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Tag: forensic accounting

Accounting Mistakes That Could Harm Your Small Business

May 1, 2023 / / 0 Comments

While large businesses may have the resources to bounce back from financial blunders, small businesses, on the other hand, may not have that cushion. For entrepreneurs and small businesses looking to keep their cash flow steady, there are some steps they can’t just skip trying to make the leap. In this blog post, we will discuss some of the most common mistakes that can sink and destroy small businesses.

No Rainy-Day Fund

Failing to save for emergencies is one of the biggest financial mistakes that even the savviest business owners go wrong with their small business financial management. A rule of thumb is to have at least six months of running business expense as your rainy-day fund to avoid any financial shortcomings. The last COVID-19 pandemic did a number on many high-profile companies in the US, and this is a case in point on the importance of saving for emergencies and planning for the unexpected.

Mismanaged Taxes

Going for DIY taxes software to quickly cross off your to-do list can simply lead to costly tax issues. Managing your business taxes is an entirely different ball game than managing your personal ones. You need an expert well-versed in local and business laws to help you with your taxes. As a small business owner, you already have a lot on your plate, which is why hiring a tax expert can be a smart investment for your small business.

Being Oblivious to Fraud

Small business owners often wear many different hats and accounting might be one of their skills. While it’s a good thing that you’re able to handle your small business finances on your own, there is a risk of failing to catch the signs of fraud. Specialized accountants like forensic accountants have keen minds and it’s their job to ensure your business activities are legitimate and everything is in order. In cases of fraud detection, we believe that one can never be too careful. Hiring an accountant will minimize the risk for you.

Related: Learn more about how forensic accounting can save your business from fraud here.

Starting a Business without the Backup of an Accountant

Having your business see the light of the day is a big step. However, 20% of small businesses fail in their first year and being one of them is the last thing you want. That shows the importance of having a good business plan and the backup of an experienced accountant. No business can survive without a solid long-term plan and a vision to execute it.

An accountant can assist you with market forecasting and analyze the current situation to devise a plan for your business’s future. A seasoned accountant can help you put your business plan together and be your key success as you move forward.

Related: Learn more about why it’s essential to hire an accountant when starting a business here.

Let MARIELA RUIZ, CPA, PLLC Help You Reach Business Milestones

Small businesses face unique financial challenges that require careful attention and planning. MARIELA RUIZ, CPA, PLLC is here to ensure that you are well-supported and guided at each stage of the creation and development of your small business. Check our website to learn more about our services or simply give us a call at (956) 997-0067 for further assistance.

How Forensic Accounting Saves Your Business from Fraud

August 26, 2022 / / 0 Comments

No company in the world is completely safe from a variety of internal and external threats such as fraud and misinformation. As such, it is critical for a business to work with forensic accountants to make sure everything is in order regarding accounting and bookkeeping operations. Forensic accountants have keen minds and they like figuring out what really happened! In this month’s blog, we will discuss how forensic accounting keeps your business away from fraud and how to choose the right accountant for this task.

You May Benefit From A Forensic Accountant If…

First of all, before hiring a forensic accountant, you have to determine when and why you need their services and help. Well, if you have been robbed, are suffering from commercial damages, or even if you catch one of your employees stealing from your business, then it’s time to seek their assistance. A forensic accountant is a trained professional that combines a set of skills to investigate financial cases from the inside out.

Related: Learn more about the main role of a forensic accountant here.

How to Hire the Right Forensic Accountant

A forensic accountant must have many skills to be able to do their job to the fullest and provide the desired results. Nevertheless, forensic accountants can specialize in a variety of industries. Therefore, hire someone who has undertaken similar cases before. Not to mention that you have to research their portfolio, experience, and credibility.

The Objectives of Forensic Accounting

While forensic accounting primarily aims to detect fraud in financial activities, it has much more far-reaching implications than simply identifying fraud.

Below are four forensic accounting objectives:

  • It can help the company reduce losses significantly.
  • Forensic accounting ensures that business activities are legitimate.
  • It can help businesses avoid a range of legal threats.
  • Forensic accounting can help a company develop value-added economic policies.

Related: Learn more about forensic accounting and how it works here.

Conclusion

Nowadays, our news feeds are constantly flooded with stories regarding fraudulent acts. The age of the internet has given scammers and cybercriminals an opportunity and a channel to fraud businesses. This is where a forensic accountant comes in handy. If you need seasoned a forensic accountant in Mission, TX, choose MARIELA RUIZ, CPA, PLLC. We have many years of experience in the industry and specialize in all accounting areas. To learn more about our accounting firm and services, visit our website.

What Can a Forensic Accountant Help You With?

April 22, 2022 / / 0 Comments

A forensic accountant is a person who has all the expertise and skills needed to thoroughly investigate financial cases. He or she can also provide you with professional advice and solutions to overcome issues. So, if you’re thinking about which matters a forensic accountant can help you with, stress less. To clear your doubts, we’ve discussed all the possibilities that you can consider.

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1. A Shareholder or Partner Dispute

If you’re a person who is involved in a shareholder or partner dispute, fret not. A forensic accountant can help you with all sorts of disputes. The accountant will carefully study, analyze, and take the whole situation into consideration. Without being biased, the accountant will help determine the benefits and compensation that are owed to each shareholder and partner. The accountant will also ensure that the shareholder and partner agree to continue a diplomatic partnership. Not only this, but also accepting the outcome.

2. Selling your business

A forensic accountant can also assist you in figuring out a precise valuation of your company, so that you are well aware of how much it’s worth when the time comes to sell it. Even if you don’t plan to sell your company, at least you will know the value of your business and stay in the loop.

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3. Account Record

It becomes quite crucial to keep an eye on your business and also ensure that it is in good trustworthy hands when there are many people handling your records, because accounting malpractice can happen at any time. But if you lack expertise and you are suspicious about your bookkeeper, a forensic accountant can help you maintain accounting records. The accountant will walk you through the whole record your bookkeeper is maintaining and review how exactly they were handling.

4. Commercial Damage

You can also refer to a forensic accountant if you are suffering from commercial damage. The accountant will accurately study all the breaches of the contract, fraud, and construction claims and will provide you with expert testimony. Once the review of all the complexities of a commercial damage case is completed, your accountant can also help you present the facts to the jury.

5. The Fraud Risk Assessment

Not every person working and holding a position of power can be trustworthy. If you believe that your manager is involved in fraudulent activities, you can hire a forensic accountant. The accountant with all this expertise and experience will perform a fraud risk assessment. This process will help you prevent further financial theft at your workspace.

Conclusion

If you come across any of these situations, you should consult the professional services of a forensic accountant immediately. They will undoubtedly protect you and provide you with the best solutions. For instance, if you’re looking for a forensic accountant, you can rely on MARIELA RUIZ, CPA, PLLC. We offer professional forensic services in Mission, TX. Check our website to learn more about our services, or simply give us a call at (956) 997-0067 for further assistance.

The CPA: Your Litigation Support Professional

June 29, 2020 / / 0 Comments

There are a wide variety of types of court cases that can require the additional support of a CPA. Oftentimes in civil and business litigation, courts and powerful legal teams will require a CPA to weigh in based on their expertise in finances and accounting. Follow along with this blog to learn about the types of cases they typically work on and how having a CPA on your legal team can help you get the case results you seek.

Forensic Accounting

While forensic accounting may sound like a job reserved for detectives or the secret service, it is broad term used when a certified accountant applies the theories and principles of accounting in a legal setting. A CPA hired for litigation support purposes will review bank statements, receipts, time sheets, and any other necessary financial documents involving the case.

Business and Civil Litigation

Too often complex accounting, appraising, and tax issues find their way into business litigation. A certified public accountant with litigation support experience most often work either for or against a business to prove or disprove alleged disputes. For example, forensic accounting can either make or break cases involving bankruptcy, fraud, data analysis, damage evaluations and more.

In addition to business litigation, civil litigation cases will often require the additional support and expertise of a CPA as well. Most often their role in court will be as a consultant, but there are times when they are asked to stand as an expert witness too. Civil cases that could benefit from a CPA’s support can include those involving marital settlements, taxes, valuations and more.

Conclusion

When litigation is simply unavoidable, ensure that you have a solid legal team working in your favor. A CPA working to support your case will able to provide a judge and jury with indisputable evidence and facts that less qualified individuals wouldn’t have been able to uncover. For a CPA who’s highly experienced in providing top notch litigation support and forensic accounting services, contact us today!

What is Forensic Accounting?

May 28, 2020 / / 0 Comments

Forensic accounting is a combination of accounting, auditing and investigative skills used to examine financial settings of an individual or business. These accounting experts are enlisted during a fraud or embezzlement among other legal proceedings, where they provide accounting analyses to help the court better understand the financial crimes that took place. Insurance companies, police forces, banks, and government agencies typically employ them. The financial information that they compile can be used in court, and may be asked to testify in court as well as provide visual aids to support the trial evidence that they discovered.

There’s a variety of forms in which an accountant provides these services. Read along as we discuss a few of them.

Litigation Support

Running a business or company is not an easy task, and when dealing with financial crimes or legal disputes, simply relying on your in-house staff to resolve an issue is not enough. This is where litigation support comes to play. Litigation support is used in litigation cases where the quantification of damages needs to be determined, through legal research and valuation of property. These services are provided to help both parties involved come to a resolution before they reach the courtroom. If a dispute reaches the courtroom, the forensic accountant may then be asked to testify as an expert witness.

Civil and Criminal Investigation

Forensic accounting in criminal investigations is used to determine if financial criminal matters such as employee theft, fraud, and insurance fraud have been committed. A forensic accountant can be used during a civil matters as well. A civil investigation will help identify: hidden assets in a divorce case, breach of contracts, or business valuation disputes. 

Finding the Right Forensic Accountant

The right forensic accountant delivers a vast array of accounting services during legal matters. Their evidence can be used during court, and will often be asked to testify as an expert witness. They are reliable, thorough, and highly experienced in accounting, and have a good understanding of the courtroom.

Mariela Ruiz, CPA, PLLC is here to provide efficient and trustworthy forensic accounting services to the community of Mission, TX. From litigation support to criminal and civil investigation, you can depend on our team to help your company determine the facts in your current financial situation. To learn more about our accounting firm and services, visit our website.

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