Watching Out For Employee Theft

Provided by ePractice Manager

Though more easily hidden in large companies, the majority of fraud and theft cases occur in those with fewer than 100 employees, according to a study by Statistic Brain.

The study also found that 7% of annual revenue is lost to employee theft and fraud.¹

Tips on preventing fraud and theft within your practice

Each of these should be instituted by the doctor or owner of the practice, or a trusted office manager.

  • Split the allowances. Make sure the employee who writes the checks is not the one that manages the books.
  • Watch your receivables. If you see a significant increase in receivables aging, and/or bad debt, look into it very closely.
  • Have personal monthly reviews. Schedule a regular monthly review of the journal entries, checking for anything that looks out of line.
  • Use your home address. Always send your personal credit card statements to your home address.
  • Limit final sign-off. Institute an office policy that you are the only person who can sign any business checks.
  • Have regular third-party audits. This is key. Set up a regular audit of your books by a competent outside bookkeeper or accountant.

While these points are all very important, proper hiring and training of finance staff is the best insurance against fraud and theft.

¹“Employee Theft Statistics–Statistic Brain.” 2017 Statistic Brain Research Institute, publishing as Statistic Brain. April 1, 2017*

For more information and training on proper hiring techniques, you can enroll in ePracticeManager’s HR course series.
2017-10-05T21:08:34+00:00 October 5, 2017|Categories: HR, Money|Tags: , |