The Role of User Roles and Permissions in Accounting Software Security

Hey there, business owner! Do you lie awake at night worrying about the security of your financial data? You're not alone. Accounting systems access is a balancing act for many owners, who want to ensure proper access and limitations without hindering employee efficiency.

In this guide, we will show you how to adjust user roles and permissions for your accounting software to improve security, without affecting the productivity of the users. You will explore the principle of least privilege, the best way to set user roles, and the steps that you can take today to help secure your financial information.

User Roles and Permissions: Why Do They Matter?

Some of the most sensitive information about your business is contained in your accounting software. From financial records to customer payment information, this data is essential for both your operations and for potential bad actors.

Defending Against Internal Threats

In fact, most data breaches originate from within an organization itself, either intentionally or unintentionally. Properly controlling access to information will help minimize the risk of sensitive information being compromised.

Compliance Requirements

Many sectors have restrictive policies regarding who can view specific sorts of monetary data. User management makes it easier to comply with requirements like these and helps you avoid any fines.

Streamlined Operations

This helps to lessen confusion in the system, and reduce potential errors during the accounting process.

The Principle of Least Privilege

The principle of least privilege states that users should be granted the minimum level of access necessary to perform their jobs, and no more. This may seem limiting, but it is one of the best security policies you can adopt.

How to Enforce Least Privilege

1. Task each employee with the responsibility of reviewing their jobs.
2. Identify what accounting functions they will be required to conduct.
3. Do not grant permissions except on these needs.
4. Establish, review, and update these permissions on a regular basis as job roles change.

Creating Effective User Roles

User role customization is not equal across all accounting software. Here’s how you can create roles with the aim to improve usability, but also enhance security.

Identify Core Roles

Identify your main roles within your accounting process first:

• Accountants
• Bookkeepers
• Managers
• Executives
• Department heads
• External auditors

Customize Permissions by Role

Define precisely what each role should be able to do:

• View-only access
• Ability to create new entries
• Approval authority limits
• Reporting capabilities

Use Groups for Efficiency

To ease management, create permission groups for common functions:

• Payroll group
• Accounts payable group
• Accounts receivable group
• Reporting group

Essential Security Tips for QuickBooks Users

For enhanced security within QuickBooks, it is important to not only utilize the user roles within the software, but to also set folder permissions for QuickBooks on the operating system level, to prevent unauthorized access.

Ongoing Permission Management Best Practices

Security is not a set-it-and-forget-it proposition. New roles and permissions are constantly arranged and removed, so it is critical to keep up with them regularly.

Schedule Regular Reviews

When user roles and permissions are set up, set a calendar recurrence to review access every three months or when key changes in personnel happen.

Document Your Process

Build a documented policy defining how user permissions are granted, audited, and changed.

Implement a Check-in System

Make permission changes take effect only after a manager has endorsed them for their employees.

Common Mistakes to Avoid

Even the best-intentioned businesses create user permission management errors. Here are traps to steer clear of:

Using Shared Accounts

Every employee must have their individual credentials. Shared accounts make it difficult to know who did what and introduce security gaps.

Over-privileged Accounts

Access, if not needed, creates unnecessary risk — giving employees access above and beyond what they require to do their job “just in case.” Use the least privilege principle.

Neglecting to Remove Access

Revoke or adjust employees’ access to accounting systems immediately when they leave or change roles.

General FAQ on User Roles and Permissions

Q: What should I do from time to time regarding user permissions in my accounting software?

A: It’s best practice to review permissions at least quarterly, and any time there’s a significant change in staff or system.

Q: Is it possible for me to provide access to specific functions in my accounting software temporarily?

A: Some accounting systems will allow temporary access privileges. Look in your software’s documentation to see if that feature exists.

Q: I suspect there has been unauthorized access to my accounting system. What should I do?

A: Change any affected passwords right away, check audit logs to see what was accessed, and seek help from a cybersecurity professional.