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Segregation of Duties

One of my current clients is in the process of changing their bookkeeping processes. They currently have one person doing all of the data entry into QuickBooks, and have one of the owners review the checks before mailing. This is not the ideal setup, but it was working for them while they were a small company. Now, the bookkeeper is retiring and they need to bring someone new in, and have some concerns about fraud and theft.

It is important to ensure that people who have access to and are responsible for your financial information have defined roles and have access to only areas that they need. QuickBooks Enterprise Solutions allows you to setup detailed roles for each of your users to limit what they can and cannot do. Along with these roles, however, separation of duties is key to help reduce theft and fraud.

Some of the simplest segregation is ensuring that the person who enters bills is not the same person who actually pays them. A common way to steal from a company is to either create fake vendors, or use family members as vendors and create fake bills/payments. Having one person who enters bills and one person who pays bills limits the possibility of this happening. All payments should also be reviewed by the business owner or someone who is familiar with the business. Question any unusual payments or new bills immediately.

Implementing a ‘checks and balance’ system is the first step to protecting your company from fraud, as well as ensuring accurate financial information.

About Travis Trudeau

Travis has been a Consultant with Presti & Naegele since October 2007. He has worked with companies in a variety of industries, specializing in QuickBooks Point of Sale. An Advanced Certified QuickBooks ProAdvisor since 2008, he also has extensive knowledge of QuickBooks Financial software and third party integration solutions. Travis is an expert in QuickBooks SDK and creates various custom applications for his clients. Prior to working at Presti & Naegele, he worked for Intuit as a Technical Support Representative and was part of the advanced support team.In his spare time he does computer programming and is currently learning to develop for Appleā€™s iPhone and iPad devices.
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