4 more tips to avoid embezzlement

June 13, 2011
Dental practices are far more vulnerable to employee fraud and embezzlement than you might think. Donald P. Lewis Jr., DDS, CFE, shares four more tips you can use to protect yourself from being a victim of embezzlement.

By Donald P. Lewis Jr., DDS, CFE

  • Bank deposits — The employee responsible for collecting patient payments should not be the same employee responsible to creating the bank deposit. These bank deposits should be made on a daily basis.
  • Accounts receivable — The balance of the accounts receivable should be balanced with the patient ledger. All write-offs and adjustments should be authorized by the doctor. The audit trail should be reviewed on a daily basis along with an independent audit of all accounts. A periodic review of the accounts receivable should be done with attention to uncollectable accounts to look for write-offs.
  • Delinquent accounts — The office should have a written policy in regard to delinquent accounts. This should include when the accounts are turned over to a collection agency and which agency is used.
  • Accounts payable — Establish an inventory control system that utilizes a payment voucher system to make sure the supplies ordered are supplies received. Also, this system will allow you to have more control over spending on supplies. Beware of any employee who seems to have a close association with vendors.

Author bio
Donald P. Lewis Jr., DDS, CFE, is an expert in fraud and embezzlement, a diplomat of the American Board of Oral and Maxillofacial Surgery and is currently in private practice in Cleveland, Ohio. For more information on Dr. Lewis’ seminars or books, access Fraudnetpro.com or email him at [email protected].