Accounting for change - Portland Business Journal:

loxezop.wordpress.com
Demand from business clients is up for litigation andforensi accounting, accountants in the Portland area say. Valuationm work linked to mergers and acquisitionshas fallen. And tighterd credit has increased the need for even smalkl private businesses to compile financial statements that meet the stricyt standards of their larger has seen an increase in lawsuits by shareholders againstg individualsand corporations, which has heightened demand for forensic accounting and frau analysis, said William managing partner. The Portland firm consulted on behalf of investors in the case against Oregon ventured capitalistCraig Berkman.
Jurors penalized him $28 million last after concluding that Berkman had misused fundzs and lied about his Similar litigation continues to occupythe firm, Holmes though he declined to specify open cases. Geffenb Mesher & Co. has experienced an increas in demand forsome services, and decreasez elsewhere. The Portland firm has historicallgy offered valuation work centered around merger andacquisition activity, said Mike managing shareholder. But mergers and acquisitionxs havedried up, cutting into demand for those services. forensic accounting work is up. “Durinh tough economic times, fraudulent activity does increase,” Rompa said.
Businesss clients are increasingly calling on Geffeb Mesher to review their internal controle and identify possiblefraudulent activity. Geffen Mesherf is also preparing more complex financialp reports for small andprivatew businesses. Banks have growb more cautious aboutmaking loans, and increasinglyg require businesses to submit financial statements that adhere to the U.S. Generally Accepted Accounting Principles, Rompa This has created work for accountinhg firms that specialize in small andprivate businesses, which historically have not had to use accountinbg principles developed for larger, public companies.
“The more prolififc the accountingstandards are, the more difficultt the smaller business finds it to compl y with those standards,” Rompa said. “Thre cost of compliance has skyrocketed.” Those stricter standards are the resuly of increased scrutiny on which has created work for accountinyg firmof Portland. The firm counts a number of banks amongits clients, said partnet Mark Symonds. As bad loans take a toll on bankbalancd sheets, state and federal regulators have required many bankas to conduct thorough reviews of thei loans, generating work for the banks’ accountants.
Deman across business clients is up for strategicplannint help, Business clients face slim profit or even losses, and are calling on accountantse to identify strategic moves, Symonde said. “Nobody knows how long this recession is going to but we can help clients identify change they may need to make tobusiness practices.” Holmes and Co. has likewise seen an uptick in this kind ofconsulting work. The firm has adopted a policy of open investing in communications technology to make employees accessible arounddthe clock. “Clients have a lot of anxiety aboutthei future, their families, their banking Holmes said.
“We don’t want to create more anxiety by notbeinfg available.”