OTUS0610

ORTHO TRIBUNE | JUNE & JUly 2010 Practice Matters 15 Therefore, the first order of busi- ness in protecting practice finances is to divvy up the financial duties. The orthodontist may want to do only the orthodontics, but this atti- tude is inviting disaster. As one Wisconsin clinician dis- covered not long ago, his trusted employee of 28 years who had “total run of the practice’s financial oper- ations” was accused of stealing at least $41,000 and that was believed to be just the tip of the iceberg. Separating billing, collections and delinquent account responsi- bilities is critical. The employee making the bank deposit should not be the same employee responsible for checking the deposit slip that is returned from the bank. Consider rotating the respon- sibility for making bank deposits among employees and monitor deposits for unexplained increases or decreases. Look at the reports daily. In par- ticular, examine the day sheet and the deposit. Investigate any adjust- ments made on the day sheet. Pay close attention to increases in refunds or write-offs, large adjust- ments or missing documents. Print and review an audit trail report daily. It reflects every trans- action that has transpired in the office since the last printed audit trail. In addition, generate a monthly report that lists all patients who have had changes made to their accounts. This helps to identify a recurring problem or detect a dis- crepancy. Routinely conduct ran- dom checks of different accounts. In practices with small staffs, the orthodontist must take a much more active role in monitoring the financials. Ideally, the orthodontist should write all the checks and do his/ her own accounts payable. The orthodontist should recon- cile the bank statement monthly and cancelled checks should be sent, along with the bank statement, to the orthodontist’s home. In addition, monthly credit card statements should be received unopened and compared with original receipts of purchases. This enables the orthodontist to know exactly where the money is going. Checks received should be imme- diately stamped on the back with the practice’s bank deposit endorse- ment stamp. Periodically check the account number to ensure it is the practice’s account. Do not use sig- nature stamps. All employees should be required to take at least one week’s vaca- tion every year, particularly those in charge of practice finances. And, most importantly, don’t let the work pile up. During that time, the vaca- tioning employee’s duties should be carried out by someone else. Pay attention to key red flags. According to the ACFE report: “Fraud perpetrators often display behavioral traits that serve as indi- cators of possible illegal behavior. The most commonly cited behav- ioral red flags were perpetrators living beyond their apparent means (39 percent of cases) or experienc- ing financial difficulties at the time of the frauds (34 percent).” Finally, take complaints serious- ly. If patients claim that they’ve paid but didn’t receive credit, investigate it. If an employee tips you off that something isn’t right, check it out. If you sense things just aren’t adding up, don’t dismiss it. Ignorance could cost you thou- sands, if not millions, of dollars. OT AD f OT page 12 Sally McKenzie, certified man- agement consultant, is a national- ly known lecturer and author. She is CEO of McKenzie Management, which provides highly successful and proven management services to den- tistry and has since 1980. McKen- zie Management offers a full line of educational and management prod- ucts that are available on its website, www.mckenziemgmt.com. In addition, the company offers a vast array of practice enrich- ment programs and team training. McKenzie is the editor of the e-Man- agement newsletter and The Den- tist’s Network newsletter sent compli- mentary to practices nationwide. To subscribe, visit www.mckenziemgmt .com and www.thedentistsnetwork. net. McKenzie can be reached toll free at (877) 777-6151 or at sallymck@ mckenziemgmt.com. About the authorOT