Best Practices for Securing QuickBooks Data

Quickbooks is a cloud-based accounting program that stores your financial information on the cloud rather than locally on your devices. 

Businesses can access and manage income tracking, invoices, expenses, financial reports, inventory, and more across the globe. 

With cloud accounting, you can easily and conveniently keep your books online, giving you flexibility and accessibility. 

However, the software that handles sensitive client financial information is a common target for hackers and malware. 

So, it is wrong to say, that cloud accounting software like Quickbooks is 100% safe. But a few actions from the users’ end will protect your data and shield you from losses in the future. 

Let’s explore some security measures you can take to protect your QuickBooks financial information and prevent fraud.

 QuickBooks Online security measures ensure the safety of your financial transactions

1. Strong Password Management

Don’t let anyone access your Quickbooks with just a simple tab. Take your first step and put this thing into your habit that whenever you access QuickBooks, log in with the password. To access QuickBooks online through a password, you are not required to use your name or any other simple password that could be guessed by a hacker.

Do’s to Create Quickbooks Password

The minimum requirements for complex QB passwords include:

Note: Make sure your password is alphanumeric (A combination of alphabets, numbers, and special characters)

• At least 8 characters (the length of the password should be 8-16  )
• At least 1 number (0-9)
• At least 1 uppercase letter (A-Z)
• At least 1 lowercase letter (a-z)
• At least 1 special character (For example- ! @ # $@ % ^ & * ( ) _ + = – [ ] { } \ | ‘ “ ; : ? / . > <)
• Make sure that every 90 days, passwords must be changed. 
• Enable two-factor authentication.
• Update your phone number and email ID from a recovery perspective.

Don’ts to Create Quickbooks Password

Avoid using easily guessable information like birthdays, pet names, or DOBs. 

2. Regular Software Updates

Developers work on applications constantly to maintain software functionality and credibility, preventing users’ tasks from being delayed. So, keep a keen eye on the software updates before your tasks get stuck because of outdated Quickbook apps. 

The purpose of QBO system updates is to ensure the software remains functional and up-to-date. These additions are essential and have been made to satisfy most users’ needs to maximize the efficiency of their financial task management.

3. Secure Network Connection

Make sure that whenever you use QBO online, you use a secure network connection. Try to avoid using public Wi-Fi networks to access your sensitive financial tasks, especially when you are a virtual accountant or managing clients’ tasks. 

Remember to use a virtual private network (VPN) to encrypt your data if your company offers offshore accounting services and prevent it from being wiretapped.

4. User Access Controls and Account Activity Alerts

Restrict your Quickbooks online access by allocating roles and permissions based on job roles. Recall that not all users needed to have access to all of QuickBooks’ features. Check and update users’ access frequently to ensure that employees can access only the required features that are assigned to their roles. 

5. Data Encryption – QuickBooks Online encrypts

QBO protects your financial information while it is in transit and at rest by using encryption. Also, Quickbooks has taken security seriously, implementing firewall protection, password-protected logins, and the same 128-bit SSL encryption technology used by the biggest banks in the world.

6. Regular Data Backups

Take frequent backups of your financial data, especially if you are working for a client. This backup will prevent you from further major issues like data breaches, system crashes, software license expiration, and many more. It is advisable to apply an automatic backup feature to your Quickbooks software so that, your financial data will remain only yours. It doesn’t matter what the situation was or will be. 

7. Upgrade Your Quickbooks as You Grow

Don’t be Ebenezer Scrooge when your team grows. It happens very often when your business expands and you want to accommodate your team within the same price range. 

And you are searching for an alternative, sharing computer screens, and using its cracked version (though this is extremely unlikely). It would be better to add more storage space, users, and advanced features based on your business needs rather than cramming in all of this stuff.

8. Employee Training

It is good to keep up with your employees on the latest scams, data breaches, and rule violations, and what remedies they have if they get stuck on any kind of issue. Train them on how to spot potential security threats, shady attachments, and phishing emails. Hire a good team of law experts, which works as a first line of defense against any cyber threats.

Worth exploring:- Hire Your QuickBooks Virtual Assistant with Invedus

9. Vendor Security

If you are mulling to integrate Quickbooks with third-party applications, make sure, that the organization takes data security matters very seriously. Check this again by reading reviews on various platforms, going to their websites to see how they operate, looking at their digital presence and performance, and preferably using a variety of communication channels to help analyze their work habits, punctuality, communication style, and level of enthusiasm.

10. Use Multi-Factor Authentication to Access QuickBooks

Don’t just consider Quickbooks to be accounting software; it is much more than that. You can consider QuickBooks like your bank wallet. As long as you have a secure password for your bank wallet, use it in the same manner for your Quickbooks as well.

To make QBO Online more secure, try multi-factor authentication. It ensures that your Quickbooks presence can not be hacked with just a login password. 

How Multi-Factor Authentication Works

• What You Already Know: This could be your password or PIN
• What You Own: This could be an SMS text message code, a physical security key, or a smartphone with an authenticator app.
• Something You Exist As: This involves biometric authentication techniques such as facial recognition and fingerprint scanning.

Steps to Implement MFA in QuickBooks Online

• Accounts Settings: Access your QBO account by managing its security settings. 
• Use 2FA or MFA: Locate the “Two-Step Verification” option (this may be the term used in place of MFA).
• Choose Your Approach: Choose the preferred approach for receiving the additional verification code. This option typically includes SMS verification or an authenticator app. 
• Follow the Instructions: The mentioned steps will allow you to link your phone number, desktop, or device with your QBO account.

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