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The person paying the bills should never reconcile the bank statement. There are three tasks related to your finances that need to remain separate: Authorization – The person who approves the vendor bill or sends a customer invoice. Custody of related assets – The person who reconciles the bank statement or credits/edits the invoice.
On the fiscal side, I create a detailed annual budget, send out monthly income/spending/asset reports, pay bills and payroll (each household member has a personal bank account separate from the household accounts and gets a weekly allowance), and approve large expenses. I negotiate with banks for fee reimbursement and lower APRs.
But the structures we have—the system of caregiving, the enormous importance of finance in caregiving, the idea that patients are profit centers—undermine care. I organized a report by the World Bank in 2016 called “Out of the Shadows” about mental health. The system of healthcare today in America is toxic to good care.
I supervise the day-to-day tasks of and serve as a resource for a coworker, but we share a boss. They plan to get married when they are done with school and he has a background in accounting and finance with experience working for a bank. It’s five answers to five questions. Here we go….
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