Financial Controls in a Medical Practice with Jay Holmes

Episode Summary

Having financial controls in place reduces the risk of fraud opportunities popping up.

We are back again with Jay Holmes as a guest. This time talking about the importance of financial controls in medical practice. Financial controls don’t only refer to fraud and embezzlement, but consistency in reporting. Generating a fluid process to produce data is fundamental. A constant eye on the team may feel like having a policeman watching every move. Controls are about creating trust and transparency in the processes. The segregation of duties closes the door to embezzlement and fraud.

Jesse’s picking Jay’s accountant brain in this second episode of the Financial Practices series!

Key Take-Aways

• The stronger the processes the less oversight and energy needed.

• There are two sides to financial controls: receipt writing and accurate data generation.

• Financial controls are also about trust in the team.

• Start the controls by process mapping.

Resources

• Find out more about the Fraud Triangle Theory here: https://corporatefinanceinstitute.com/resources/knowledge/accounting/fraud-triangle/