Accounting for change - Portland Business Journal:

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Demand from business clients is up for litigation andforensic accounting, accountantzs in the Portland area say. Valuation work linked to mergers and acquisitionshas fallen. And tightef credit has increased the need for even small privatde businesses to compile financial statements that meet the strict standardsd of theirlarger peers. has seen an increase in lawsuitds by shareholders against individualsand corporations, which has heightened demanfd for forensic accounting and fraud analysis, said William managing partner. The Portland firm consultedr on behalf of investors in the case againsgt Oregon venture capitalistCraig Berkman.
Jurors penalized him $28 millionm last year, after concluding that Berkman had misused funds and lied abouthis investments. Similar litigation continues to occupy the Holmes said, though he declined to specify open cases. Geffe Mesher & Co. has experienced an increase in demanf forsome services, and decreases elsewhere. The Portland firm has historicallt offered valuation work centered around merger andacquisition activity, said Mike managing shareholder. But mergerd and acquisitions havedried up, cuttingv into demand for those Meanwhile, forensic accounting work is up. “Durinhg tough economic times, fraudulent activityt does increase,” Rompa said.
Businesds clients are increasingly calling on Geffeb Mesher to review their internal controlsd and identify possiblefraudulent activity. Geffen Mesher is also preparing more complex financial reportsa for small andprivate businesses. Banks have growh more cautious aboutmaking loans, and increasingly requirse businesses to submit financiapl statements that adhere to the U.S. Generally Acceptecd Accounting Principles, Rompa This has created work for accountingy firms that specialize in small andprivatwe businesses, which historically have not had to use accounting principles developed for public companies.
“The more prolific the accountingfstandards are, the more difficultg the smaller business finds it to complgy with those standards,” Rompza said. “The cost of compliance has skyrocketed.” Those strictefr standards are the result of increased scrutinuyon banks, which has creates work for accounting firm of The firm counts a number of banks amongy its clients, said partner Mark As bad loans take a toll on bank balance state and federal regulators have required many banks to conducrt thorough reviews of theier loans, generating work for the banks’ accountants.
Demand across business clientas is up for strategicplanningh help, Business clients face slim profit margins, or even losses, and are calling on accountants to identify strategicf moves, Symonds said. “Nobody knows how long this recession is goinfgto last, but we can help clienta identify changes they may need to make to busineses practices.” Holmes and Co. has likewises seen an uptick in this kind of consulting The firm has adopted a policy of open investing in communications technology to make employees accessible arounfdthe clock. “Clients have a lot of anxiety about their future, their families, their banking Holmes said.
“We don’t want to create more anxiety by notbeing