The Best Ways to Practice Green Accounting

Profitability of any business or organization can be defined by the accounting abilities. To maintain the optimum performance of the accounting operations, businesses spend a significant amount of resources in terms of manpower as well as technology and energy. As the environmentalists realized that the immense utilization of resources is not reducing the resource availability but also inviting disastrous side-effects.

To delay or eliminate the arrival of any such situation, several initiatives have been started to raise concern over the degrading situation. One such initiative to save accounting techniques from harming the planet Earth is “Green Accounting”. The motivation behind Green Accounting is to adopt the methods and resources that do not take a toll on the environment while balancing the performance as well.

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Here are the best 5 ways to practically adopting Green Accounting in your business and contribute to the planet:

1. Identify Accounting Techniques That Cause Environment Damages

Improvement begins with the analysis. Look into the conventional accounting system that you are practicing to look the energy that is being consumed by different segments of the system. Depending on the business that you serve, the segments could vary, such as – PC usage, electricity consumption, paper wastage, etc. This analysis should give a fair idea of the energy inefficient methods and resources that are in action. Once you have identified them, implementing a greener solution will not take much effort.

2. Involve Environment in Your Performance Parameters

One of the basic tasks that every accounting department does is measuring the performance of the organization. Traditionally, such performance is calculated on the economic parameters. But with rising concern over the environmental factor, modern systems have started to involve the natural assets in the calculations. A prime example of such change in the system is the replacement in NDP calculation suggested by System of Environmental Economic Accounting (SEEA). The recommended NDP is known as EDP (Environmental Domestic Product).

To make your contribution towards the environmental benefits, it is better to switch quickly to such calculations and ensure that it not only the money that you are counting upon.

3. Go Paperless

Invoices, payroll slips, tax forms, payment reminders, and there are a number of other ways in ways paper keeping on contributing to the chunk in the accounting department. Not only the paper creates chaos with maintenance, but also hurts the environmental causes dearly. Though immediate elimination of papers from the business is not possible at present, its usage can certainly be reduced significantly in accounting. Adopting advanced software, encouraging e-payments, filing taxes online, etc. are some of many methods of doing paperless accounting. When going paperless is not possible, opt for the smaller fonts, both side printing and narrowed margin options.

4. Switch to Green Devices and Solutions

Electronic devices, such as – accountant’s workstation, server, printer, etc., have been consuming the energy in your accounting department to keep the productivity fast-paced. Replacing them with low-energy consuming devices is the best option of keeping the same level of productivity going and still reducing the electricity consumption. Always check the energy-star rating for the devices that you use for accounting operations. Moreover, move the cloud with as much as possible options. Enriched with amazing performance features, cloud computing is a proven to help with the green causes. Other advantages of opting for cloud computing is that it is a cost-effective solution.

5. Stick to the Basics with Green Practices

When we talk about going green with accounting, such basic practices will remain similar to most other business processes. Here are some common go-green tips:

• Follow the 3R concept of reducing, reusing and recycling should be implemented in all the possible ways.
• Don’t waste electricity. Switch off the lights, computers, and other electronic devices when not in use.
• Allowing natural light to lighten up the cabins.
• Encourage public transport or work-from-home among the employees.

Initially, going green may affect a little on the economic grounds but it will ensure a better future along with cost saving in the longer option.