You never want to delegate ultimate authority and control over the cash flow of your practice. Renowned business author and speaker Dan Kennedy has repeatedly warned business owners against “delegating the checkbook.” I was reminded of this by a story today in the Houston Chronicle (link here) about a long time employee who embezzled $6 million dollars from her employer. The story explains:
“Paying for a jet-setting luxury lifestyle — including tabs of $250,000 at Neiman Marcus and more than $100,000 at Kuhl-Linscomb for furniture — is how a trusted accounting clerk spent nearly $6 million she allegedly stole from her Houston employer, possibly costing many of her colleagues their jobs, prosecutors said.”
The business she stole from was not a fortune 500 company, it was just a small privately owned business that made the mistake of assuming that a single employee could be trusted to honestly handle the money without close supervision. . Big mistake.
If you want your practice to be a lucrative one - one that will provide your family with a nice lifestyle, college educations for your kids, and a nice retirement for you and your spouse – you cannot afford to take this kind of risk.