When Gerry Pandaleon asked me this question recently, I rattled off a list of tools in QuickBooks (QB).  As I thought about the number of implementations and troubleshooting activities I’ve taken on over the years, there were few business owners who asked the same question.  Business owners who work hard to build a business rarely consider that a trusted employee would steal from them.  Even without fraud as a motive, there have been even fewer who ask how to verify the bookkeeper’s work.

There are numerous reports in QB for reviewing work product and catching errors that might be identified as fraud.  But let’s begin with prevention.

1)  Regardless of what accounting software used, and whenever possible, fiscal duties should be segregated.  Mail should be opened and logged by someone who is not working in the QB file.  The bookkeeper should not be signing checks.  Having an approved vendor list – approved by the owner or manager – is another precaution.  These, and other internal controls, are essential deterrents to fraud.

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Next blog post 11/12/2014