The Best Practices Show with Kirk Behrendt 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
- Embezzlement requires both theft and concealment, and separating duties makes concealment harder.
- Enter treatment in the operatory by the clinician present so patient balances exist before payments are taken.
- Start by entering the full fee and use adjustments to document intentional discounts.
- In the revenue cycle, limit any one person to no more than two financial tasks.
- Do not allow the same person to perform consecutive steps in the financial workflow.
- Balancing must occur daily, even though it is more complex now due to multiple payment methods and timing delays.
- 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:
- Prosperident: https://www.prosperident.com
More Helpful Links for a Better Practice & a Better Life:
- The Best Practices Show: https://www.actdental.com/podcast/
- Best Practices Association: https://www.actdental.com/bpa
- Upcoming Events & Workshops: https://www.actdental.com/events/
- Smile Source: https://www.smilesource.com/
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