Forensic Accounting
At The Beckage Firm, we are committed to providing comprehensive support to our partners and clients in the wake of cyber incidents. Our team provides detailed summaries of lost profits and business interruption losses resulting from data breaches or cyber attacks, aligning with policy requirements to support claims submission. We aim to ensure claims are well documented and strategically positioned for efficient processing and favorable outcomes.
By integrating our forensic accounting expertise into our incident response framework, we help carriers and policyholders navigate the financial complexities of cyber incidents. From calculating damages to estimating loss of income, our services are designed to facilitate the swift and accurate assessment of claims, aiding in the prompt recovery of financial stability.
If you have any questions or would like to discuss how our forensic accounting services can support your claims process, we would be happy to schedule a call to review the details.
Tim McPoland has over 35 years of experience in forensic accounting and lost profit analysis. A former director at a Top 100 accounting firm, he provided consultation and expert witness testimony on complex financial matters, particularly lost profit analyses. Tim holds certifications as an Accredited Business Valuator (ABV), Certified Fraud Examiner (CFE), Certified Public Accountant (CPA), and Certified Valuation Analyst (CVA).
Before and After Method:
Compare the company’s performance before and after the damaging event. The difference in performance represents the lost profits.
Yardstick Method:
Compare the affected company’s performance during the loss period to similar companies that were not affected. The yardstick method is typically used when there is not a reliable track record for profitability. However, using this method has its own challenges. It’s incredibly factintensive and requires expert calculations, market research, knowledge of industry trends, and more.
But For Method:
Estimate what the profits would have been “but for” the damaging event, then subtract the actual profits earned.
= –
*Avoided costs are the expenses that the company did not incur due to the loss of revenue.
Preparation of projected lost revenue and related expenses during the loss period to determine lost profits.
Determination of fixed versus variable operating expenses
Review of historical operating results to determine reasonableness of lost profits. How reliable are historical financial data.
Management action limiting losses during loss period
At The Beckage Firm, we believe that the most effective response to cyber incidents integrates legal, technical, and financial expertise. Working in close collaboration with our legal teams, cybersecurity specialists, and privacy professionals, we help organizations navigate all aspects of a cyber crisis—from immediate incident response to long-term financial recovery
Our forensic accounting services are designed not only to assist with recovery but also to guide proactive strategies. By analyzing the financial impact of past incidents, we help clients better understand their vulnerabilities and work closely with our cybersecurity and legal teams to build more resilient systems and processes. Contact us for more information.
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