2)  Security Settings

User access is a key feature of QB (and other accounting software) yet more often than not I find only the Admin has been setup and everyone logs in as that user. Sometimes it’s the result of confusion about QB single-user status.  Single-user means only one user can access the file at a time; however, unlimited user profiles can be created, with “permissions”.  QB uses “audit trail” to identify transactions created, modified and deleted by user. To use the tool, however, the owner, manager, bookkeeper, external accountant, and any other user should all have unique user logons with defined permissions, and passwords should never be shared.   In addition, user permissions help to restrict access to different activities.  For example, restrictions can be in place to prevent a user from changing or deleting a transaction or changing a transaction in a closed period.

3) Company File Preferences

Company file preferences also help to minimize errors and deter fraud. “Warn about duplicate invoice numbers”, “warn about duplicate Sales Order numbers” and “warn about duplicate check numbers”, should be activated in preferences.  A seemingly simple preference “Save transaction before printing” is set by default in new company setups.  By saving the transaction before printing, it becomes part of the audit trail and can be easily tracked if later deleted.  Without this preference, an employee could print an invoice or sales receipt and send it (or hand it) to a customer.  Since the transaction hasn’t been recorded, the employee can then pocket the money and the transaction is undetected.

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Next Blog post 11/19/2014