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Financial Record Security

You might think that your small organization is not a target for malicious hackers. But, a survey by the Small Business Technology Institute reported that more than half of all small businesses in the U.S. experienced a security breach in the past year. Here are the steps you should take to provide basic security for your financial records.

  1. Protect Your Systems—Equip all PCs and servers with a) an un-interruptible power supply to prevent corruption of data, b) virus detection software, adware/spyware detection and removal tools, and c) a firewall on all computers that connect to the Internet.
  2. Create Backups—Make regular backup copies of all your important data. Store a copy away from your office.
  3. Use Effective Passwords—Encourage non-obvious passwords and change them every three months. Use password protection for folders and files containing accounting information.
  4. Keep Software Up To Date—Without updates, your anti-virus, anti-spyware and firewall software will not protect you against new cyber threats.
  5. Lock Your Records—Lock file cabinets and access to computers that contain financial information. Block all unauthorized access to the QuickBooks data file.
  6. Be Prepared For Emergencies—Create a contingency plan for your organization so you can recover if you experience an emergency. Test your plan annually.
  7. Use A Payroll Service—Use a payroll service and keep employee names and detailed payroll information separate from the accounting system.
  8. Audit Trail—Make sure that your accounting software’s audit trail is turned on, allowing unauthorized changes in data to be investigated.
  9. Computer Checks—Generate bill payment checks directly from the accounting system to reduce the risk of check alteration and duplicate bill payment.
  10.  Educate Your Staff About Security—Develop a “culture of security” in your employees and in your business. You might think that your small organization is not a target for malicious hackers.