Written by James Shupe

When considering who to employ for accounting services, you need to decide what level of accountant you need. Do you just need entry level bookkeeping? If so, then you can find an accounting student. Or do you need someone to prepare or review company financials? Then you’ll need to find someone with a more advanced knowledge of accounting like someone with an accounting degree and possibly someone who has earned the Certified Public Accountant (“CPA”) designation.

Accountants have been trained to understand the essentials of bookkeeping and accounting. A CPA has taken extra steps to learn more about the accounting profession. To some, CPA stands for Couldn’t Pass Again. While that is not actually true, the point is the CPA exam contains a lot of information and is difficult to pass. You can trust that anyone who passes this exam didn’t do so purely by luck. CPAs also must continue to learn about their profession through Continuing Professional Education (“CPE”). While this is less strenuous than the CPA exam itself, it ensures that CPAs stay current with evolving industry knowledge, regulations, and best practices.

What is a forensic accountant? Forensics is often associated with the law and crime. If someone is trained in forensics, they have an investigative goal to prove facts with evidence. Forensic accountants don’t just follow the rules of accounting, they look at accounting from multiple angles. Forensic accountants understand the interplay of a company’s financials and where somebody might try to hide something.

What then is the Forensic Certified Public Accounting (“FCPA”) designation? It is one of many additional designations that an accountant can earn by learning specified knowledge and passing another test. The FCPA designation applies to investigative accounting.

Why should you hire a FCPA? If you just need someone to record your company’s transactions, then any trained accountant will likely serve your needs. If you want an accountant that looks outside the box, then a FCPA is for you. When you hire a forensic accountant with an investigative mindset to review your finances, even though you don’t need them to find anything to prove a legal claim, they will be able to review your finances on a deeper level. You will end up getting more bang for your buck.

The skills that FCPAs have to review company financials are transferable to personal finances. If you need someone to review your personal finances, consider a FCPA for that too.