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Is Your Employee Stealing From You?


Ever wonder why you cannot find a transaction in QuickBooks?  Or worse yet, that feeling that you KNOW it was different than what you are looking at.  As a business owner, this is a very frightening feeling.

Inside QuickBooks is a very handy report called the Audit Trail Report that can be used to answer the questions “what happened?” and “who changed this”?  This report provides a digital fingerprint of everything that happens within your QuickBooks file.

You can use it to track each users entries, modified transactions, voided transactions, and deleted transactions. The QuickBooks audit trail is on by default in all versions 2006 and older. Prior to that, it had to be turned on manually.

To access the audit trail report, click Reports > Accountant and Taxes > Audit Trail report. By default, the report only shows the activity for today. You can easily change that by changing the date range as needed in the upper left hand corner of the report.

Important note – the audit trail is only capturing information about new, deleted, modified and voided transactions. It does not keep track of changes made to the various lists within QuickBooks (i.e. customer list or item list).

Why do you want to use this as a small business owner? First it is a great way to see if your bookkeeper is properly using QuickBooks, or worse yet, if they are using it to hide things.  The second reason is as a control tool.  The owner can quickly scan the list of users and transactions processed to ensure that they are only accessing what have been authorized to. This is a key component of proper internal controls, and the audit trail can provide this information quickly and easily.

As you can see, this audit trail report is quite powerful and a great internal control tool to keep their accounting records in good order.

Adopted From July 13, 2010 Scott Gregory QuickBooks Expert

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