Learning How to Protect Your Finances within QuickBooks!
Although it might be hard to believe, many cases of “Financial Fraud” come from within one’s own organization. Therefore it is quite important to learn how to protect your finances not just from the outside, but from the inside as well!
A recent QuickBooks blog by GrowthForce gives us four tips on how to use QuickBooks’ Tools to manage the internal security of our finances:
Use Your Audit Trail
“An audit trail is a very large report that displays every addition, deletion and modification of every transaction. In older versions of QuickBooks, you could turn it on and off, but it’s permanently on now. “ For this reason you will need to modify, filter, and customize the report to track specific needs. “The audit trail will not alert you when someone tries to enter a prohibited area, and it won’t detect changes to lists,” but it will give you a detail list of changes/deletions made for review.
*NOTE: Not only for auditing but this useful for when you delete by mistake.
This article provides more information on audit trail application:
Set up Permissions to restrict user access
By giving employees their only log-in and password you can set-up restrictions. To learn more about how to set up restrictions click on the link below.
Review Your Reports Daily
– As mentioned previously review the deleted/voided transactions using Audit Trail
– Review the cash balances on the Balance Sheet by changing to a specific date in question
– Review frequent vendor payments on the Vendor Detail report
*NOTE: The key is to review reports on a frequent and regular basis so you know what seems different or out of the ordinary.
“Adhere to Best Practices”
– You should password-protect your QuickBooks company file and change the password regularly.
– Set up separation of duties among your employees. The following article from TSCPA provides a helpful chart for separation of duties in small companies.
“Reinforce the Rules”
“Know who your employees are.” “Rotate the duties assigned to accounting staff. If you have only one person managing all of your bookkeeping work, conduct an even more thorough background search: credit, references, criminal activity, etc.”
“Finally, make sure that all employees understand the definition and consequences of fraud. Let them know about the steps being taken to prevent it, but do some unannounced auditing on your own. Include a session on fraud in orientation and get current staff up to speed. Explain that this is necessary for their protection, too. Make it easy to report fraud anonymously, without fear of repercussions.”
To see the full article by GrowthForce click Here. Information presented here is from GrowthForce to whom belongs all credit and recognition aforesaid.