Safeguarding Financial Integrity

Financial systems help office managers in various ways, including reducing the risk of financial loss that can occur. These include financial loss resulting from any of the following:

• Embezzlement: Employees with access to financial resources may engage in dishonest activities. These can range from misappropriating patient revenue to incorrect insurance claims management.

• Billing errors: Undetected mistakes in billing can lead to revenue loss.

• Staff accountability: Strong safeguards help office managers establish accountability among team members.

• Trust and verification: Having clear documentation and roles allows office managers to build trust with practice owners and staff as well verify that systems are functioning. This will build rapport between office manager and practice owner.

Internal controls are fundamental to financial security. For dental offices, the following measures are essential:

• Segregation of duties: Divide financial responsibilities among different employees. For example, the individual handling cash should not be the same person recording transactions. This reduces the risk of fraud and errors.

• Regular audits: Conduct both internal and external audits regularly. Audits help identify discrepancies, ensure compliance with financial policies, and improve overall financial practices.

• Access controls: Restrict access to financial information. Only authorized personnel should have access to sensitive financial data and systems.

• Software safeguards: Develop and enforce SOPs for financial transactions, including clear guidelines for billing, cash handling, and expense reporting.

Accurate financial reporting and regular monitoring are crucial for maintaining financial health. Office managers should incorporate the following into their workflows:

• A routine for daily reports: Implement reliable accounting software that automates financial processes and generates detailed reports.

• Monthly financial reviews: Conduct monthly reports and provide this information to your practice owner and accounting specialist to help ensure that systems are being followed.

• Document expenses: Develop a system for supplies and ordering that will ensure documentation is being completed for all transactions.

Preventing financial loss and implementing safeguards requires a proactive approach:

• Pre-employment screenings: Conduct thorough background checks before hiring employees.

• Whistleblower policies: Establish a whistleblower policy that encourages employees to report suspicious activities without fear of retaliation. These whistleblower policies will allow confidentiality and allow employees to interact with the practice owner in the event of seeing fraudulent activity.

• Employee rotation: Rotate employees' duties periodically to reduce collusion risk and detect fraudulent behavior.

Technology can be a powerful ally in ensuring financial security:

• Automated billing systems: Automated billing systems reduce human error and streamline the billing process.

• Software updates: Ensure your practice management software is current and updated. Determining that your software is closing so that transactions cannot be altered in the future is also crucial.

• Permissions: Having a separation of responsibilities in your practice management software is crucial. Establishing clear, defined roles in your practice management software will help you with oversight and communication when staff members are involved in financial transactions.

Creating a culture of financial responsibility within the office is essential. Encourage your team to take financial security seriously by:

• Regular training:Provide ongoing training on financial policies and procedures.

• Clear communication: Clearly communicate the importance of financial security and the role each employee plays in maintaining it. This includes end-of-day reports, accounts receivable management, and insurance claims management. Regular review of these with the staff help with accountability and oversight as an office manager.

• Documentation and retention: It is imperative to keep records both daily and monthly. This will allow you and the practice owner to determine any changes or discrepancies that are occurring within the practice.

As an office manager in a dental practice, ensuring financial safeguards and security is a multifaceted responsibility that requires vigilance, strategic planning, and ongoing education. By implementing strong internal controls, you can protect your practice from financial risks that could occur without your knowledge. Transparent financial systems with accurate documentation allow office managers to be one of the biggest safeguards in the practice and provide a level of financial stability and integrity.

Amber Weber-Gonzales began working in the dental field as a Registered Dental Hygienist in 2005. With a background in accounting and her interest in the business side of dentistry, she moved into office management roles and, ultimately, into dental consulting. In June 2022 she was appointed the head of the Proactive Services Group at Prosperident. Amber is a member of the Speaking Consulting Network, featuring dentistry's best-emerging speakers, and she has been published in Dentistry Today magazine.