I was speaking with my father this morning and he told me that the Texas Governor is saying that the floods and damage from Hurricane Harvey will be the most damaging event to hit the United States. I asked, “More than Katrina?” for which he replied emphatically “YES”. My heart goes out to the families and people of Texas who are enduring this tragedy. Having grown up in South Florida I have experienced my fair share of hurricanes and understand the devastation they can cause families and individuals. It wasn’t until Katrina that I fully understood the devastating effects these storms have on our economy and local businesses.
In addition to caring for themselves, their family, friends and their community, many business owners will be faced with the reality of submitting a claim to recover lost profits sustained by the effects of the storm. Employing a forensic accountant early in the process can be helpful in many ways. Forensic accountants are familiar with calculating lost profits, based on pre- and post-loss revenue and expenses. A forensic accountant can assist an attorney or adjuster with providing clarity into accounting rules and losses sustained by the business. They can help the insured and the insurer in the collection of complete and accurate books and records and can assist both parties in a resolution.
The issue at hand is determining how operations and the corresponding revenues and expenses were affected by the disaster. This involves projecting future losses and expenditures associated with making the business complete again. Forensic accountants are aware of the issues and steps needed to be taken by business owners in mitigating losses while restoring their operations.
On the other side, forensic accountants can assist attorneys and carriers with dispelling fraudulent or exorbitant claims. Forensic accountants are trained to identify fraud, waste or abuse. Unfortunately, in times of a disaster people will look for opportunities to take advantage of processes to benefit themselves.
In these times please be mindful of the various aspects affecting you and your family as well as your livelihood. Consider hiring a forensic accountant or skilled attorney to assist you with obtaining insurance funds.