AuditMyBooks automatically analyzes small and medium business accounting records to detect errors and possible fraud.

Before AuditMyBooks, I spent 10+ years in the information security industry where defense in depth is a foundational concept.  A formal definition goes something like… “defense in depth is an information assurance strategy in which multiple layers of defense are placed throughout an information technology system.  It addresses security vulnerabilities in personnel, technology  and operations for the duration of the system’s life cycle.”  In plain English, it means don’t put all your eggs in one basket.

For example, maybe you’re one of those companies that spends thousands on security appliances every year, but doesn’t have a policy to disable user accounts when an employee leaves.  You might have the best firewalls in the world, but they won’t do anything to protect against a disgruntled, former employee who can still use his password to gain access to your critical systems.

I was reminded of defense in depth while reading one of my favorite blogs recently.  In this episode of Diary of a Bad, Bad Bookkeeper, the boss gives Betty Bookkeeper the signature stamp.  You can probably figure out how this story unfolds… be sure to visit the blog if you want the full details.  In the end, you’ll be reminded that “giving someone the keys to the kingdom” is a really bad idea.  When you’ve failed to safeguard an asset like your identity, it doesn’t matter how much your spending on your accounting system.  You are going to lose money.

Like a strong security system, an accounting system should include defense in depth to discourage fraud and reduce errors. For example, train your employees in fraud detection, and make it clear that integrity is expected. Put checks and balances in place, like separating check writing and signing. Develop an anonymous way for employees to report suspected fraud (3 times as many cases are caught by a tip than any other method.) And, make it a habit to periodically audit your QuickBooks data to identify problems.

Consider using a reporting or auditing tool to help you streamline the process, which means you’re more likely to do it regularly. Apps like AuditMyBooks can analyze your accounting transactions in QuickBooks to help you identify problems.

AuditMyBooks analyzes small and medium business accounting records to detect errors and possible fraud.  Working with small business experts who have years of experience as ProAdvisors, Certified Public Accountants, Chief Financial Officers and Certified Fraud Examiners, we’ve identified more than 100 tests to detect errors and fraud.  AuditMyBooks can be configured to meet the needs of all small businesses regardless of company size or industry. Unlike manual reviews of transaction logs which are time consuming, costly and rarely performed, AuditMyBooks automatically analyzes accounting records in a matter of minutes. You can use it daily, weekly, monthly … as often as you choose.

Interested in scanning your data?… check out our free trial today.

-CP Morey