compensation. When conducting a forensic accounting investigation in NJ, accountants will have to keep in mind rules specific to the state.
Forensic accountants are usually hired to help settle disagreements between minority stakeholders who may feel like they are under compensated. Accountants might also have to estimate the value of the company through valuation provide a basis for a shareholder buyout.
In other scenarios, there might be accusations of fraud or deception among shareholders. A forensic accountant needs to find evidence before presenting the findings in a report.
As you consider whether you need a forensic accountant for your case, be sure to do your own research on firms offering forensic accounting investigation in NJ to determine the best one for you.
