Importance of an Audit Trail in the QuickBooks Desktop

Importance of an Audit Trail in the QuickBooks Desktop

QuickBooks is a very convenient way of managing things like viewing the bills, editing the bills, invoices, and manage vendor accounts. You can do all these tasks by using the audit trail in QuickBooks Desktop. The feature of an audit trail in QuickBooks is specially designed so that multiple users can access the data file. A lot of times we face the problem of losing a transaction and we are unable to locate it. QuickBooks Audit Trail is an effective tool that helps you to avoid such kinds of mistakes. 
Let’s look into the following post to know more about the QuickBooks Audit Trail and the steps to turn it on. 

What is an audit trail in QuickBooks?

QuickBooks audit trail feature allows you to keep a record of what changes have been done to the QuickBooks data file. You should turn on this feature to allow multiple users to make changes to the QuickBooks data file. Additionally, it can be a savior when it comes to keeping a record of lots of transactions. There might be a possibility of losing a transaction while locating it. If you have ever got stuck in the same situation, use a great feature of QB i.e. ‘audit trail’ by turning it on. Let’s have a look at some of the benefits of the audit trail and the steps of turn it on.

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Why do you need an audit trail in QuickBooks?

  1. An audit trail in QuickBooks Desktop is a very helpful feature to streamline lots of transactions in QuickBooks. To know other advantages of it, go through the following points and get acquainted with the audit trail QuickBooks.
    1. This feature helps you in locating previous account names that have been merged with the new accounts. 
    2. You can track user login details and activities with the help of audit trail QuickBooks
    3.  Deleted or lost transactions can be easily found via the audit trail feature. 
    4. You can know the task performed and keep your eyes on who is working on the books. 

    Let’s proceed further to know the steps to turn on the QuickBooks audit trail. Further, we have also listed the steps to use this feature.

How to turn on QuickBooks audit trail report?

  1. QuickBooks desktop audit trail is a very crucial feature that should be used with accounting software. As we have mentioned, this feature gives access to multiple users to make changes to the QuickBooks data file. To know the steps to turn on an audit trail, check out the following list.
    1. First of all, choose the Edit menu and then click on preferences.
    2. After that, a dialogue box ‘preferences’ appears on the screen.
    3. Now, you make all the required changes under the Accounting preferences section.
    4. Choose the icon bar and select the Accounting set of preferences. 
    5. And then, choose the Company Preferences tab and choose QuickBooks to use the Audit feature.
    6. Verify Audit Trail and choose Yes. 
    7. Finally, QuickBooks will automatically start keeping a record of the users that want to change the QuickBooks data file. 

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How to customize QuickBooks Audit Trail Reports?

If you wish to customize the QuickBooks Audit Trail report according to your choice then you need to go to the top of the left corner and click on the report. You will see modify Report in the Audit Trail window now. This window opens up to 4 tabs namely Display, Filters, Header/Footer, and Fonts & numbers. These four tabs will offer you many features.

  1. Header/Footer:

In this tab, you can modify or edit what appears on the header and the footer of the report. We are not going into detail as this is very understandable. If you have any queries regarding making changes to this tab, contact our expert. 
header footer audit trail in quickbooks
 

  1. Filters:

Under this tab, you can change the appearance of the report. If you are not interested to change the report, then follow the steps written below:

  1. First of all, go to the Edit and select Preferences.
  2. After that, choose Reports and Graphs > company preferences.
  3. Now, you need to select the Format.
  4. Finally, select the ‘default report settings’.

Filters

  1. Display:

In this tab, you will get choices of customization of the QuickBooks audit trail report. For example, the Report Date Range is one of these choices. Another choice will be the last modified filter that shows when the user has changed the report. You are also free to select the columns that are displayed in the report.
Display audit trail in quickbooks

  1. Font & Numbers:

Under this tab, you can change the appearance of the report. If you are not interested to change the report, then follow the steps written below:
Font - Numbers in audit trail

  • Go the Edit and select Preferences.
  • Now, choose Reports and Graphs > company preferences.
  • After that, you need to select the Format.
  • Select the ‘default report settings.

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To Sum Up:

Hopefully, the aforementioned article contains all the required information regarding an audit trail in QuickBooks. As per the government guidelines, you must have an audit trail in the accounting software after the launch of GST e-invoicing for businesses.

To get additional information, you may get in touch with our team by ringing us up on a toll-free QuickBooks Support Phone Number (1-855-857-0824) . We are all set to guide you in the right direction and help you in making a better decision for your business. 

Frequently Asked Questions

Q1: How to access an audit trail report in QuickBooks Online?
A: Underneath are the steps to run an audit trail report in QuickBooks Online. 

  1. First of all, go to the Settings option and choose Audit Log.
  2. After that, click on Filter
  3. Now, choose the Filter panel and use the fields to select the User, Date, or Events filter. 
  4. Finally, click on Apply. 

Q2: How can you turn off an audit train in QuickBooks?
A: Given below are the steps to turn off an audit trail. Let’s apply all of them one by one. 

  1. The first step is to access QuickBooks Desktop.
  2. After that, find the Utility option and select the Options. 
  3. Now, go to the Range of Date and mark all the boxes. 
  4. Finally, start the Cleanup. 

Q3: What are the steps to remove an audit trail?
A: You can follow up on the following steps to erase the audit trail in QuickBooks.

  1. Firstly, choose the File Menu and hover over utilities.
  2. Click on Condense Data Condense.
  3. After that, choose to keep all transactions except the audit trail from the Condense your company file window. 
  4. Finally, select Next and follow ongoing prompts. 

Q4: Where to find an audit trail report in QuickBooks?
A: If you are working on QuickBooks Desktop, access the audit log report by following the three steps. 

  1. First of all, choose the Reports option.
  2. Now, click on Accountant and Taxes.
  3. Finally, select Audit Trail. 

Q5: How do companies maintain an audit trail?
A: As we know, an audit trail contains a record that keeps the mandatory documentation. Some investors or lenders might need an audited financial statement. You can speed up the process and reduce the cost of an audit by maintaining clear records of all transactions. 
Q6: How to build an audit trail?
A: An audit trail mainly starts with the invoice receipt. You can follow up on the transactions via accounts payable and the electronic payment or check made for the amount settlement.

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How to Use QuickBooks Audit Trail in Desktop?
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How to Use QuickBooks Audit Trail in Desktop?
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To know all about an audit trail in QuickBooks, you can read this instructive post. We have included everything regarding an audit trail in it.
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Accountantsquad
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