Cash controls in your office involve the proper use of several rather simple bookkeeping systems. But if they’re not done consistently, it opens up the door for employee embezzlement.
Check Signatures
Only the physician or dentist should have signature privileges. And by all means, do not allow your personnel to use a signature stamp.
Although it may be convenient to delegate such responsibilities, it can lead to problems. Signing each check forces you to see where the cash is going.
Receipts
Most receipts come from two major sources; your patients and third-party payors. Other receipts occasionally come from outside clinical work, teaching or consulting, or sales of incidental office products.
All receipts, regardless of the source, should be deposited into the checking account and reconciled daily. I suggest that each practice have their office manager keep a reconciliation worksheet that summarizes and reconciles the receipts for each day of the month.
In addition, require a receipt for any payments made by your patients and that the method of payment is indicated on the receipt. A bank deposit, in duplicate, should be made out daily to match the day’s income.
If the deposit does not reconcile to your practice management report or manual “day sheet”, the office manager should note the difference on the reconciliation summary.
The deposit slip should list cash, coin, and checks separately. If possible, the deposit should then be taken to the bank daily.
Make sure that your office policy for checks received is that all checks are immediately stamped, “for deposit only.”
Disbursements
Invoices of received goods or services should be saved and compared with bills to determine the bill’s accuracy.
I suggest that office managers pay bills twice-monthly on a regular basis and only prepay expenses that might result in some form of discount.
The check number and date paid should be written on each bill. If the check-writing system you use produces an extra stub for your records, then simply attach the stub to the bill being paid. Paid bills should be saved and filed by the month paid to make it easy to follow checkbook activity and retrieve a bill or invoice, if necessary.
No checks should be issued without a bill, invoice, or some type of written explanation. It is also a good policy for the practice to limit the use of the professional checking account for business use only. Personal expenditures should not be mixed with the business account.
Petty Cash
Many offices have a petty cash drawer. This is where cash is kept for small, miscellaneous expenses. You can fund the petty cash drawer with a check out of the business for $50-100.
Assign one person in your office the responsibility for maintaining a log of expenditures. Payments of cash should be replaced with a receipt or record of expenditure.
When the cash is expended, the receipts are replaced with a new check from the checking account and the receipts should be filed with the month’s paid bills. Never fall into the habit of “borrowing” from the petty cash fund.
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