Hurricane Ida, the Texas freeze, devastating wildfires in Colorado and California, deadly tornado that hit Kentucky and nearby states – these weather catastrophes and other extreme climate conditions that hit the US in 2021 alone cost an estimated $145 billion in damages, not to mention the hundreds of lives claimed by these disasters.
Corporate Goals for a Greener Planet
Businesses are crucial in the preservation of our planet. This translates to making radical changes in the way they transact. Instead of ignoring environmental and social costs to pursue profit, enterprises are pressed to embrace sustainability. Accountants are in the perfect position to help businesses do just that.
If you have a company, say in Kearny, NJ, there are firms offering accounting services that can show how you can integrate sustainability into your business model and processes while making sure that your company remains financially stable. Let’s go over 3 sections where their expertise in business sustainability is manifested.
Changing the Benchmarks of Success
The touchstone of success differs from company to company, with high sales revenue being the most common one. Accountants can develop a reporting strategy that discloses not only financial but also relevant non-financial information that impacts a company’s long-term success. This kind of transparent reporting can provide stakeholders a robust explanation of how and when sustainability issues could affect a business. Furthermore, it can guide the company’s decision-makers to come up with benchmarks that go above and beyond financial profits to include progress being made on environmental and social issues.
On-The-Ground Monitoring and Measuring
Accountants have long-standing experience in the auditing business. Their skillset, along with their professional judgment, warrants accuracy in their measurements and ensures that companies steer away from short-termism. What’s more, the fact that they do their tasks on the ground gives them the opportunity to do a side-by-side analysis that can help identify areas where it may be possible for an organization to take a green approach. In the long run, implementing earth-friendly practices such as carbon footprinting, and ‘greener’ offices can lead to reduced overhead costs and increased efficiency.
It’s also important to note that the data they gather from monitoring and measuring is essential in incorporating sustainability into the budgeting and pricing decisions, investment appraisals, and strategic planning of a company.
Societies and trades are founded on trust. To prevent undermining that trust, independent assurance is put in place to guarantee the trustworthiness of what is being reported and prevent greenwashing. The expert opinion of an accountant is not just based on speculations and personal preference, but rather based on professional assessment and appropriate methodology.
Therefore, they can objectively pinpoint an organization’s weaknesses and flaws, and offer insights on how they can achieve long-term sustainability goals. They can also guide businesses to realize the benefits of sustainable practices in the form of higher customer satisfaction, lower attrition rate, subsidy, and funding options that help companies attain sustainability, among others.
Whether you are a start-up business or a Fortune 500 company, what you don’t want is for your business to be stagnant. So why not take the first step in your journey to corporate sustainability. Hire accounting services in Kearny, NJ for your business today.