Those who want to have a rewarding career often look at several different things to determine whether that career will be a good option: they will want to know the salary, the type of work they will be doing, as well as whether it is going to be a viable career option with good opportunities. The forensic accounting job description shows potential candidates that it really does have plenty to offer in all of those areas.
A forensic accountant is a certified public accountant that is able to examine financial records and accounts that could then be used as evidence. Often, a forensic accountant will work in areas where they can help to prove or disprove insurance claims and personal injury claims. This type of accountant can also work to help resolve business disputes, divorces, and fraud cases. In some instances, the accountant may be able to help with criminal cases as well. Accountants who work within this specialty can also testify in court as experts.
The forensic accountant specialty can be an interesting one for those who have the desire to do meticulous work with numbers while also working to solve interesting problems and uncover hidden or missed details. Further, there are good growth opportunities in this field. Keep reading to learn more.
The Career Outlook for Forensic Accountants
Those who are on the path to become accountants will find that the outlook for growth according to the 2017 data from the U.S. Bureau of Labor Statistics, growth in the accountant career is expected to be 10 percent from 2016 to 2026. Currently, there are nearly 1.4 million accountant jobs, and the projected growth could add an additional 139,900 to the field.
Forensic accounting is a sub-specialty of accounting that is not specifically tracked by the BLS and will have fewer job openings. However, because accounting is such a solid field, those who want to pursue this specialty may be able to obtain a job as a CPA and eventually specialize after gaining some experience and professional contacts.
Specific to forensic accountants, the increased instances of fraud and computer crimes are helping to drive the demand for these financial specialists.
NAFA, the National Association of Forensic Accountants, offers training and certification for those who are entering the field. The Association of Certified Fraud Examiners, ACFE, offers help for those who are looking at the various career paths they can take. Both organizations understand that with better training comes better job opportunities, especially in a field that is highly competitive.
Forensic Accountant Salary
The median wage for those who are accountants is $69,350, according to BLS data from 2017. It is important to remember that this is merely the median wage and that other factors play significant roles in the salary that an accountant will be able to earn such the amount of experience the accountant has in forensic accounting, the geographic location, and where the individual works. Those who are in the lowest 10 percent of accountants may make around $43,020 annually, while the top 10 percent of earners are making more than $122,220 a year.
How to Become a Forensic Accountant
Because of the intricacies of the law and accounting standards that are necessary to be an effective forensic accountant, there is significant training involved. While the steps an individual takes may not necessarily mirror the following exactly, due to government regulations, this is the most common path:
Step 1: Earn a high school diploma or GED (4 years) – A successful career as a forensic accountant may well start in high school. It is important to earn a degree (or get a GED) and to focus particularly on any available advanced math or business courses.
Step 2: Earn an undergraduate degree (4 years) – Accountants of any specialty must earn an undergraduate degree. It may be most helpful to study accounting, but it is possible to major in something like economics or business as well. Prospective CPAs should be sure to consider the CPA requirements for their state before deciding upon a major.
Step 3: Become licensed as a CPA (timeline varies) – In order to work in any specialty, an accountant must earn the Certified Professional Accountant credential. Every state has its own requirements (consisting of different levels of experience and training) in order to sit for the CPA exam, so prospective CPAs should familiarize themselves with the requirements in the state where they want to work.
Step 4: Gain experience in accounting (timeline varies) While accounting graduates can often find internships or entry-level work while the study for the CPA exam, once they have completed it, they will begin to be able to pursue the forensic accounting specialization.
Step 5: Consider advanced education (2 to 4 years) An advanced degree is not a requirement for working as a forensic accountant, but it can help individuals to further specialize and advance their career. Master’s in forensic account degrees are available for those who are dedicated to learning more about this particular specialty.
Step 6: Pursue professional certification In addition to advanced education, forensic accountants may choose to pursue professional certification from one of the available organizations such as the American Board of Forensic Accounting or Association of Certified Fraud Examiners.
Depending on how in depth one wants to go with their training, a high school graduate will have at least four years of college followed by the time it takes to earn a CPA before they can truly start work as a forensic accountant. Indeed, many successful forensic accountants go even further to pursue a master’s degree and certification, which can take an additional two years, at least.
Forensic Accountant Tasks and Responsibilities
Forensic accountants need to have certain skills that they bring to the job. This includes the ability to think analytically and to pay great attention to all of the details. Math skills, and an actual enjoyment of math, are important as well. The accountant should be highly organized as well.
The skills that a forensic accountant brings to the table will be put to use in accomplishing her or her regular tasks, such as:
Uncovering and investigating financial evidence
Building applications to streamline financial analysis
Determining the value of assets
Writing reports about the evidence they find and analyze
Communicating to business owners, law enforcement, or other employers about the evidence they have found
Testifying in court as to their findings
Licensure and Certification for Forensic Accountants
While it might not be a requirement, most people that choose to follow a path to accounting and eventually forensic accounting are going to want to become CPAs, or certified public accountants. Those who have to file reports with the Securities and Exchange Commission will need to have certification. Often, one will need to have a certain amount of time in the field in order to apply for certification. Those who have more certifications are going to look like better candidates to employers.
In terms of certification specific to forensic accountants, there are options available, including:
Certified Forensic Accountant (CRFAC): This credential is available from the American Board of Forensic Accountants and is available to CPAs with at least two years of experience in forensic accounting. Applicants must be approved to take the required course and exam to earn the credential.
Certified Fraud Examiner (CFE): The Association of Certified Fraud Examiners offers the CFE credential to professionals working in fraud detection, including forensic accountants. Applicants must be members of the ACFE and have at least two years of professional experience before taking the CFE exam.
NAFA Certification: Members of the National Association of Forensic Accountants (NAFA) are elgible for certification through that organization upon successful completion of that group’s specialized training course.
If two corporate executives know that their company is about to be acquired—but the public does not know yet—those executives would be guilty of insider trading if they made trades based on their private knowledge.
Overall, finding a bachelor’s, master’s degree or certificate in a forensics or criminal justice discipline may abet one’s professional goals, in addition to being an interesting path in a service-oriented career.
