Quickbooks for Small Business: How to Secure Your Account

Managing finances is often one of the trickiest parts of running a small business. Accounting requires precision and secure handling of sensitive financial details, both for your business and any employees. Given the strict standards in financial reporting, using dependable accounting software can make a big difference for small business owners.

QuickBooks is a widely used accounting software, especially popular among small businesses in the United States, and part of the same company that owns Mailchimp.

Related: Is Mailchimp Safe for Your Business? How to Get Started and Protect Your Data

What is QuickBooks?

QuickBooks helps business owners to manage their finances effectively, offering a variety of features to help with tasks like invoicing, payroll, tracking expenses, and tax management. Designed to be user-friendly, QuickBooks simplifies bookkeeping, making it a great choice even for those without an accounting background.

It works well with other software tools, such as Microsoft Excel, which makes organizing data and preparing taxes easier. Additionally, QuickBooks has cloud functionality, meaning users can access their financial information from almost any device. This setup allows for greater flexibility, making it possible to handle finances on the go, collaborate with team members from different locations, and connect with tax-related apps as needed.

Here are some specific ways QuickBooks can benefit small businesses:

1. Generating Reports
2. Creating Cash Flow Statements
3. Analyzing Financial Trends
4. Organizing and Managing Data

QuickBooks Overview and Setup

QuickBooks offers two main versions: QuickBooks Online, accessible through browsers or an app, and QuickBooks Desktop, installed directly on your computer. 

Once you've created your QuickBooks account, you'll want to configure your preferences and company settings to suit your business.

1.      Choose Your View: Use the "business view" if you have minimal accounting experience or the "accounting view" if you have more experience.

2. Customize Your Dashboard: Adjust and resize displayed charts and graphs to fit your personal preferences and priorities.
3. Integrate Third-Party Apps: If you use external apps like Etsy or PayPal, connect them to QuickBooks to get a full overview of your finances in one place.

After initial setup, create a new company file by entering your business details, such as:

• Business address (important for state tax information)
• Business phone number
• Company logo
• Relevant tax information
• Industry type

Then, link your bank accounts and credit cards to streamline transactions.

How Your Bank Connection Works with QuickBooks

When you link your bank account to QuickBooks, the software securely pulls in your recent transactions automatically. Once connected, QuickBooks continues to update your transactions regularly, ensuring that your records stay current.

To establish this connection, QuickBooks requires your online banking credentials (username and password). This creates a one-way, "read-only" connection, meaning QuickBooks can view transaction data but cannot make changes, process payments, or access personal details within your transactions. Information flows only from your bank to your QuickBooks account, adding an extra layer of security.

Related: 7 Types of Credit Card Fraud & How Your Businesses Can Avoid Them

Potential Risks When Using QuickBooks

QuickBooks is designed with security in mind, but it's essential to be aware of certain risks that can affect the safety of your financial data. Understanding these risks can help you take the necessary steps to protect your information effectively:

·       Cyber Threats to Financial Data: Financial information is a prime target for cybercriminals. Without the right security measures, your QuickBooks account could be vulnerable to data breaches, allowing hackers to access sensitive business details.

·       Unauthorized Access: Using weak or repeated passwords can make it easier for unauthorized users to access your account. This can put your financial information at risk, as attackers may gain full access to your business's data.

·       Financial Fraud: If your QuickBooks account isn't well-protected, unauthorized users could alter financial data, initiate fraudulent transactions, or manipulate records, putting your business at financial risk.

·       Third-Party Integrations: Many users connect QuickBooks with other applications to streamline operations. However, connecting to third-party apps without proper security settings can open up your data to external threats, especially if the apps don't meet high-security standards.

Related: How to Check If Your Business Is Affected by a Breach (And What to Do if It Is)

The QuickBooks App: Convenient but Risky

Using the QuickBooks app allows business owners to manage their finances from virtually anywhere, offering great convenience for those on the go. However, it's important to be aware of certain risks that come with mobile access:

• Device Theft: If your phone or tablet gets stolen and you're logged into the QuickBooks app, your financial data could be exposed.
• Unsecure Wi-Fi Connections: Logging into QuickBooks on public or unprotected Wi-Fi networks can make your data vulnerable to interception.
• Unauthorized Users: Without securing your device, anyone who picks it up could access your QuickBooks app and potentially your financial data

How to Secure Your QuickBooks Account

1.      Create a Strong, Unique Password, Enable Two-Factor Authentication (2FA), and Add a Method to Verify Your Account

• Choose a strong password that includes uppercase and lowercase letters, numbers, and symbols. Avoid easy-to-guess words or personal information like names or birthdays. To keep track of complex passwords, consider using a password manager.
• Enable Two-Factor Authentication (2FA): Two-factor authentication (2FA) adds an extra layer of security by requiring a code sent to your phone or email. To enable this, go to your QuickBooks account settings and look for the security section to turn on 2FA.
• Set up a verification method to prevent lockout.

In the Sign-in & Security section of your Intuit Account settings, you can choose several verification methods to simplify account access and avoid lockouts:

• User ID: Personalize your User ID for easy recall.
• Email: Ensure your email is current to help verify your account when needed.
• Phone: Use your phone number as an added verification method.
• Password: Opt for a longer, more complex password or phrase for greater security.
• Authenticator App: Set up an authenticator app to receive one-time passcodes, offering an alternative to text-based verification.

2.      Limit Access with User Permissions

Restricting access based on roles ensures that only authorized individuals can view or modify financial data.

• How to: QuickBooks allows you to create different access levels for users. In the Manage Users section, you can assign roles tailored to each user's needs.

a.      Set Up Restricted Roles:

1. Log in as the QuickBooks admin.
2. Go to Company > Users and select Set up Users and Roles.
3. In the Role List tab, choose New or Edit to define a role.
4. Customize permissions by selecting access levels (view, modify, delete, etc.) for customer, employee, or vendor data.
5. Save the role and assign it to users as necessary.

b.      Assign a Restricted Role to a User

By setting specific user roles, you can limit access to only what each user needs. This means a user will only be able to view and create entries for their assigned customer or vendor group and see reports relevant to their role.

To assign a restricted role:

1. Go to the Company menu, select Users, and choose Set Up Users and Roles.
2. In the Users tab, click New to add a user or Edit for an existing user.
3. Enter the User Name and Password.
4. From the Available Roles list, select the appropriate role for the user, then click Add.
5. Once done, select OK to save.

c.       Add an Accountant Users in QuickBooks Online

Giving your accountant access to QuickBooks Online lets them review your financials, make adjustments, and assist with tax preparation. Accountants have unique privileges, including the ability to undo reconciliations, reclassify transactions, and write off invoices, plus they have access to specialized tools for managing finances.

To Invite Your Accountant:

1. Sign in to QuickBooks Online as the primary admin.
2. Go to Settings and choose Manage Users.
3. Select the Accountants tab.
4. If this is the first accountant you're inviting, enter their email address and click Invite. Follow the prompt to verify your account.
5. For additional accountants, select Invite, enter their name and email, and then click Save.

Your accountant will receive an email invitation and a link to access your QuickBooks Online company. If they already have a QuickBooks Online Accountant account, they can log in immediately. Otherwise, they can sign up for free to access the tools in your version of QuickBooks Online.

To Remove an Accountant: If you need to revoke access for an accountant:

1. Sign in to QuickBooks Online as the primary admin.
2. Go to Settings and select Manage Users.
3. In the Accountants tab, locate the accountant to be removed.
4. In the Action column, select Delete.
5. Confirm by clicking Delete again.

Related: What Are Invoice Scams and How Small Business Can Stay Safe

3.     Be Careful with Third-Party App Connections

Many third-party apps request access to your QuickBooks data, but not all are trustworthy.

How to: Only connect apps you trust. In your QuickBooks account, review the list of connected apps under Settings > Apps and remove any apps you no longer use. Check each app's permissions to make sure they're only accessing the data they need.

4.Log Out When Not in Use

Staying logged in, especially on shared devices, can put your account at risk.

How to: Always log out of your QuickBooks account when you're done, especially on mobile devices. In the Settings menu, you can also set QuickBooks to log out automatically after a certain period.

5.     Update Software Regularly

Updates often include security patches that fix known vulnerabilities.

How to: Make sure your QuickBooks software is set to update automatically or check for updates regularly. This applies to both the QuickBooks app and any device software, as outdated operating systems can also be a risk.

6.Monitor and Respond to Suspicious Activity

Monitoring your QuickBooks account regularly helps you catch unusual activities early. How to:

• Set Up Alerts: QuickBooks can notify you of significant activities, such as changes to your account or logins from unfamiliar devices. Set up these alerts under Settings to stay informed.
• Review Transactions Regularly: Go over recent transactions weekly to spot any discrepancies or suspicious entries, allowing you to take immediate action if something appears wrong.

7. Use a VPN and Antivirus Protection

• VPN: When accessing QuickBooks remotely, use a Virtual Private Network (VPN) to secure your connection, especially over public Wi-Fi.
• Virus Protection and Firewalls: Ensure that any device accessing QuickBooks has up-to-date antivirus protection and a firewall to block malicious access attempts.

How to: The easiest way is to secure all the devices you use for work with Bitdefender Ultimate Small Business Security.

You will have exceptional protection against all digital threats for your business and employees.

Email Protection. Scans and blocks phishing emails, suspicious links, and fake invoices and prevents employees from accidentally clicking on malicious links.

Scam Detection. Scam Copilot monitors emails, texts, and chats for fraud. It alerts you and your employees when a scam attempt is detected, providing real-time guidance on how to handle it.

Password Management. Password Manager automatically generates strong, complex passwords that meet security best practices.

Secured Remote Work. The VPN protects your team from unsafe public Wi-Fi networks (like those in coffee shops or airports). Ensures all communication between remote employees and your business systems is fully secure.

Device Protection: Detects and blocks malware in real time, including viruses, ransomware, and spyware on all laptops and smartphones.

Monitoring of Your Business's Digital Identity. Monitors your business's online presence for potential data leaks, unauthorized use of your business name, and exposure of sensitive information, even on the dark web, alerting you to any breaches.

Check out the plans here.

FAQs

Can I use QuickBooks for a small business?

QuickBooks is a great option for small businesses. It provides essential tools for accounting, payroll, invoicing, and expense management, making it especially useful for business owners without a formal accounting background. Its straightforward interface and comprehensive features make QuickBooks a popular choice among small business owners.

Can I use QuickBooks if I am self-employed?

QuickBooks has a version tailored just for self-employed individuals called QuickBooks Self-Employed. It allows you to easily track income and expenses, organize receipts, estimate quarterly taxes, and much more. This version is perfect for freelancers, contractors, and independent professionals who want a straightforward way to manage their finances.

Is QuickBooks safe to use?

QuickBooks includes strong security measures to protect your data, features like two-factor authentication, encryption, and secure password options. Intuit, the company behind QuickBooks, follows industry-standard security protocols to keep user information private and protected. However, for full protection, secure the devices you use for QuickBooks with Bitdefender Ultimate Small Business Security.

How secure is QuickBooks for storing financial information?

QuickBooks is designed to securely store financial data. It uses advanced encryption, similar to what's used by leading financial institutions, to safeguard data during transmission. The platform also relies on firewall-protected servers and offers additional security features like access controls and regular updates to protect your information from unauthorized access.