Forensic Accounting in Business Litigation | Tax CPA Houston
- Author Jim Trippon
- Published April 19, 2010
- Word count 431
Forensic Accounting in Business Litigation - Your Secret Weapon
Knowing what your business competitors are up to is an important part of strategy, but when it comes to litigation forensic accounting is indispensible. Forensic literally means used in a court of law or for public debate. When we combine accounting skills with legal knowledge, it is called forensic accounting.
The Elements of Business Litigation
The underlying cause of most business litigation is money and finance. The claims and counter-claims in a court have to be justified by facts and figures. Since the main element of business litigation is primarily finance, it is essential that one is aware of the opponent's true financial position. For this, we need a professional accountant who can analyze the balance sheets and accounts which are made public. Through this analysis process, you can understand the exact nature of financial transactions of a business.
Another important element, in addition to accounting knowledge, is to present data and financial figures acceptable to a court. Not only should the information be clear and precise, it must also meet basic court requirements. Forensic accounting is therefore your secret weapon in financial litigations. One more vital aspect which you must bear in mind is the liability of different parties. The assessment of financial loss a business incurs due to the financial transactions between each other can only be assessed by a professional accountant by auditing the financial statements of both the litigants. The court will base its judgment on the facts and figures presented. Forensic accounting is therefore a specialized field which combines the financial, auditing and investigative aspects of a business entity and gives a legal framework to the entire process.
Forensic accounting in business litigation not only covers litigation between two businesses but also within organizations. Financial frauds and misappropriation of funds by employees forms an important part of forensic accounting. Identity thefts have become rampant in this modern digital era. Credit card frauds and impersonation, Phishing and other online crimes have increased over the years. Forensic accounting can help significantly in such litigations.
Business litigation essentially involves financial accounting. A deep understanding of financial documents, balance sheets, business accounting and auditing is required to expose frauds and misappropriation. Presenting accounting information in format which appeals to a court of law is an important part of forensic accounting. A professional CPA can uncover details which can prove to be your secret weapon in business litigations.
Call us today at 713-661-1040 and let us put our experience to work for you. Protecting your bottom line is our top priority!
For more information about Tax Solutions for you and your business contact http://www.taxcpahouston.com/ or Call Jim Trippon Tax CPA - at 713-661-1040 and Put our 25 plus years of experience to work for you TODAY!
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- The Advantages of Incorporation for Realtors: Safeguarding Your Financial Future
- 10 essential tax-saving strategies for landlords: Maximise your rental income
- A Comprehensive Guide to Navigating the Process and the Role of Customs Brokers in the UK
- Outsourced Accounting Services for UK Businesses: A Cost-Effective Solution for Financial Management
- Top 8 Self Assessment tax return software
- How to Close a Limited Company in the UK
- Maximizing Your Finances: Unleashing the Power of CPA Services
- VAT penalties – New rules
- TAX-FREE STRATEGIES IN AN UNCERTAIN ECONOMY
- 2022 Energy crisis and failure to connect Reality.
- When Are Corporate and Personal Taxes Due in Canada in 2021?
- You Would Never Have Thought That Having Accounting Internship Could Be So Beneficial
- ACTIVATION OF UAN
- Focal motivations behind getting a Tax direct for Small Business Firms
- Avoiding the flood — tax issues with water rights in agribusiness
- Social security benefits for a family (COVID-19)
- How to use QuickBooks Component Repair Tool?
- Do you want to reduce your taxes for next year?
- Will you be responsible with your tax refund?
- Getting started with QuickBooks Enhanced Payroll in Brief
- Are DSTs Right For Your 1031 Exchange
- Tax Return Makeovers By Kenya Woodard
- Why have all crypto tax attempts failed?
- Are You a Corporation? Know Why Consulting a Tax Accountant Is Vital
- Share capital or share premium for your Dutch company?
- Everything investors should know about 1031 sponsors
- Why is the income tax so high in UK?
- Should I do my own tax return?
- Get More Money Back on Your Tax Return with help from the Tax Cuts and Jobs Act
- Don’t Fall Victim to these 3 Tax Scams in 2018