Question

You finished entering all the transactions for last year and just sent the file to the tax preparer. How do you ensure that no one accidentally deletes, edits, or adds a transaction to last year?

a) Set up password protection for last year's transactions.
b) Create a closing date password to prevent changes.
c) Lock the transactions for the entire last year.
d) Make a backup of the last year's data file.

Answer 1

To ensure the integrity of last year's transactions, you can set up password protection, create a closing date password, lock the transactions, and make a backup of the data file.

Step-by-step explanation:

To ensure that no one accidentally deletes, edits, or adds a transaction to last year, there are several precautions you can take:

1. Set up password protection: You can password protect the file containing last year's transactions. This way, only individuals with the correct password can access and modify the file.
2. Create a closing date password: You can set a closing date password that prevents any changes to transactions after a certain date. This ensures that last year's transactions remain untouched.
3. Lock the transactions: Many accounting software programs allow you to lock transactions for a specific period, such as the entire last year. This prevents any modifications to the transactions during that period.
4. Make a backup: It's always a good practice to make regular backups of your data files, including last year's transactions. This way, even if something accidentally gets deleted or modified, you can restore the original data from the backup.