Fortifying Your Practice Against Financial Risk

Financial embezzlement is one of those topics no doctor wants to think about, but every doctor needs to. In a recent episode of the Hey Docs! Podcast, Jill Allen sits down again with returning guest David Harris, CEO of Prosperident, to talk about how embezzlement actually happens and, more importantly, how to prevent it before it ever becomes an issue.

This conversation moves past the scare tactics and into real, practical safeguards that every dental and orthodontic practice should have in place. From smarter hiring to tighter financial systems, David shares what he sees every day in practices across the country.

Hiring Right Starts with Avoiding the Wrong Hire

One of David’s biggest takeaways is a mindset shift around hiring. It is not just about finding the perfect candidate. It is about making sure you do not bring the wrong person into a position of trust.

Pre-employment screenings play a major role here. These screenings help uncover red flags like past criminal activity or repeated patterns of problematic behavior before someone is handed access to sensitive financial systems. As David puts it, your practice is a “very special place,” and the people you invite into it should be vetted accordingly.

Financial Oversight Is a System, Not a Person

When it comes to embezzlement prevention, there is one rule that matters more than almost anything else: no single person should control the entire financial process.

David explains that dividing financial responsibilities across multiple team members creates built-in accountability. The person entering transactions should not be the same person handling deposits or reconciling accounts. These simple checks and balances dramatically reduce risk and make it much harder for issues to go unnoticed.

This is not about distrust. It is about smart systems that protect both the practice and the team.

Technology Helps, But Only If You Use It Correctly

As more practices move toward electronic payments and digital banking, new vulnerabilities can pop up. Convenience does not equal security.

One practical strategy David recommends is setting up a separate account for electronic funds transfers, with view-only access for staff. This allows doctors to easily confirm that deposits match collections and quickly spot discrepancies. Technology can absolutely be an asset, but only when paired with intentional oversight.

Why Owners Still Need to Stay Involved

Even with strong systems and trusted advisors in place, financial oversight cannot be fully outsourced. David emphasizes that practice owners should regularly review reports, monitor end-of-day numbers, and stay engaged with what is happening financially.

You do not need to micromanage, but you do need visibility. That awareness is often what prevents small issues from becoming very big problems.

The Bottom Line

Protecting your practice financially is not about fear. It is about preparation. Strong hiring practices, clear financial roles, smart use of technology, and consistent owner involvement all work together to reduce risk and create long-term stability.

If concerns already exist or you want help strengthening your safeguards, Prosperident provides specialized expertise in both prevention and investigation. And if you want to hear the full conversation, this episode of the Hey Docs! Podcast is well worth a listen.

Because the best time to protect your practice is always before there is a problem.