16 Nov Using Passwords Effectively
One of the easiest ways to improve internal controls for businesses using QuickBooks is to set up each individual who will have access to the data with a unique user name and password.
The ability to change entries after they have been recorded is a benefit of the software for the end user and a potential curse for the accounting professional. This issue is compounded for the accountant because there are no formal month (or year-end) closing procedures that must be followed. This is a double edged sword because it means that the data can be quickly and easily corrected when mistakes happen, but it can also be easily changed after the books have been reconciled, financial statements issued, and/or the tax returns have been filed. The password protection feature and related closing date helps to reduce the likelihood of such problems when used consistently. In addition, the 2002 version of QuickBooks Premier also has several new reports to assist in finding such changes.