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*