Mar 08 Financial Services Businesses Need
In addition to wealth management strategies to safeguard their long-term success and sustainability, there are many individual circumstances in which businesses may seek help from an outside financial services firm. Unlike longer-term financial planning, which many independent-minded business owners are reluctant to seek help for, businesses are often more inclined to seek help for more acute, specialized financial needs. Because acute financial needs that arise during the course of a business’s lifespan are often serious and occur without warning, it is important to consult with a Clifton NJ business advisory services firm that brings a wealth of experience and knowledge to the table. Business owners and non-profit organization leaders seeking the help of a financial professional are further encouraged to partner with an individual or firm with financial experience specific to their industry. Here are a few services that may require the help of an accountant or other financial services professional.
Business Valuation
Businesses require valuations for many different reasons. While the most obvious reason a business appraisal would be necessary is during the process of business’s sale or purchase (the valuation may be sought by either the buyer, seller or both parties) there are many other reasons as well. Some businesses have valuations conducted on a routine basis at regular intervals. Often, the business valuation is necessary to more clearly assess the financial situation of the business owner; this is true when valuation reports are presented to courts in matrimonial cases as marital states list their assets. A business owner may also utilize a valuation report as they undergo estate planning, tax planning and estate/gift tax return processes. Beyond the business owner, a valuation may be necessary for other employees in the event of shareholder disputes or stock option valuations.
Forensic Accounting
Companies require services related to forensic accounting and fraud for obvious reasons. Criminal financial actions like bribery, corruption and embezzlement may appear simple on the surface but require expert professionals to prove and help resolve. Many businesses seek forensic accounting services to conduct consistent, thorough audits and reviews that can uncover any unknown improper financial activity within the business. These routine fraud deterrence services include fraud risk assessments and internal staff trainings. Businesses undergoing a situation involving financial crime may also require accountants to provide expert testimony during legal proceedings. These services may be particularly relevant to businesses as they review tax returns and policies.
Economic Damage Analysis
Unfortunately, businesses often require economic damage analyses in circumstances that are less than ideal. Recovering financial losses from physical damage, work stoppages, contract disputes and fraud may involve a professional analysis on the part of a financial specialist. These analyses are often also used in court. Employees may also seek an economic damage analysis to assess how much money they have lost due to possible employment discrimination or personal injury, among other circumstances. Lawyers often rely on the economic analysis of accounting professionals and consultants for the financial aspects of their cases; all lawyers and their clients should make sure they are working with experienced professionals.
