Forensic accounting is a highly specialized field where experienced and skillful accountants with strict confidentiality principles are involved in a robust investigation of financial information that aids attorneys, insurance companies, law enforcement, and individual clients.
Forensic accounting has a lot of value in insurance claims and fraud investigations. Forensic accountants can help with depositions and mediations and provide expert testimony in high-profile insurance claims and fraud cases. They can also help in determining insurance claim costs. As a result, quality Forensic Accounting Services in TX are in high demand.
Here’s everything you need to know about forensic accounting and its value in insurance claims.
Forensic Accounting in Business Interruption Claims
When a business has sustained damage, there’s a period of restoration depending upon the severity of the loss. A business may halt its operations during this period or partially shut down. This impairment often results in a loss of important revenue and profits. In most cases, companies file a business interruption claim.
However, business interruption claims can be pretty complex, with various revenue streams affected, and it can be hard to determine the causes behind variation in net income by merely looking at tax returns and statements.
A forensic accountant dives deep into these statements and looks for causes and their impact on revenues, costs of goods sold, and expenses. They also determine whether these changes are material enough or correlated to the covered peril.
Forensic Accounting in Property Damage Claims
There’s much more to forensic accounting than evaluating a business interruption loss. When working on property damage, they schedule, review, and analyze damage repair invoices and correlated support.
These accountants review contracts of contractors and subcontractors to determine whether there is a presence of inappropriate mark-ups, charge duplications, overcharging of labor and materials, etc.
They present their findings in a concise and comprehensible manner for all parties involved in the claims process. Businesses can also comprehensively look at inventory losses and
evaluate out-of-sight stock that can no longer be counted.
Seeking Professional Help
You need to hire a quality forensic accounting service for your business interruption claims and loss evaluation. However, finding one is easier said than done. Moreover, it is important to look for a company that offers a holistic suite of services such as public adjusting, building consulting, and damage evaluation.
In addition, hiring a public adjuster in Texas for your insurance claim can be quite beneficial because they will be familiar with applicable laws and proceedings and can guide you accordingly.
If you’re looking for professional and reliable forensic accounting services and public insurance adjusters in Texas, check out the services provided by Morgan Elite Specialist Services.
With over 75 years of combined experience, we can help you with all your commercial claim needs. Our experts will assist you every step of the way and prepare a strong claim that increases your chances of a fair and equitable settlement.