5 Accounting Controls for QuickBooks From QuickBooks 2014 All-in-One For Dummies

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5 powerful techniques for minimizing the problems that crop up when you've got people with varying levels of skill and trustworthiness working with your QuickBooks data:

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1. Regularly compare physicalinventory counts with inventory accounting records.

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1. Regularly compare physicalinventory counts with inventoryaccounting records.Frequently counting the most valuable and easiest-to-steal items accomplishes two things:

1. Inventory shrinkage is quickly identi�ed.

2. The business owner can minimize inventoryshrinkage by identifying the type of inventorythat's most often stolen or even when inventoryis most often stolen.

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2. Reconcile Bank Accounts

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Employee theft by accounting personnel occurs as employees �gure out how to write checks on the company's bank account that the owner doesn't see.

One sure way to �nd a �ctitious and fraudulent transaction is to have the owner reconcile the bank statement.

Any �aky, suspicious transactions tend to become obvious when the business owner looks closely at checks.

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2. Reconcile Bank Accounts

3. Segregate accounting fromphysical custody where possible

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In a small business, it's not always easy to separate the accounting for some activity from the physical custody or physical responsibility for that activity.

Wherever you can segregate physical custody from accounting, built-in error checking occurs.

3. Segregate accounting fromphysical custody where possible

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4. Train employees in theuse of QuickBooks

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Train employees to use QuickBooks if you have a business of any size, for two basic reasons:

1. Someone who knows how to use QuickBooks isless likely to make inadvertent errors

2. Messy accounting records camou�age employee theft.

4. Train employees in theuse of QuickBooks

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5. Close your QuickBooks f ile

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5. Close your QuickBooks f ileClosing the �scal year in QuickBooks is notrequired but is still a good idea to maintainthe integrity of your data.

Once you close your �scal year, Quickbooksprohibits or limits users from changing orentering transactions dated before the closingdate.

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5. Close your QuickBooks f ileHow to close your �scal year:

When QuickBooks prompts you, specify a closing date and password.

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Choose the Edit/Preferences command, select Accounting, select the Company Preferences tab, and then click the Closing Date Set Date/Password button.

QuickBooks 2014 All-in-One For Dummies by Stephen L. Nelson and published by Wiley.

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