Telltale Signs You've Outgrown QuickBooks: The Risks of Insufficient Control and Weak Audit Trails

Telltale Signs You've Outgrown QuickBooks: The Risks of Insufficient Control and Weak Audit Trails

Have you noticed unexpected changes in your financial records? It might not be a software glitch; rather, it could be unauthorized manual entries. Many basic accounting systems, including QuickBooks, allow users to log in and edit data freely, without robust oversight or an audit trail. If you’re not vigilantly monitoring your data, these minor adjustments can escalate into significant issues—leading to inaccurate figures and distorted insights. Making decisions based on flawed data can steer your business in the wrong direction, increasing overall risk.

Growing Pain #1: Insufficient Financial Controls and Audit Trails

When alterations are made in QuickBooks, can you identify who made the change, when it occurred, or why? If the answer is 'no,' your business could be vulnerable. It's crucial to have insight into who is making decisions on your behalf, and lacking this information hinders your ability to maintain proper controls. Without visibility into decisions and data integrity, trusting your financial reports becomes challenging. You know it’s time to move beyond QuickBooks when you can no longer rely on your data or provide a comprehensive financial audit trail.

The good news is that protecting your data and establishing the right controls is straightforward with Microsoft business solutions. You can restrict access to sensitive information—like proprietary data or customer credit card details—to only those who need it. Furthermore, you can tailor user access to specific software features relevant to their roles, while keeping other data and functionalities secure.

With electronic audit features in Microsoft solutions, you can track and control data changes effectively. Implementing approval forms for specific data modifications and setting up alerts to notify managers of changes ensures data integrity is maintained. Keeping records of all data alterations not only protects integrity but also ensures compliance and minimizes the risk of human error.

Karen Comerford, Controller at the Ballet Center for the Performing Arts, shares, “By using Microsoft Dynamics Business Central, we have all the insights and reporting tools we need to collaborate effectively with external organizations and transparently communicate our financial status. We’ve streamlined the production of monthly, quarterly, and annual reports. Plus, the security features of our hosted Microsoft solutions are outstanding. We can easily implement controls so that only authorized personnel can modify certain records, ensuring confidential patron and donor information, like credit card numbers, remains secure.”

Take control and safeguard your data with Microsoft Business Central solutions. Discover how Microsoft can revolutionize your operations.

Join us next week as we delve into the next challenge: why your business can't progress while you’re stuck looking back. In the meantime, consider exploring these cloud or Azure solutions tailored for small and mid-sized businesses—it’s easier and more affordable than you might think!