Sadly, a number of stories have been in the news about businesses being scammed by their bookkeepers through their misuse of QuickBooks and other accounting software (and other devious tactics).
Given that, I think it is a great time to review two of the key reports QuickBooks provides to help business owners and managers stay on top of their information:
- The Audit Trail report - a comprehensive way to see all the transactions in QuickBooks for a day, week, month or other time period. This report tells you what the original transaction looked like, how it might have been changed, if it was deleted, and who did what with it. One of the biggest scams I have read is where the check is issued to one vendor to pay personal bills, but then the check is modified with the name of a regular vendor so that nobody would know what happened based on a casual review of the check register.
- The Voided/Deleted transactions report - this report focuses just on those transactions that are either completely voided or deleted from QuickBooks. It is always a good idea to have insights into why these types of transactions may be occuring in your books.
Unfortunately, none of the versions of QuickBooks have the ability to track who makes changes to list entries (i.e. customers, vendors, or inventory), but the reports above can sure help provide insight into all the transactions that are being recorded in QuickBooks.
Naturally, these two reports are just part of a system of internal controls your business should have in place to minimize the possibilities of fraud and/or other scams from costing you a lot of money.
WANT TO SEE REAL EXAMPLES OF SCAMS IN MOTION?
These may help increase your interest in knowing more about your QuickBooks:
- Bookkeeper arrested on theft charges for second time in two years
- Bookkeeper arrested for theft
- Bookkeeper arrested on grand theft and embezzlement charges
You get the idea...