When to Hire a Forensic Accountant: Key Signs and Solutions | Presti & Naegele
Forensic accounting is a specialized service that most individuals and businesses don’t think about—until they need it. It’s not something that shows up in routine financial planning or tax prep conversations. But when there’s suspicion of fraud, a legal dispute involving financial matters, or irregularities that can’t be explained, a forensic accountant becomes essential.
At Presti & Naegele, we help our clients decode complex financial situations through targeted forensic accounting services. Whether you’re dealing with internal discrepancies, external audits, or litigation, knowing when to bring in a forensic accountant can make the difference between clarity and chaos.
What Exactly Is Forensic Accounting?
Forensic accounting is the practice of using accounting, and investigative skills to examine the finances of individuals or businesses. But unlike traditional accounting, it’s not focused on preparing financial statements or filing taxes. Instead, forensic accountants are brought in when there’s a problem—often one involving fraud, litigation, or unexplained financial changes.
The role of a forensic accountant is to identify, investigate, and clarify complex financial issues. This can include:
- Tracing hidden assets
- Uncovering embezzlement
- Analyzing financial data for use in court
- Preparing expert testimony
At Presti & Naegele, our forensic accounting team acts as financial detectives. We examine financial records through a legal and investigative lens, ensuring that facts come to light in even the most opaque financial situations. Our work is often used in court cases or formal legal proceedings, which is why precision and clarity are critical.
6 Clear Signs You Might Need a Forensic Accountant
It’s not always obvious when a forensic accountant is needed. But if you’re facing any of the following situations, it’s worth scheduling a consultation.
1. Unexplained Discrepancies in Financial Records
When your business records don’t match your bank statements, or when cash flow issues arise without any clear cause, that’s a red flag. A forensic accountant can investigate and identify where the inconsistencies are coming from.
2. Suspicions of Fraud or Theft
Even if you don’t have proof, consistent anomalies—like duplicate invoices, altered records, or sudden financial losses—should be investigated. Forensic accountants have tools and experience to detect fraudulent patterns.
3. Disputes Between Business Partners
When ownership or profit distribution comes into question, a forensic accountant can provide neutral, fact-based analysis to help resolve the dispute fairly.
4. Divorce or Estate Litigation
High-net-worth divorces or estate conflicts often involve accusations of hidden assets or misreported finances. Forensic accountants trace assets and provide accurate valuations.
5. Regulatory or Legal Scrutiny
If your business is under investigation or facing legal action over financial practices, forensic accounting can help you respond with evidence-based findings.
6. Rapid Financial Changes Without Explanation
If your business experiences sudden financial shifts—positive or negative—that don’t align with operations, it's time to investigate. Mismanagement, theft, or accounting errors could be the cause.
Each of these situations warrants professional investigation. The forensic team at Presti & Naegele works closely with clients to determine the scope and depth of financial irregularities—and deliver answers backed by data.
Common Situations Where Forensic Accountants Add Value
The need for forensic accounting spans industries and scenarios. Here are some of the most common use cases we address:
Corporate Fraud Investigations
Embezzlement, expense reimbursement fraud, payroll manipulation, and procurement schemes are all examples of internal fraud. A forensic accountant can detect these tactics and help businesses implement tighter controls moving forward.
Bankruptcy & Insolvency
When a company goes under, forensic accountants help determine whether fraud contributed to the insolvency. They can also assist in identifying assets that may be available for creditors.
Shareholder or Partnership Disputes
Ownership disagreements often hinge on financial performance and equity valuations. Forensic accountants offer objective insights into company value and the accuracy of financial reporting.
Insurance Claims & Loss Analysis
When a company experiences a loss—such as from a fire or theft—an accurate financial picture is necessary to file or defend a claim. Forensic accountants verify the scope of the loss and help justify the numbers.
Criminal Investigations Involving Financial Misconduct
If financial crime is suspected, whether at an organizational or individual level, forensic accountants support legal teams by tracing transactions, identifying beneficiaries, and simplifying the facts for a judge or jury.
Expert Witness Support
At Presti & Naegele, we don’t just deliver reports—we’re trained to present findings in legal settings. Our forensic accountants are experienced communicators who can translate complex data into testimony that holds up in court.
The Real Cost of Ignoring Financial Irregularities
Failing to investigate questionable financial activity doesn’t just risk financial loss—it can escalate to legal liability, reputational damage, and regulatory fines.
Consider these risks:
- Unaddressed fraud may continue for years, increasing the cost of recovery.
- Legal disputes may become harder to win without early documentation or expert insight.
- Regulatory investigations could lead to penalties, audits, or even criminal charges.
- Investor and stakeholder trust can erode quickly if transparency isn’t prioritized.
Delaying an investigation often increases the time and cost required to resolve the issue. If something doesn’t look or feel right, it’s best to bring in professionals early. Presti & Naegele offers early-stage assessments that can help you determine whether a deeper dive is needed.
What to Expect When You Hire Presti & Naegele
Choosing a forensic accounting partner shouldn’t add stress to an already challenging situation. At Presti & Naegele, we prioritize clarity, responsiveness, and a process that adapts to your needs.
Here’s how we typically approach a case:
1. Initial Consultation
We start with a conversation to understand the background, identify the main concerns, and establish a scope for our investigation.
2. Document Review & Financial Analysis
We request and review financial records—bank statements, transaction logs, tax documents, and more—to start building a factual narrative.
3. Investigation & Interviews
If needed, we conduct interviews or internal reviews to gather more context. Our team is discreet and professional at every step.
4. Reporting & Communication
Findings are shared clearly and concisely, whether it’s a written report or visual presentation. If litigation support is required, our team prepares expert testimony.
5. Ongoing Support
Even after the case is resolved, we help clients implement improved internal controls and prepare for possible future audits.
Our tailored approach means that every case—whether fraud, litigation, or compliance-related—is handled with precision. Explore our forensic accounting services to learn more.
Prevention Matters: Building Financial Resilience
While forensic accounting often comes into play after an issue has been detected, it’s also a powerful preventative tool. By identifying weaknesses in your internal processes, forensic accountants can help you fortify your financial systems.
How We Help Clients Strengthen Controls:
- Conducting internal reviews to identify vulnerabilities
- Recommending improvements to approval workflows
- Analyzing transaction trends for unusual activity
- Training staff on recognizing fraud risk indicators
The goal is simple: reduce risk and increase transparency.
At Presti & Naegele, we support clients not just in reacting to problems but in proactively preparing to prevent them. This approach saves time, money, and reputational damage in the long run.
Choosing the Right Forensic Accounting Partner
Not all forensic accountants offer the same level of service or insight. It’s essential to work with a team that understands both the technical and legal nuances of your situation.
What to Look For:
- Experience: Look for a firm with a strong track record in forensic cases.
- Communication skills: The ability to present complex information clearly is vital—especially in legal settings.
- Customization: No two cases are alike; your accounting partner should adapt their approach accordingly.
- Responsiveness: Financial issues often develop quickly. You need a team that’s ready to act when needed.
Presti & Naegele combines investigative precision with professional discretion. Our forensic accountants have supported clients across a wide range of industries and scenarios—from local business disputes to federal investigations.
We proudly serve clients in NYC, New York, New Jersey, Connecticut, Washington D.C., and across the United States. If you’re facing a financial challenge or need clarity fast, we’re ready to help.
Is It Time to Bring in a Forensic Accountant?
Financial red flags don’t go away on their own. Whether you’re seeing unexplained discrepancies or navigating a legal dispute, waiting too long to investigate can compound the problem.
A forensic accountant can bring clarity, confidence, and resolution to even the most complex financial issues. At Presti & Naegele, we specialize in forensic accounting that uncovers the facts, supports your legal position, and helps you move forward with certainty.
Ready to take the first step? Schedule a consultation with our team today.
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