Being principal, Running a successful dental practice involves a variety of skills that you may not have considered as an associate with a view to ownership, along with excellent clinical skills, fabulous customer service you need the whole gamut of business skills including financial control, leadership, and HR skills, There is so much to do, you cannot do it yourself, you will have to delegate. Unfortunately, sometimes when principals delegate financial element of their business, money can go missing.
Because we know that embezzlement and financial irregularities can occur, it's crucial to be vigilant , be aware of the signs and symptoms and design systems and processes that will prevent money going missing. Today I would like to share some of the red flags to pay attention to that may rise your suspicions. Suspicions may be a team member behaving badly or that your bank card has been cloned or event your bank account hacked.
Inconsistent cashing up.
The first sign could be at the end of the day when the cashing up is being done along with the reconciliations, the money is out, there is a difference between the sums recorded and what is in the till.
Banking anomalies.
Another early sign could be when the monies that appear in your bank accounts don’t tally with the daily takings. this is often overlooked when accounts are infrequently reconciled or when multiple days banking happens at one time.
Cash flow shortfalls.
A sudden and unexplained decrease in cash flow or revenue could be a warning sign. If you notice a significant drop in income without a clear explanation.
Unaccounted Expenses.
Unexplained or excessive expenses that don't align with your practice's operations for example sudden bills for stationary, inks etc that the practice doesn’t use.
Missing Receipts and Documentation.
whether it be petty cash or larger purchases, usually online such as amazon, when receipts, invoices, or financial documents are missing or incomplete, it can be an indication that practice money is being diverted and can be challenging to track where the money is going.
Unexpected Stock Discrepancies.
If you have items such as electric toothbrushes, whitening gels, facial aesthetics materials, and other items that are going missing, it could be that patients are lifting them, or a team member is using them for their own personal use or to sell them online.
Staff Behaviour.
When a staff member is taking money or products there is usually a change in behaviour, you would expect people involved to become defensive, secretive, or overly protective of their duties. a close friend of mine who spend years investigating workplace fraud says the thief is often the person you would least expect, the hardest working, arrives, earliest, leaves last, the person who appears most loyal. Perceptions can be deceiving.
Personal Financial Problems.
It is by no means every team member who is struggling financially will have sticky fingers, yet those who are struggling financially may find the temptation overwhelming. I have had cases where the team member is in a relationship experiencing coercive control and is pushed into taking from work.
Excessive Overtime or Unapproved Payroll Claims.
Another way that your money may be misappropriated may be through fraudulently claiming overtime. Keep an eye out for staff working excessive overtime without a clear reason or unauthorised adjustments to payroll.
Lifestyle Inconsistencies.
A display of lifestyle inconsistent with their wages could be a warning bell that money is being obtained fraudulently and a sign of embezzlement.
Reluctance to Take Time Off.
Employees involved in financial wrongdoing may be hesitant to take time off, fearing their absence could expose their activities.
Lack of Financial Controls.
If your practice lacks proper financial controls, such as defined duties with a deputy, regular financial audits, it becomes easier for money to go missing undetected. Robust financial controls and processes are essential.
Patient Concerns.
Sometimes, patients may notice irregularities in billing or payment processing., such as being asked to pay a second time. It is important to take your patient concerns seriously and investigate any concerns raised.
To protect your dental practice from financial irregularities, consider implementing strong financial controls, conducting regular audits, and providing training for your staff on ethical financial practices. If you suspect embezzlement or financial misconduct, consult with legal, financial experts and maybe the police to investigate the matter thoroughly.
For you to be able to focus on providing excellent dental care and practice development, you need the peace of mind that is provided your systems that your practice's finances are safe. From personal experience, detecting and addressing financial irregularities early can save you from significant financial losses and a lot of stress.
I hope you have found this blog helpful in raising potential weaknesses in the financial issues that may arise your dental practice. If this raises any issues for you and you have specific questions or would like further assistance, please feel free to get in contact with me, you can use the Speak with Jane button for a complementary conversation, www.IODB.co.uk
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