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Doctors, Why reconciling Bank Deposits to your PM System is so Important
01/29/2025
Doctors, Why reconciling Bank Deposits to your PM System is so Important
Reconciling Bank Deposits with Practice Management Software: A Crucial Practice for Financial Health Episode Summary: This episode explores the vital process of reconciling bank deposits with practice management software in healthcare practices. We'll discuss why this seemingly simple task is a "best practice" and the serious financial risks of overlooking it. The discussion will highlight real-world examples of embezzlement and fraud that have been uncovered through this process. Key Discussion Points: Why is Reconciliation Necessary? The episode emphasizes that reconciling deposits is essential to ensure financial accuracy, identify posting errors, and, most importantly, prevent theft. We will discuss how a lack of reconciliation can result in significant financial losses. The Complexities of Reconciliation: We will delve into the challenges of reconciling various payment types (cash, credit cards, checks), bulk ACH deposits, and timing differences between services provided, payments received, and bank deposits. The Reconciliation Process: Experts will explain their specific reconciliation processes, including how they compare reports from practice management systems with bank statements. We'll also discuss tracking different payment methods and using spreadsheets for organization. A key part of this process is ensuring the reconciliation ties to the general ledger income account. Identifying Discrepancies: The episode will cover how to recognize and address discrepancies, including acceptable variance thresholds, deposits in transit, and prior deposits that have not cleared the bank. We will discuss the importance of daily reconciliation of all collected monies against the day's schedule. Real-Life Embezzlement Examples: We will share compelling stories of how embezzlement has been uncovered through the reconciliation process, including tactics such as substituting checks for cash, creating fraudulent bank accounts, and setting up sham companies. Best Practices: This episode will offer actionable advice for improving reconciliation practices, such as involving multiple people in the deposit and reconciliation process, separating the tasks of posting payments, and spot-checking deposit slips from the bank. The importance of tracking every invoice and payment in the system will also be discussed. Why Doctors Often Don't Prosecute: The discussion will cover the common reasons why doctors might hesitate to prosecute embezzlers, and why prosecution is essential to prevent future crimes at other practices. Communication and Buy-In: We will emphasize how to communicate the importance of reconciliation to doctors and office staff, ensuring that everyone understands their role in this process. Call to Action: Listeners will be encouraged to evaluate their current practices, implement best practices, and prioritize this process to safeguard their financial health. Target Audience: Practice managers, accountants, medical and dental professionals, and anyone involved in the financial management of a healthcare practice. This podcast episode will provide practical advice, and insightful real-world examples to equip listeners to protect their practices from financial risk.
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