TRUST, but VERIFY
During a Feb. 6 event at the new Mark Arts, over 125 MSSC members and guests heard about the many ways they can prevent – or catch – fraud in medical practices.
At the Trust but Verify program, they heard from colleague Dr. David Norris, accountant Marshall Hull and Nicole Schaar of Bank SNB. Education and vigilance were at the heart of their many suggestions.
Dr. Norris, a writer and speaker on finances for doctors, gave a primer on various financial reports and on the importance of looking at numbers regularly and from a variety of angles. “You can go broke making a profit,” he said, referring to cash flow.
Among the numerous takeaways:
- Fake invoices and vendors are a major source of fraud.
- Don’t believe your practice is too small to properly separate accounting duties.
- Rotate job roles, enforce vacations.
- Bank tools such as positive pay, account sweeps and “lockboxes” can reduce risk.
- The boss – the doctors – set the tone for ethical behavior in their business.
- And nothing is more essential than regularly checking your bank accounts.
“What applies in your business needs to apply in your private life as well.” – Dr. Davis Norris, MSSC member and author of “The Financially Intelligent Physician: What They Don’t Teach You in Medical School” (available at online retailers or davidnorrismdmba.com)