Forensic accounting

Partner and shareholder dispute accounting

Partner and shareholder dispute accounting from Finbryn reconstructs each partner's capital account from formation through the date at issue, traces distributions and compensation to each person, and shows where the books do or do not support what each side claims. Counsel, a mediator or a court decides who is right from that record.

What is included

• Capital account schedule reconstructed for each partner or shareholder
• Distribution, draw, and compensation trace by individual owner
• Reconciliation schedule comparing each party's claims to the books
• Check of actual entries against the governing agreement's terms
• Reclassification of personal expenses run through the business
• Source index linking each schedule figure to its underlying document
• Documented list of access gaps and their effect on the analysis
• Workpapers organized for counsel or a mediator to review line by line

The process

1. 1.

   Intake call

   We cover the entity's formation date, the governing agreement's terms, the period in dispute, and what records the engaging party can already access.

2. 2.

   Gather source records

   We pull tax returns, K-1s, bank statements, and the accounting file for every year the capital account reconstruction needs to cover.

3. 3.

   Reconstruct capital accounts

   We build each owner's account year by year, tracing contributions, allocated income, distributions, and any loans between the owner and the entity.

4. 4.

   Trace compensation and draws

   Salary, IRC Section 707(c) payments for services or capital, bonuses, and personal expenses run through the business are traced to each individual owner separately.

5. 5.

   Reconcile against claims and the agreement

   Each party's specific claims are laid against the reconstructed record and the governing agreement's actual terms, with matches and divergences marked.

6. 6.

   Internal review

   A senior reviewer checks the reconstruction and reviews the reconciliation for balance and fair presentation before delivery.

7. 7.

   Deliver to counsel or the mediator

   You receive the capital account schedules, the compensation trace, and the reconciliation, organized for line-by-line review.

Software

QuickBooks Online, Xero, Microsoft Excel, NetSuite

Quality control

A senior reviewer reviews the full schedule set before it goes to counsel.

Pricing

See current pricing

Contact

+1 (224) 593-2454
hello@finbryn.com
finbryn.com
WhatsApp