270: Best Financial Practices to Keep the Money You Earn - David Harris

Best Financial Practices So You Can Keep the Money You Earn 

Episode #270 with David Harris 

“Embezzlement? That can never happen in my practice!” Well, it can — and most likely will — according to dental embezzlement expert, “professional cynic,” and CEO of Prosperident, David Harris. Today, on The Best Practices Show, Kirk Behrendt interviews David to reveal the shocking prevalence of financial fraud in dental practices. Using his vast experience from fraud investigation, David will teach you the best financial practices so that you keep the money you earn! For advice on how to avoid embezzlement in your practice, tune in to Episode 270 to learn more! 

Main Takeaways: 

- Embezzlement is a huge problem in dentistry. Don't assume it won't happen to you! - It can happen multiple times. 

- Do a basic comparison between the software and the bank. 

- Outsource a separate set of eyes to third parties. 

- There is a knowledge gap between doctors and staff. 

- Dentists should supervise the staff’s day-in process that they don't understand. - Get direct, not indirect, information. 

- Most dentists are unfamiliar with their practice management software. 

- The wreckage of embezzlement goes way beyond the money. 

Quotes: 

- “80% of dentists will get embezzled, sooner or later.” (03:31—03:04) 

- “The worst thing a dentist can do in terms of setting themselves up for embezzlement is to hire somebody who knows how to do it.” (05:42—05:47) 

- “35% of dentists don't compare how much money the software says was collected with what went in the bank. If that isn't done, what you're doing is you're opening the door to the stupidest, laziest thief on the planet.” (07:32—07:49) 

- “Sometimes embezzlement, I think, started by accident.” (14:06—14:09)

- “There's almost inevitably a knowledge gap between the staff member and the doctor in certain areas, and not in the doctor’s favor.” (15:17—15:24) 

- “[Some dentists] tend to feel like, ‘I have more education than this person. My IQ’s probably higher than theirs. And therefore, in a battle of wits, I should prevail.’ It’s just not that simple. These folks know a lot more than the doctor about the things that are relevant to stealing.” (16:17—16:39) 

- “Transparency is the first casualty of embezzlement.” (21:39—21:41) 

- “If you hire somebody who is inherently a thief, it’s a ticking time bomb. And you can't watch everything that would need to be watched to prevent that.” (24:12—24:25) 

- “Not every embezzlement is attributable to a bad hiring decision.” (25:15—25:18) 

- “The problem with the software is called D-O-C-T-O-R. Most software comes out of the box pretty secure. And then, people in the practice do things to undermine it.” (29:31—29:43) 

- “It’s not like there's going to be a COVID-19 that hits computers, and you come into your practice one morning and they're all gone. That's not going to happen. For the rest of your career, whether it’s two years or 30 years, that practice management software is going to be really important to you. So, let's acknowledge that and quit hoping that it just disappears one day.” (51:17—51:41) 

- “Trust, but verify.” (52:19—52:20) 

- “People are self-interested creatures. And it’s hard for dentists to remember that and to govern themselves based on that certainty.” (55:37—55:53) 

Snippets: 

- David’s background. (02:22—02:32) 

- The problem of embezzlement in dentistry. (02:57—04:34) 

- The “million-dollar club” and serial embezzlers. (05:09—05:59) 

- Best financial practices. (06:49—09:25) 

- The dynamics of trust. (10:23—13:28) 

- How embezzlement starts in a practice. (14:04—16:39) 

- What does outsourcing really mean? (17:03—19:19) 

- Do I tell staff about third-party bookkeeping? (19:45—20:56) 

- The best team members love accountability. (21:31—23:06) 

- Avoid hiring or keeping the wrong people. (23:57—25:48)

- Best practices with practice management software. (25:49—32:07) 

- Effects of COVID-19. (32:24—35:00) 

- Best practices around mail and email. (35:53—40:54) 

- Best practices with insurances. (41:08—48:07) 

- How proficient should dentists be with software? (48:21—51:41) 

- More on best financial practices. (52:12—55:56) 

- Damage of embezzlement beyond the money. (56:30—56:58) 

- David’s book and webinar. (57:43—58:26) 

Reach out to David: 

- Visit David’s company website, Prosperident https://www.prosperident.com/ - Contact Prosperident by phone: (888) 398-2327 

- Check out Prosperident’s “Hall of Shame” 

https://www.prosperident.com/prosperidents-hall-of-shame/ 

- Drop into David’s monthly webinar (Thursdays 8:00 EST): [link] 

Stay tuned for Kirk and David’s new podcast, TBA! 

Further reading: 

- David Harris, Dental Embezzlement: The Art of Theft and the Science of Control available on 

Amazon https://www.amazon.com/Dental-Embezzlement-Theft-Science-Control ebook/dp/B07YP2HCQ8 

Stay tuned for David’s new book, ETA summer 2021! 

- Quote attributed to President Ronald Reagan 

https://en.wikipedia.org/wiki/Trust,_but_verify 

https://www.rbth.com/lifestyle/330521-reagan-trust-but-verify-chernobyl