Codestone

Category: Accounting software

Financial errors that may lead to the loss of £1.4 billion could have been prevented with the use of top-quality accounting software.

The sum is owed in unpaid fines and penalties dished out in UK courts, but the National Audit Office (NAO) has refused to give permission for the money to be collected, suggesting no accounting records relating to the punishments can be found.

Out of a total of £1.9 billion owed to the courts, just £457 million is likely to be successfully received as a result of the error.

Amyas Morse, head of the NAO, said: "Because of limitations in the underlying systems, HM Courts Service has not been able to provide me with proper accounting records relating to the collection of fines, confiscation orders and penalties."

Using accounting software could make it easier to plot statistics and keep records.

Ex-banker Gordon Kerr this week told the Guardian that reform is required in the accounting sector to stop banks exploiting loopholes to publish inflated profits.

Posted by Jamie Rees