Codestone

Category: Accounting software

Firms looking to improve their auditing standards might find that investing in accounting software is a particularly shrewd move to make.

Such a suggestion comes after a new report revealed some banks are using loopholes in accounting regulations to alter their financial results, including profit levels and staff bonuses.

The Adam Smith Institute released the paper that showed there are some complex systems that can be employed to conclude that profit is different to its true figure.

Gordon Kerr, a former banker and author of the report, told the Guardian: "The accounting regulation system needs radical reform so that banks are not encouraged to invest in risky assets to make themselves seem more profitable than they really are."

One way to ensure accurate and fair results could be to invest in specialist accounting software.

Macomb County in the US recently showed the potential need for accounting software when a financial error resulted in it suffering a $1.7 million (£1.1 million) hole in its budget, the Detroit Free Press reported.

Posted by Shannon Wells