Considering Bankruptcy? You Need a Forensic Accountant Today

Considering Bankruptcy? You Need a Forensic Accountant Today

Bankruptcy is never anyone's first option, but it is often their last resort. Even in the best of times, the economic landscape is changing under our feet and there may come a time when you or your business will need to begin bankruptcy proceedings. However, before you decide to proceed with bankruptcy you may wish to consider engaging the services of a forensic accountant to investigate the viability of your business as well as to discover anything that might become a larger issue when brought to court.

Why Do You Need a Forensic Accountant?

A common issue faced by public and privately owned companies that experience financial troubles is that financial statements and records can be excessively complicated. Sometimes this complexity can conceal easily-solved problems. Most financially strapped companies do not land in such trouble overnight, so the root of insolvency may be found months or even years in the past and creep up so slowly that everyone in the finance department couldn't even discern the warning signs. Clarifying the situation that led to bankruptcy is one area where a forensic accountant can help a great deal.

How a Forensic Accountant Can Help Your Bankruptcy Proceedings

A forensic account's job is to get to the heart of the matter no matter how much chaos the company finds itself in the middle of. Things in the company may be shutting down due to an inability to pay bills on time and non-essential personnel may have already been let go, taking with them all of their insight into the situation. Loans that were taken out to service other liabilities may lead to a complex maze of overdue financial housekeeping that has been put on the back burner while cash flow problems were taking up everyone's attention. In order to successfully survive a major bankruptcy, you need to rule out fiscal malfeasance and fraud as reasons for the insolvency. The services of a forensic accountant can identify the evidence of financial pressure points that brought your company to this juncture even as they work to rule out these instances of wrongdoing.

KA Forensic are internationally recognized experts in forensic and investigative accounting. Our team is led by Jim Kinsel (CPA, CFF, CF) and it would be our pleasure to help your company through this difficult financial period. Contact us today for an initial consultation.