Optimize Your Financial Accounting Practices
How to Protect Yourself from Occupational Fraud: Optimizing Your Financial Accounting Practices
Occupational Fraud. What is it, and how do you protect your practice from it?
The definition, in short, is when your employees use their power for personal gain at the expense of your practice. This is something that employers don’t want to face. It means that the people entrusted with their company assets are against them. Distrust is a scary subject in the life of a dental practice owner.
Pay Attention to Company Culture
No matter how small your practice may be, you will still have a company culture. Outlining that culture is your opportunity to highlight what you expect. You have a basis by which to hire your employees so you are recruiting a good fit.
Delegate Separate Financial Tasks
Ensure that no one employee has sole ownership over a financial task. Several employees can be accountable for cash conversion cycles. There should be sign-off sheets. Signatures are more valuable than computerized e-signatures. The following shift can sign off on cash verifications and so on. Be as creative as the company and the law will allow.
Replace Your Risky Way of Signing Financial Documents
Dental practice owners like to streamline payments and that is OK. What you need to consider most of all is the risk of forgery. Rubber stamps are outdated, and there’s a good reason. There is no way to compare a signature if it’s rubber-stamped. Then you have the time-consuming task of finding out who wielded the stamp. This is the most prominent opener to fraud.
Likewise, the replacement for check signing is no better. Electronic signatures are not helpful. There really needs to be a person designated to sign checks. This avoids the need to analyze a computer screen looking for subtle clues in an e-signature.
Hire A Dental Accountant
Hiring a dental accountant is the best way to deter occupational fraud. If your employees understand that there’s an unbiased person with eyes on your practice. Fraudulent acts are prevented. Think about it. What does the dental accountant have to lose by blowing the whistle on fraudulent practices? What do you have to gain? Fraud prevention, of course.
Audit Trail Software and IT Security
Audit trail software, are programs that detect activity outside the norm for your business. Additionally, there are measures that should be taken to ensure your business against cyber-sabotage from the inside and the outside. For example, make sure every system and device has the most up to date firewalls and antivirus software.
Learn More with Our Accounting Services
In general, protecting your practice involves many techniques such as fraud prevention. Learn how to best protect your unique practice with a consultation. Ash Dental CPA has over 20 years of experience assisting dental practices of all sizes. We offer many services such as accounting, bookkeeping, practice incorporation, tax planning, tax preparation and filing, wealth management, and more. Moreover, new and existing clients should call (508) 458-6789 or request an appointment online. We look forward to meeting you soon.