Having a strong password associated with your QuickBooks file is important for two reasons:
1. It will help keep external hackers from accessing your financial information.
2. It will keep internal staff members from accessing information.
Layers of Security
Besides just requiring a password to get into QuickBooks, Intuit has extra layers of security for users. One layer requires a person attempting access to QuickBooks to verify that he or she is authorized to use the file. Another has to do with credit card information. If a user stores customer credit card data in QuickBooks, or has the “credit card protection” feature turned on, a password must be created to get into the software.
The final layer is for the administrator of the account. QuickBooks will notify the admin if other users haven’t set up a password. The admin will have the ability to recommend other users create a password or the admin can assign a password to a user.
Here are other security tips to ensure data safety:
- All users should have a password for their QuickBooks desktop file.
- Users should choose a strong user name and password. Use unique combinations of letters, numbers and characters (such as $ and %) in a password — not basic words that can easily be found online or in the dictionary.
- Users should protect all personal information. Don’t share a user name and password with others or let colleagues sign in with your information. Make sure to use different passwords for each account.
- Users should be using the latest version of QuickBooks or on versions released within two years back. Those versions have the most up-to-date security features.
- What if a user needs to share a QuickBooks file? It’s recommended he or she use a secure method such as the Accountant’s Copy File Transfer (ACFT) service, when sharing QuickBooks files.
So, yes, passwords can be a pain to come up with and update. But the real problems will begin if your data is hacked or money is stolen from your business. So, keep things easy. Make your passwords difficult.
Contact our Tax Services team if you have any questions about setting up and managing QuickBooks.