How to Handle Having Too Many Cooks in the QuickBooks Kitchen

The Importance of Internal ControlsThe dilemma: you’re making a meal – you have the sauce sautéing, you have the pasta boiling and the meat is browning and yet there are those around you who want to see what you’re doing and provide input before you are finished. That’s when I start dishing out samples. Samples are good and I enjoy them plenty myself. They allow everyone to be a part of what’s being created, offer suggestions and ultimately make a better meal as a result. So how do you handle the many proverbial hands in the soup pot when it comes to business books? Begin with internal controls. Internal controls are what help an organization keep order while achieving its goals and objectives and detecting possible operational threats. Strong internal controls are essential to protect all levels of management, the effectiveness and efficiency of operations and the reliability of financial reporting. This is why every organization needs to have a framework, a set of kitchen rules if you will, that outlines the management responsibilities for operations. Defining Internal Controls for an AssociationIf you are specifically hiring outside accountants or employees to provide bookkeeping service, internal controls need to be defined. When doing so, consider the following steps.

1. Review governing documents to determine the board’s role and responsibility in financial reporting.
2. Select an outside accountant or employee and review the management or employee contract to ensure it defines their role in the financial reporting process.
3. Choose who will enter the data versus who will just want the ability to view the financial reports. In most cases, we find that it is the management company or the designated employee who is ultimately responsible for handling the data entry into the accounting software.

 Possible Issue (and Solution) With Having Too Many Cooks in the KitchenAn issue the board of directors often experience is the inability to have real-time access to the accounting software where their financial data is held, specifically QuickBooks. So, how can you protect all levels of management and the integrity of financial data inputs while allowing multiple cooks into the kitchen? You guessed it, give out samples. Although the outside accountant or designated employee is the one actually entering data, you can create a separate user in the QuickBooks file for the board members who want real-time access to financial data that is not supplied in the monthly financial packet.  Specifically, they would be able to view financial data but not enter or modify existing financial data.  This solution allows for internal controls to remain intact while giving board members access to real-time data. It is a delicious solution for all.Thank you!Amy