How to Avoid Security Risks With 1099 Tax Numbers

Ask the Accountant…

Question: How can you suggest not keeping 1099 tax id numbers in QuickBooks? If I have security risks with this information, don’t I have security risks with all of my company information in QuickBooks??

Answer: The security risks to your QuickBooks can come from external and internal sources. Of course, you must keep your computer and QB secure from hackers, not clicking on scam emails that would let someone into your computer, QB, etc. You also need to keep a backup in a secure cloud in case your data is corrupted, hacked or hijacked.

There are also internal threats. How many people are in and out of your QuickBooks? How many users do you have and what access do they have? What happens when you have a QB problem that requires an IT or QB support person logging into your program? Googling to find QB support (rather than contacting through QB itself) more often than not will expose you to scammers.

I am in and out of distributors’ QB's routinely. I suggest that tax ID numbers not be in QB because it’s too easy to access that. I do prefer to err on the side of caution. I personally do not want my Social Security Number or EIN there, so I advise my clients accordingly.

Harriet Gatter is a QuickBooks ProAdvisor, a former accounting professor and a former ad specialty distributor of 23 years. She advises ad specialty distributors about using QuickBooks Premier & Enterprise to save time, eliminate errors, and correctly account for your business.

HGatter@AccountingSupportLLC.com www.AccountingSupportLLC.com

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