Accounting Education is hiring: Forensic Accountant in Village of Newark

Forensic accountants are unique investigators in the accounting landscape. They use their accounting background to investigate fraud, provide litigation support, analyze financial statements and identify prevalent risks. Once these factors are identified, forensic accountants calculate damages and losses, helping organizations take action, whether that be legal action or preventive measures.

A career in forensic accounting might be the right fit if you enjoy solving problems, have critical thinking skills, and like working with numbers. In this article, we’ll explore what a career in forensic accounting entails, including the necessary skills, average pay ranges and how to get started.

How can I become a forensic accountant?

Forensic accountants need a mix of education, experience, and credentials. Here are four steps to becoming a forensic accountant:

Step 1: Earn a bachelor’s degree in accounting
Forensic accountants are experts in investigative accounting, meaning some formal educational background is required. Most forensic accountants pursue a bachelor’s degree in accounting or a bachelor’s in forensic accounting. However, some forensic accountants hold a finance degree. An associate degree can get your foot in the door, but it will be difficult to scale your career without a bachelor’s degree.

Step 2: Satisfy CPA or CFE requirements
Pursuing a Certified Public Accountant (CPA) license is common for forensic accountants. For one, some forensic accountants testify in court, meaning they need credentials to back their claims. Additionally, a CPA license expands your working knowledge about general accounting principles and requires continuing education, helping you stay informed on industry changes.

Step 3: Obtain relevant work experience
Forensic accounting is a niche sector of accounting. This makes it important to build your work experience and network. While you’re in school, look for internship programs and attend networking events. Many established forensic accountants are more than happy to take on a mentorship role and help you get your career started.

Step 4: Complete continuing education requirements
CPAs are required to complete 80 credit hours of continuing education every two years. CFEs are required to take at least 20 hours of continuing education each year. Even if you don’t pursue a CPA or CFE license, taking regular continuing education can be beneficial to stay informed about industry changes and best practices.

What salary does a forensic accountant earn?

Since forensic accountants are a niche field in the accounting industry, the salary expectations are much higher than those of the average accountant. The average salary for an analyst is $79,000 per year with a CFE license and $62,000 per year without. The manager-level median pay is $98,700 per year with a CFE license and $76,985 without this credential.

How do forensic accountants compare to other finance careers?

Forensic accountants have a specialized skill set, which is why they generally earn more than a staff accountant or other general accounting roles.

Factors that impact salary

A forensic accountant’s salary is dependent on a few different factors. For one, each state will have different median pay rates. In addition, the sector you work in will have a large impact on your expected salary.

What being a forensic accountant is all about

Forensic accountants can take on a broad role in an organization, from helping generate internal reports to uncovering potential fraud schemes. Here are a few of the other main tasks of a forensic accountant:

• Analyzing financial data for fraud, asset misappropriation and material misstatements.
• Conducting interviews of company personnel to identify control weaknesses.
• Creating compliant internal financial reports and statements.
• Assisting upper management with decision-making surrounding risks and compliance.
• Testifying in court proceedings on findings.

Necessary skills and competencies

Forensic accounting is a technical career, requiring you to understand guiding laws and regulations that impact your organization. For example, you might evaluate a company’s balance sheet to ensure that all accounts are accurately presented according to Generally Accepted Accounting Principles (GAAP).

Other technical skills might include software use. Forensic accountants rely on technology to flag accounts and track data, making it important to be able to easily navigate different programs. Alongside technical skills, forensic accountants also need soft skills, like critical thinking, communication and time management.

Where forensic accountants work

Forensic accountants have flexibility in where they work. Let’s explore a few of the job titles and environments your career can take you.

Job titles

• Staff forensic accountant: This is an intro-level position.
• Senior forensic accountant: After a few years of experience, you will move into a senior position.
• Manager: Once you have another few years of experience, you will transition to a management position.
• Senior manager: The next stop after manager is a senior manager.
• Partner: Partner is the highest level for a forensic accountant in a company.

Possible work environments

Forensic accountants have options when it comes to their work environment. For one, a forensic accountant can work as a part of an accounting firm. Another option is to work in a private company. Finally, forensic accountants can freelance or start their own business.

Tips to help you stand out as a candidate for forensic accountant positions

Securing your dream job as a forensic accountant can be done by standing out amongst other candidates. Here are some top strategies to differentiate yourself from other candidates:

• Pursue a CFE or CPA license
• Grow your professional network
• Set clear career goals and expectations
• Build up your work experience
• Focus on your soft skills
• Demonstrate your commitment to lifelong learning
• Practice public speaking

Frequently asked questions

Do forensic accountants need a CFE or CPA license?
Although these credentials aren’t required, they can be helpful to expand your knowledge and generate more promotion abilities.

What is the difference between a CPA and a CFE license?
A CPA license focuses on general accounting principles, while a CFE license covers fraud examinations and investigations.

Do all forensic accountants need to testify in court?
No, forensic accountants can choose their projects. However, forensic accountants who offer independent investigations are more likely to testify when a company brings fraud charges forward.