woman who is completing a financial audit for her dentists client

Financial Compliance Audits for Dental Clinics

When you’re busy running a dental office, conducting in-house financial compliance audits might not be at the top of your to-do list. However, auditing your financial practices can be a major step toward avoiding an IRS audit or ending up in trouble with a governmental agency. 

The good news is that ensuring financial compliance at your dental clinic doesn’t have to be difficult. Once you have a system in place and your staff can use it, your chances of facing an external audit or other issues are slim. 

Why Every Dental Clinic Should Conduct Financial Compliance Audits

An in-house financial compliance audit is simply the process of going over your files and procedures and checking to make sure your records are complete and secure. Putting regular financial audits into practice at your dental clinic is a good idea for a variety of reasons. Some of the chief benefits include: 

  • Ensuring compliance requirements
  • Avoiding fines and other consequences of regulatory violations
  • Protecting sensitive patient data
  • Avoiding legal issues and lawsuits
  • Understanding your clinic’s financial status

On one hand, running a dental clinic means you’re legally obligated to comply with various regulations. Examples include HIPAA guidelines, IRS filing and reporting requirements, and concerns related to insurance claims, billing, and debt collection. 

On the other hand, a dental clinic is a business. To succeed, you need to clearly understand things like income, expenses, unnecessary expenditures, and missing funds. 

Conducting regular financial audits helps you address both concerns at once. Good auditing practices help protect your dental business’s economic sustainability, legal compliance, and reputation. 

How to Implement Financial Compliance Audits in Your Dental Practice

The best way to devise a fool-proof financial compliance audit system in your dental clinic is to consult a dental law attorney. Allowing a lawyer with experience in the dental field to review your practices and create a customized audit system is the best way to ensure you aren’t overlooking anything — or taking on unnecessary work. 

Conducting a comprehensive financial plan can seem overwhelming at first. Some of the essential areas you should review during the audit process include: 

  • Accurate patient records and billing
  • Billing and coding practices
  • Records of financial transactions
  • Income, expenses, inventory, and employee time records
  • Tax filing 
  • Policies around data security and employees 

A dental clinic deals directly with financial matters in a huge variety of ways. Taking patient payments, paying suppliers, and paying employees are just a few. However, many other practices at a dental clinic are tangentially related to these concerns. For example, you need to ensure you have solid patient record-keeping practices in place before you can make sure that your patients are being billed correctly. 

It can be difficult to set up a financial compliance audit system, especially while you’re also busy trying to run your practice every day. Many dental clinics prefer to hire a lawyer to set up a system for them. Then, you’re free to simply focus on training your employees on what they need to do to conduct an audit and ensure they do so regularly. 

Get Help From a Nationwide Dental Law Attorney Today

Mahan Law is a nationwide dental law firm. Unlike other firms, we focus specifically on legal representation in the dental field. That means our attorneys have the industry-specific knowledge that can help protect your dental clinic from the sort of regulatory violations, fines, and legal issues that are common in the dental field. 

Contact Mahan Law today to learn more about how our experienced dental law attorneys can help set up a financial audit system for your dental clinic.