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Home › Accounting Careers › Forensic Accountant

What do forensic accountants do?

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.

Should I become a forensic accountant?

Many accountants report contentment and fulfillment in their positions, with a recent study ranking the accounting profession second among job happiness, with a score of 72.2 out of 100 points. Not only do accountants have high sentiments toward their careers, but they also have job security. The U.S. Bureau of Labor Statistics projects the accounting industry to grow 5% through 2035.

Similarly, the forensic accounting sector of accounting is expected to grow more than the standard rate, with Market Research Future reporting a 7.24% growth rate by 2032. As the business world continues to move to digital and outsource, businesses need accounting experts to uncover inaccuracies and fraud.

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:

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 Association of Certified Fraud Examiners estimates that the average CFE-certified accountant can make 32% more per year than a regular 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. The BLS reports median annual accountant and auditor salaries below:

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. Here’s how the career compares to other related career fields:

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. The industries with the top median CFE-certified forensic accountant salaries are technology, manufacturing and professional services.

Experience also dictates your salary. The Association of Certified Fraud Examiners found that professionals with five to nine years of experience get paid 20% more. As you build up your experience and job history, expect your salary to also increase.

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.

Each forensic accountant will have a different schedule, especially depending on the industry they work in. Here’s what a typical day might look like:

• Respond to emails
• Evaluate a sub-account for suspicious activity
• Review internal controls
• Create projections that identify accounts with a high risk of fraud
• Sit in on a management meeting

Like most other accountants, forensic accountants work a traditional 9 to 5 workday. These hours can either be completed in an office setting or remotely.

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

Professional organizations to join

Surrounding yourself with like-minded individuals and professionals is one of the best ways to grow your network and open the door to new career opportunities. Here are some top professional organizations to join:

• American Institute of Certified Public Accountants
• Association of Certified Fraud Examiners
• Institute of Certified Forensic Accountants

Your local area might also have organizations and professional groups for you to join.

Frequently asked questions

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