For Debra Oselett, an experienced medical practice administrator in Rochester Hills, Michigan, and other successful office managers, inventory control, especially the internal variety, is essential to running a profitable and prominent medical practice. A medical office’s investment in inventory is significant, and as such, it must be monitored, managed, and protected at all times.
There are a few key steps that the medical practice administrator takes in the inventory control process. First, the administrator must make sure the area holding the inventory is secured properly, whether the inventory is physical or digital in nature. Inventory must be organized, counted, and inspected thoroughly to avoid future discrepancies and issues with the products in question. Of utmost importance involving physical inventory is the need for it to be correctly identified and tagged.
Administrators should also keep accurate records of inventory that has left the office. Accurate inventory is vital. There are a number of different tools and software that can aid with inventory calculating. These applications and programs help store the inventory data safely, and organize it to make the data easy to find and access. Standardized record keeping will help the administrator record what merchandise has been used or purchased and is no longer present in the facility. All inventory that leaves the office should be signed for, and a record of responsibility established for the removal of that product. For the construction of any inventory product, the administrator must produce a bill of materials. Keeping regular audits of any bills of material is necessary, and any access to the bills of material records should be kept safe via password-only access in the office’s computer system.
Smart medical practice administrators will also conduct regular inventory reviews, especially to identify and remove obsolete inventory. This type of inventory can cost a medical practice significant money for storage that could be better used for inventory that is being moved more frequently. Prudent office administrators will also engage their staff in helping to keep inventory records clear and accurate. For obsolete inventory, a medical administrator may choose to create a materials review board from her staff to regularly look through inventory records for any anomalies or errors, and to determine what products should be kept or sold off entirely. The office staff can also assist in smaller, more frequent counts of inventory stock, and call attention to any discrepancies they may find. The inventory accuracy will be, with time, greatly improved by these staff-oriented methods.
Skilled, qualified medical practice administrators, like Debra Oselett, are careful to make sure that the practice’s inventory records are accurate. The medical administrator needs to be thorough, investigatory, and willing to engage staff in developing an inventory records process that will be to the benefit of the office.
Source: http://www.accountingtools.com/inventory-internal-controls
