Fraud is a common occurrence in many business enterprises, and the dental industry suffers from it too. Dishonest employees are everywhere, and dental practices are no exception. This set of fraudulent individuals perpetrate all sorts of financial atrocities in a bid to better themselves, subjecting the victim’s business to a series of financial woes.
Theft in dental practices comes in several dimensions: cash theft, falsification of expense accounts, check fraud, unauthorized card usage, etc. Even more disturbing is the fact that the culprit usually turns out to be the dentist’s most trusted employee, one that you can never suspect. Due to the trust the owner has for them, they tend to have unhindered access to finances, credit cards, and cash, which gives room for them to perpetuate the dastardly act easily.
The impact of fraud on the well-being of a business is usually significant. In severe cases, it might lead to such an enterprise’s demise as they would be grossly incapacitated financially and find it challenging to keep up.
As a dental practice owner, there’re ways to prevent fraud in your business. This article will be examining some of them.
1. Develop a Habit of Conducting Monthly Financial Reviews
One particular trend that comes with fraud in a dental practice is their tendency to last for months or even years before you uncover them, a time when it’d probably be too late to revive the business. To avoid becoming a victim of employee theft, develop a habit of conducting thorough reviews of your bank’s financial statements, including credit card statements, payroll reports, etc. For best results, engage a dental CPA in Kansas City to properly vet your financials.
Performing this exercise enables you to detect discrepancies or fraud sooner before they get serious. It’ll also allow you to know where you stand financially.
2. Protect Your Audit Software with Passwords
Whether you take care of auditing yourself or you hire a dental CPA in Kansas City, it’s necessary that you adequately secure your audit software like Quickbooks, to prevent unauthorized access. Leaving them unsecured will subject your files and figures to unwarranted alterations by employees looking to play a fast one on you. Use strong passwords that include letters, numbers, and unique characters, and ensure they’re easy to remember.
3. Adequately Monitor the Flow of Income in the Business
Pay utmost to cash flow, be aware of incoming patients’ cash, and ensure you record them as they come. Also, consider setting up a system that automatically records income and expenses in the business.
- Keep a close eye on the amount spent on dental supplies every month. Look out for significant changes in the quantity and amount; it could be evidence of embezzlement.
- Look out for duplicate transactions in the financial statements, especially in the accounts payable section.
No business owner wants to become a victim of theft or fraud; however, many still find themselves in such a situation. Putting up measures and practices to forestall it is highly essential. Ensure you seek the guidance of a dental CPA in Kansas City to execute these tips properly.