Review your cash control policies

Your practice size will dictate how complex you can make your cash control policies. The most common internal control calls for a "division of duties" to prevent any individual employee having control over a transaction from beginning to end. For example, assign balancing each day's office receipts to your checkout clerk, but require a supervisor or office manager to prepare the deposit.

Smaller practices with fewer staffers have a hard time following the division-of-duties principle, but you can still gain internal control by working closely with your accountant and being involved in certain transactions yourself. You might want to have an independent person, like your CPA, to come in specifically to look at the practice's current internal controls and make suggestions for revision. This might be money well spent.

Remember this: If you do ever become a victim of embezzlement, don't blame anyone but yourself if you haven't taken the steps to review your practice's internal controls and implement needed changes.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.