In the busy day-to-day operations of a dental or healthcare practice, it's easy to overlook the seemingly small administrative habits that can have a big financial impact. One of the most common—and costly—mistakes we see is a disconnect between what's entered into the Practice Management System (PMS) and what actually ends up in the bank. This mismatch can lead to inaccurate reporting, missed revenue, and even open the door to fraud.

Swap of Tenders: A Small Error With Big Consequences

Every time a front desk administrator inputs a payment, there's an opportunity for error—especially with payment types. For example, if a patient pays by debit but it’s mistakenly entered as Visa, this “swap of tenders” may go unnoticed in the moment. But over time, these discrepancies create reporting confusion and complicate reconciliation, sometimes leaving money unaccounted for.

When the PMS says money came in, but there's no matching deposit in the bank—or it’s recorded incorrectly—it signals a problem. These mismatches not only affect accuracy but also raise concerns about mismanagement or even internal fraud.

Typos Matter More Than You Think

Simple errors—like recording $0.25 instead of $0.52—may seem trivial but can wreak havoc on your books. A few cents off here and there add up, and they can make month-end reconciliation far more difficult than it needs to be. Worse, they may not be caught until it’s too late, especially if you’re not doing routine checks.

The Importance of a Proper Day-End

One of the most effective ways to catch errors is to build a culture of daily reconciliation. Your team should be:

• Verifying that what’s entered in the PMS reflects actual payments received.
• Ensuring the correct payment method is recorded (cash, debit, Visa, insurance EFT, etc.).
• Cross-referencing PMS entries with POS data or manual tracking.

These small daily habits create accountability and prevent problems from snowballing into bigger issues.

Make Deposits Weekly—No Exceptions

Cash and cheque deposits should be made at least weekly. Cash received for services rendered should never be used for business purchases or held for extended periods. Not only does this make it harder to reconcile accounts, but it also opens the door to theft, mishandling, or reporting inconsistencies.

Delaying deposits creates unnecessary exposure and makes it harder to tie the money back to services rendered. For clean, reliable records and peace of mind, be consistent with timely deposits.

Increased Risks: Loss, Misplacement, and Fraud

When clinics delay deposits or fail to verify that PMS entries match bank records, the financial risks grow significantly. Here's why:

• Loss: Physical cash or cheques stored in drawers, folders, or envelopes can easily be lost or accidentally discarded. Without timely deposits, it's difficult to trace what happened or when the funds went missing.

• Misplacement: When deposits aren't made regularly or tracked accurately, payments can be forgotten altogether—especially if a team member is away or leaves unexpectedly. Reconstructing what happened after the fact can be nearly impossible without daily tracking.

• Fraud: Delayed deposits and weak oversight can unintentionally create opportunities for theft. If no one is checking that what’s entered in the PMS is actually going into the bank, it's easier for a dishonest employee to exploit the system. Even in well-meaning teams, the lack of checks and balances can result in errors going unnoticed, creating the appearance of impropriety or internal control weaknesses.

Staying on top of reconciliation isn't just good practice—it’s a key safeguard against both innocent mistakes and serious financial risk.

For Example…

Imagine a clinic where the front desk team is short-staffed and behind on daily reconciliation. Over the course of a month, they receive multiple cash and cheque payments but delay making deposits due to time constraints. Payments are logged into the PMS, but no one checks the bank to confirm that the funds were actually deposited. Some payments are mistakenly entered under the wrong type—Visa instead of debit, or cash instead of cheque.

At month-end, the clinic discovers a $9,000 discrepancy between what the PMS reports as collected and what was actually received in the bank. Because the errors weren’t caught daily, correcting them now requires hours of manual review—and in some cases, the missing funds may never be recovered.

Check the Bank Statements, Too

When bank statements arrive, they should always be reviewed against your PMS entries. This is your opportunity to confirm that what was supposed to go into the bank actually did. Any differences should be investigated immediately.

Protecting Your Revenue Starts With Daily Habits

Practices don’t fall short financially because of one big mistake. It’s usually a series of small missteps—improper entries, overlooked typos, late deposits, unchecked reports. When those add up, they compromise your ability to trust your data, manage your cash flow, and run your practice with clarity.

If you’re unsure whether these daily habits are being followed consistently, or if you need help tightening up your process, we can help. Our team is experienced in supporting clinics with monthly comprehensive collections—ensuring everything entered into your PMS is traceable, accurate, and properly reconciled with the bank.

Let’s make sure your numbers reflect your hard work.