1013: The 6 Divisions of Duties To Prevent Embezzlement In Your Dental Practice - David Harris

Do you know exactly where money can slip through the cracks in your practice—and what to do about it before it becomes a major problem?

In this episode, Kirk Behrendt brings back David Harris, dental-exclusive forensic investigator and embezzlement expert, to break down the division of duties in a dental practice and explain how to apply it in real workflows. You’ll learn the six-step revenue cycle, the three rules that reduce opportunity for theft, and practical ways to create checks and balances in both large and small practices. Listen to Episode 1013 of The Best Practices Show!

Main Takeaways

1. Embezzlement requires both theft and concealment, and separating duties makes concealment harder.
2. Enter treatment in the operatory by the clinician present so patient balances exist before payments are taken.
3. Start by entering the full fee and use adjustments to document intentional discounts.
4. In the revenue cycle, limit any one person to no more than two financial tasks.
5. Do not allow the same person to perform consecutive steps in the financial workflow.
6. Balancing must occur daily, even though it is more complex now due to multiple payment methods and timing delays.
7. Practice owners should reconcile monthly by comparing collections in software to bank deposits and tracking variances over time.

Snippets

00:00 Welcome

01:49 Meet David Harris

03:33 How Common Embezzlement Is

06:58 Why Division Matters

11:03 Revenue Cycle Breakdown

12:27 Rule One Enter Treatment

17:22 Rule Two Limit Roles

19:53 Small Practice Workarounds

21:18 Mail Check Oversight

23:11 Balancing Gets Complex

25:59 Monthly Reconciliation Method

28:35 Spotting Theft Patterns

31:01 Trust Systems Not People

33:59 Discreet Audit Options

35:20 Risk Assessment Tools

37:33 How to Contact Them

38:47 Closing Takeaways

Guest Bio/Guest Resources

David Harris is a dental-exclusive forensic investigator who has spent more than three decades investigating employee theft and embezzlement in dental practices. He works with a team that conducts forensic audits and investigations focused exclusively on dentistry, helping practice owners identify risk and implement systems to reduce opportunity for theft.

Resources mentioned:

1. Prosperident: https://www.prosperident.com

More Helpful Links for a Better Practice & a Better Life:

1. The Best Practices Show: https://www.actdental.com/podcast/
2. Best Practices Association: https://www.actdental.com/bpa
3. Upcoming Events & Workshops: https://www.actdental.com/events/
4. Smile Source: https://www.smilesource.com/
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