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The amount of lost profits is determined by estimating the profits that would have been earned during the loss period if the damaging act hadn't occurred. These estimated revenues are then adjusted by the costs that would have been necessary to generate that revenue.

If a plaintiff's business continues to operate, albeit at a lesser level of profitability, it is during that time period that a claim for lost profits may be determined. If, subsequently, the plaintiff's business ceases to operate, the plaintiff may then claim a loss of business value.

The difference between a certified public accountant (CPA) and a forensic accountant is that a CPA will often specialize in areas such as taxation, solvency or financial reporting and be licensed to open a business. A forensic accountant combines accounting knowledge with investigative skills.

Often, one of the final steps in determining lost profits, if any, is the calculation of saved/avoided costs. Saved or avoided costs are those that, in order to achieve the calculated lost revenues, would have been incurred but for the intervening event/act.

Forensic accounting is a type of accounting that investigates financial information for potential evidence of crimes. Forensic accountants use accounting, auditing, and investigative skills to understand whether a person or company has committed financial misconduct, such as embezzlement or fraud.

Forensic accountants act as financial detectives, examining questionable financial data, investigating fraud, and aiding in civil and criminal investigations.

Forensic accounting services generally involve the application of specialized knowledge and investigative skills possessed by CPAs to collect, analyze, and evaluate evidential matter and to interpret and communicate findings in the courtroom, boardroom, or other legal or administrative venue.