Medical practices are largely cash businesses and have the highest embezzlement rate of any service industry. Every medical practice, regardless of size, specialty or location, is a potential victim of employee theft and embezzlement.
While we would all like to believe our employees are honest, that is not always the case. Having financial safeguards in place can help ensure you recognize warning signs and protect your practice from embezzlement.
Follow these tips to reduce your practice's risk of theft:
- Perform a criminal background and credit check on all new employees.
- Use a lockbox for petty cash.
- Record every type of transaction (e.g., write-offs, refunds, adjustments).
- Segregate duties and cross-train employees.
- Restrict signature authority on the checkbook.
- Have an annual audit by a certified public accountant or practice management consultant.
If you think your practice is at risk for employee theft, don't wait to take protective measures. Schedule your customized internal controls assessment today by contacting TMA Practice Consulting at (800) 523-8776 or e-mail an expert from the TMA Practice Consulting team.
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