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- Forensic Accountant Job Description
- Forensic Accountant – Salary
- National Average Salary: $90,780
- Salary Information by State
- How to Become a Forensic Accountant: Step-by-Step
- Step One – Meet Age and Foundational Education Requirements
- Step Two – Earn a Bachelor’s Degree in a Qualifying Field
- Step Three – Get Hands-On Accounting Experience
- Step Four – Apply for Your CPA License
- Step Five – Earn a Specialized Forensic Credential
- Step Six – Apply for Forensic Accounting Jobs
- Step Seven – Maintain Your Forensic Certification and CPA License
- Forensic Accounting – Education
- Forensic Accountant Licensing and Certification Requirements
- Job Outlook for Forensic Accountants
- Should You Become a Forensic Accountant?
- Sources
- Frequently Asked Questions
Forensic Accountants are financial detectives.
These financial crime fighters investigate crimes like theft, fraud, bribery, and embezzlement.
They delve into the financial records of individuals, corporations, and financial entities in civil cases to uncover supporting evidence in fraud investigations and legal cases.
Their unique skill set allows them to discover financial misconduct that would otherwise go unnoticed by the untrained eye.
If providing financial investigation and recovery support for some of America’s top law firms, accounting firms, and three-letter government agencies like the FBI or IRS sounds like an exciting career, becoming a Forensic Accountant could be the ideal career pathway for you!
Dive into the comprehensive career guide below to learn more about the job duties of today’s financial accountants, find out how much they earn, and get step-by-step guidance on how to become a Forensic Accountant.
Forensic Accountant Job Description
Forensic Accountants are highly trained financial professionals who use accounting, financial, investigation, and legal skills to analyze financial statements, tax returns, and accounting records.
Their ultimate goal is to discover financial mismanagement as they trace and recover hidden assets, misappropriated funds, and outright theft.
Forensic Accountants interact with Accountants, Legal Professionals, Lawyers, Law Enforcement Officers, and Internal Auditors as a regular part of their daily quests to stamp out financial fraud.
- Investigate Financial Crimes
- Analyze Business Documents and Personal Financial Records for Evidence of Fraud
- Testify in Dispositions or Court Cases as Expert Witnesses
- Uncover Hidden Assets in High-Stakes Legal Cases – Divorce, Bankruptcy, Criminal
- Assess Financial Damages in Legal Cases
Forensic Accountant – Salary
Forensic Accountants working in law firms, government offices, corporations, and private accounting firms make well-paying salaries, which can include a base salary, medical benefits, dental benefits, additional compensation packages, and matching credits for retirement contributions.
The Bureau of Labor Statistics reports the average salary for General Accountants and Auditors at $79,880.00 per year.
Financial Specialists like Forensic Accountants earn an average annual salary of just over $80,000.00 annually.
While this number represents the average, there are higher-paid and lower-paid Forensic accountants.
The lowest-earning Financial Specialists earned around $50,440.00 in 2023.
Higher-earning Forensic Accountants brought in over $137,000.00 in 2023.
Key factors that affect how much Forensic Accountants get paid include the number of years of experience on the job, CPA certification status, employer location, and employer type.
National Average Salary: $90,780
Salary Information by State
| State | Employed | Avg. Annual Salary | Avg. Hourly Pay | Top 10% Annual Salary | Bottom 10% Annual Salary |
|---|---|---|---|---|---|
| Alabama | 24,930 | $76,200 | $36.64 | $119,100 | $45,670 |
| Alaska | 2,430 | $82,480 | $39.65 | $112,360 | $52,620 |
| Arizona | 25,840 | $86,700 | $41.68 | $130,550 | $50,250 |
| Arkansas | 7,460 | $70,290 | $33.79 | $106,070 | $40,890 |
| California | 166,020 | $100,560 | $48.35 | $159,330 | $59,570 |
| Colorado | 34,310 | $94,170 | $45.28 | $139,980 | $55,960 |
| Connecticut | 16,320 | $90,570 | $43.54 | $131,480 | $58,080 |
| Delaware | 5,840 | $93,180 | $44.80 | $135,830 | $53,650 |
| D.C. | 11,310 | $113,190 | $54.42 | $171,720 | $65,500 |
| Florida | 89,350 | $83,430 | $40.11 | $130,460 | $46,380 |
| Georgia | 44,580 | $93,500 | $44.95 | $139,420 | $46,740 |
| Hawaii | 4,980 | $79,480 | $38.21 | $115,890 | $50,060 |
| Idaho | 6,380 | $69,300 | $33.32 | $104,360 | $43,200 |
| Illinois | 53,120 | $85,790 | $41.25 | $129,790 | $49,200 |
| Indiana | 24,490 | $79,070 | $38.02 | $120,030 | $46,930 |
| Iowa | 13,090 | $77,280 | $37.15 | $109,200 | $48,850 |
| Kansas | 13,990 | $79,840 | $38.38 | $118,620 | $48,600 |
| Kentucky | 11,890 | $74,730 | $35.93 | $109,670 | $45,200 |
| Louisiana | 13,350 | $74,640 | $35.88 | $105,760 | $45,840 |
| Maine | 4,890 | $82,940 | $39.87 | $126,850 | $52,840 |
| Maryland | 24,470 | $93,440 | $44.92 | $141,400 | $57,770 |
| Massachusetts | 42,420 | $99,360 | $47.77 | $143,440 | $62,480 |
| Michigan | 40,510 | $82,970 | $39.89 | $125,120 | $48,730 |
| Minnesota | 30,370 | $87,290 | $41.97 | $133,710 | $51,240 |
| Mississippi | 7,380 | $71,830 | $34.54 | $108,620 | $39,440 |
| Missouri | 27,380 | $84,540 | $40.64 | $130,640 | $43,480 |
| Montana | 4,390 | $75,430 | $36.27 | $110,830 | $45,080 |
| Nebraska | 9,830 | $75,380 | $36.24 | $107,270 | $46,890 |
| Nevada | 6,690 | $73,950 | $35.55 | $106,470 | $36,570 |
| New Hampshire | 7,310 | $85,090 | $40.91 | $123,770 | $54,290 |
| New Jersey | 46,860 | $110,700 | $53.22 | $169,740 | $64,940 |
| New Mexico | 6,810 | $77,060 | $37.05 | $115,880 | $48,330 |
| New York | 119,150 | $113,310 | $54.48 | $178,170 | $61,810 |
| North Carolina | 43,100 | $90,870 | $43.69 | $138,990 | $52,000 |
| North Dakota | 4,290 | $71,760 | $34.50 | $103,420 | $46,360 |
| Ohio | 50,670 | $81,640 | $39.25 | $125,250 | $48,180 |
| Oklahoma | 15,940 | $81,740 | $39.30 | $126,240 | $47,040 |
| Oregon | 14,130 | $85,000 | $40.86 | $121,710 | $55,640 |
| Pennsylvania | 54,540 | $83,760 | $40.27 | $124,870 | $47,180 |
| Rhode Island | 6,350 | $99,020 | $47.61 | $149,980 | $58,740 |
| South Carolina | 15,760 | $76,180 | $36.63 | $111,010 | $44,560 |
| South Dakota | 6,170 | $77,840 | $37.42 | $106,200 | $55,180 |
| Tennessee | 26,650 | $81,510 | $39.19 | $126,800 | $48,600 |
| Texas | 111,160 | $88,820 | $42.70 | $132,750 | $50,810 |
| Utah | 16,170 | $79,670 | $38.30 | $127,770 | $39,620 |
| Vermont | 2,690 | $83,960 | $40.37 | $116,570 | $55,270 |
| Virginia | 50,040 | $91,290 | $43.89 | $140,360 | $51,900 |
| Washington | 35,990 | $97,120 | $46.69 | $136,100 | $62,020 |
| West Virginia | 4,830 | $73,380 | $35.28 | $104,920 | $45,760 |
| Wisconsin | 26,530 | $82,630 | $39.73 | $121,240 | $52,140 |
| Wyoming | 2,630 | $78,990 | $37.98 | $117,730 | $48,770 |
| Guam | 480 | $48,960 | $23.54 | $70,030 | $32,720 |
| Puerto Rico | 11,860 | $42,010 | $20.20 | $63,310 | $23,720 |
| Virgin Islands | 360 | $63,170 | $30.37 | $94,840 | $37,860 |
Annual Average Salary: Top 10 States
The top earning state in the field is New York, where the average salary is $113,310.
These are the top 10 earning states in the field:
* Employment conditions in your area may vary.
How to Become a Forensic Accountant: Step-by-Step
Becoming a Forensic Accountant involves a multistep process where prospective accountants meet general and specific requirements.
While each prospective financial investigator will ultimately follow his or her pathway, the following are examples of the steps most forensic accountants will take on their journey to securing their dream jobs.
Step One – Meet Age and Foundational Education Requirements
Aspiring Forensic Accountants must have completed high school or its equivalent and be at least 18 years old.
Completing high school and coming of age are the first steps towards higher education, CPA certification, and starting a rewarding career as a Financial Auditing Specialist.
Step Two – Earn a Bachelor’s Degree in a Qualifying Field
Prospective Accountants who have completed foundational age and education requirements can move on to the next step of earning a Bachelor’s degree.
Most entry-level accounting positions will require candidates to have a Bachelor’s degree in one of the following fields or another related career field.
- Accounting
- Auditing
- Business Law
- Criminal Justice
- Finance
- Fraud Investigation
Forensic Accounting hopefuls can expect to spend between three to five years earning a financial accounting or related degree.
Factors such as full or part-time status and time spent completing course requirements can have a substantial impact on how long it takes to complete Bachelor’s-level financial accounting education.
Some online and self-paced options may offer an opportunity for accelerated learning as enrollees typically complete mandatory requirements at their own pace.
Step Three – Get Hands-On Accounting Experience
Serious career seekers take advantage of accounting internships at accounting firms, corporate finance departments, and government agencies to gain hands-on experience in the field.
Hands-on experience will expose potential new Forensic Accountants to the latest processes, procedures, and technology needed to work as an effective accountant.
Taking advantage of immersive learning opportunities offered by accounting programs, workforce development agencies, and accounting employers helps students hone their skills as they learn to navigate the financial field.
Step Four – Apply for Your CPA License
Stand out from the crowd by earning your CPA license.
The CPA is a well-respected and highly recognized national credential that is accepted and preferred by many financial and accounting employers.
Accountants with this credential immediately demonstrate competency and effectiveness in the field by earning this credential.
Each state has its standards and requirements for awarding the CPA.
Visit your state Board of Accountancy website to learn about specific rules in your area.
Step Five – Earn a Specialized Forensic Credential
Make your chances of standing out from the job-seeking crowd even greater by earning an official forensic certification from a top national agency.
Top certifications for active and potential Forensic Accountants include some of the following:
- Certified Fraud Examiner CFE – Administered by the Association of Certified Fraud Examiners
- Certified in Financial Forensics CFF – Administered by the AICPA
- Forensic CPA Credential – Administered by the Forensic CPA Society
Step Six – Apply for Forensic Accounting Jobs
Now that you’ve gained all the education, experience, and specialized credentials needed to excel in your field, Congratulations!
You’re ready to apply for jobs working in accounting firms, law enforcement agencies, government agencies, and law firms.
Get help finding your dream job by taking advantage of career services programs offered through accounting education channels and well-respected national accounting organizations.
Step Seven – Maintain Your Forensic Certification and CPA License
Licensed and Certified Accountants must renew their credentials according to the timelines and standards set forth by the credential-issuing agency to remain compliant.
Maintaining your Certified Professional Accountant status and specialized forensic certifications typically means enrolling in continuing education courses or participating in approved accounting activities for continuing certification and licensing credits.
Forensic Accounting – Education
A commitment to completing your accounting and financial education is key to success on your journey to becoming a Forensic Accountant.
While each accounting program offers its teaching formats, delivery methods, and reference materials, you can expect to learn about some or all of the following in a specialized accounting program.
Educational options for specialized accountants can include Associate, Bachelor’s, and Master’s level degree programs.
Forensic Accountants will likely need to complete the CPA educational requirements and requirements needed to maintain specialized certification credentials.
Bachelor’s Level Accounting Programs will typically include foundational accounting courses, general education courses, business-related courses, and electives.
Bachelor’s degree-seeking students can expect to spend between three and four years completing mandatory program requirements, internships, and gaining hands-on experience in the field.
- Auditing
- Business Ethics
- Ethics in Accounting
- Finance
- Financial Accounting
- General Studies
- Introduction to Business
- Managerial Accounting
- Organizational Behavior
- Tax Accounting
Master’s Level Accounting programs will capitalize on existing financial knowledge and introduce career-focused agents to new accounting methods, practices, techniques, and technology.
- Accounting Theory and Research
- Advanced Auditing
- Advanced Financial Accounting
- Advanced Managerial Accounting
- Advanced Taxation
- CPA Exam Preparation
- Ethics and Professional Responsibility in Accounting
Specialized Accounting Courses and Certification Programs require forensic hopefuls to complete and master a standardized curriculum that teaches accounting and investigation fundamentals for financial accounting specialists.
- Business Valuation
- Cybercrime and Digital Forensics
- Expert Testimony Training
- Forensic Accounting
- Fraud Examination and Detection
- Government and Non-Profit Accounting
- Litigation Support
- White Collar Crime
CPA Programs can run concurrently with Bachelor’s or Master’s level programs based on a national standard set forth by the National Association of State Boards of Accountancy, NASBA
- Advanced Accounting
- Auditing
- Cost Accounting
- Financial Accounting
- Intermediate Accounting
- Managerial Accounting
- Taxation – Individual and Corporate Entities
Forensic Accountant Licensing and Certification Requirements
Learning about licensing and certification requirements for Forensic Accountants is less complicated when you understand the basics.
The first thing new Accountants should note is that licensing and certification requirements for Forensic Accountants vary by state.
It is crucial to verify your state’s specific educational and occupational requirements for CPA licensing and Forensic Accounting certification before committing to a program or applying to take certification exams.
Generally, most prospective CPAs will need to complete at least 150 credit hours of approved college-level education to become eligible to take the CPA exam.
Acceptable credit hours must relate to the accounting and financial discipline and typically include coursework in accounting, finance, economics, marketing, and business.
CPA-bound accountants can take advantage of online resources offered by certification agencies and CPA-issuing authorities.
National agencies like AICPA offer online resources, access to real-life accounting scenario practice, scholarships, and grants.
Working accountants who have already earned their CPA credentials can specialize even further by earning the Forensic Certified Public Accounting credential offered by the FCPA Society.
This specialized credential takes a deep dive into the world of financial fraud investigations, regulatory knowledge, and legal knowledge, and it can be a game-changer for those who are serious about making a lifelong career out of fraud investigations and forensic accounting.
Professionals who hold the FCPA credential are seen as experts in their field and are often called on to consult or testify in fraud cases, embezzlement cases, and misappropriation of funds investigations.
It is important to note that each certification, license, and credential has its own application process, application acceptance date, participation fees, and renewal requirements, which can vary by state or region.
Learn more about specific licensing and credentialing requirements by visiting the official website of the issuing agency.
Job Outlook for Forensic Accountants
The job outlook for Forensic Accountants looks bright, with a steady demand for well-trained financial fraud investigators and legal liaisons predicted to remain steady by the Bureau of Labor Statistics.
As long as there is financial crime, including emerging cybercrimes, crypto crime, and technology crimes, there will be a need for ethical fraud and embezzlement investigators.
Should You Become a Forensic Accountant?
Deciding whether to become a fraud-investigating accountant is a very personal choice.
However, if tracking down nefarious criminals and helping legal officials and law enforcement agencies stamp out financial crime sounds like your dream job, becoming a Forensic Accountant could be the ideal career move for you!
Overall Satisfaction – High
Forensic Accountants who enjoy the investigative, legal, and crime-solving nature of their jobs will experience high levels of job satisfaction in this challenging financial investigation role.
Average Salary- High
Accountants with more years of on-the-job experience and advanced credentials typically find themselves on the higher end of the salary scale.
Geographical location and employer type are additional factors that can affect salary and pay options.
The average annual salary of Forensic Accountants falls between $50,000.00 to over $100,000.00 per year.
Job Growth Outlook – Medium
America’s BLS predicts the job market for Forensic Accountants and General Accountants to hover around 4%, which is about the same average for most US-based occupations.
If you’re considering becoming a Forensic Accountant as a long-term career, the career outlook is bright for incoming investigators!
The increasing need for technologically and financially savvy investigative accountants means that there is a steady demand for the unique skills of specialized financial accountants.
Education Duration
While each individual will progress towards achieving their goals at their own pace, forensic accounting students should expect to spend between four and six years completing their educational requirements.
Foundational education requirements include earning a four-year degree in Accounting, Economics, or Business from an accredited institution.
Accounting students will likely spend additional time completing CPA training requirements, which include a minimum of 150 hours of college-level instruction and earning specialized forensic accounting credentials.
Talk to your student advisor to learn about the best options for completing forensic accounting educational requirements.
Personal Skills Needed
- Above-Average Research and Investigation Skills
- Excellent Written and Verbal Communication Skills
- Advanced Financial Accounting Experience
- Forensic Accounting Experience
- Legal Knowledge of Rules and Processes
- Cyber Intelligence and Digital Tracking Skills
Sources
Accountants and Auditors – BLS
https://www.bls.gov/ooh/business-and-financial/accountants-and-auditors.htm
Association of International Certified Professionals and Accountants
https://www.thiswaytocpa.com/
Forensic CPA Society
https://www.fcpas.org/
National Association of State Boards of Accountancy
https://nasba.org/
Frequently Asked Questions
How long do you have to go to school to become a Forensic Accountant?
Incoming financial investigators who are serious about turning Forensic Accountancy into a long-term or lifelong career can expect to spend between four and six years completing their educational requirements.
This timeframe includes earning a Bachelor’s degree in a finance-related field, earning a CPA, and earning specialized forensic certifications.
How much money does a Forensic Accountant make a year?
US-based Forensic Accountants typically earn between $50,000 – $137,000 per year on average.
Accountants with more years of experience in the field and advanced certifications can typically command higher salaries than those with less experience and fewer credentials.
Geographical location can also be a major factor in local Forensic Accounting salaries.
What skills do you need to become a Forensic Accountant?
Critical thinking skills and above-average problem-solving skills are must-haves for forensic accounting experts.
These financial fraud busters must also have high levels of ethics, integrity, and top-notch organizational skills.
Additional Skills Required Can Include:
- Data Analysis and Financial Modeling Skills
- Prospective Forensic Accountants should have the following skills:
- Financial Accounting and Auditing Knowledge
- Fraud Detection and Investigation Skills
- Legal and Regulatory Skills
Are Forensic Accountants in high demand?
Yes!
The increasing rise in financial crimes, fraud, and corporate scandals, along with the introduction of cryptocurrency as a widely accepted form of global currency, is driving a demand for financial investigators who can spot financial irregularities, trace hidden assets, and serve as expert witnesses in legal cases.
What kind of education do you need to be a Forensic Accountant?
Highly skilled Forensic Accountants will typically need a Bachelor’s degree or higher in a finance-related field like economics, accounting, or business.
Accounting employers typically prefer to hire candidates with a CPA and specialized Forensic Certification administered by the FCRA.
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