Environmantal Accounting

Environmental accountants calculate the environmental costs of economic activity . While some may continue the environmental costs of societal actions as a whole , most deal solely with their company's own costs. These environmental costs have traditionally been lumped in with overhead, where they will not be linked to the products and processes that generate them. Environmental accounting identifies environmental costs specifically, tracking their origins so management can make decisions that reduce them.

What Does an Environmental Accountant Do?
While the foremost obvious application of environmental accounting might be calculating a company's cost of environmental compliance, this is often often only one of the various relevant activities. Accountants' skills can also help save on costs to the environmental itself. repeatedly , environmental accountants can save on both environmental and financial costs by making calculations for the use of alternate chemicals, processes, or product designs. Identifying environmental costs can help companies design cleaner products and make more efficient use of resources.
Environmental accountants may account for the sale or trade of pollution licenses, and licensing of unpolluted technologies. they might also identify potential new sources of income, just like the sale of waste. These professionals also help implement a company's environmental management system (EMS). An EMS could also be a voluntary management technique that ensures systematic implementation and review of customized environmental and safety best practices. Accountants are often involved in planning, reviewing, and reporting on a company's EMS. EMSs following the international standard ISO 14001 are particularly beneficial to the credibility of companies involved in international activities.
Environmental accountants could even be involved in three kinds of accounting:
Managerial Accounting - internal accounting intended to help company management make decisions about purchasing, capital investments, product cost and pricing, process and merchandise design, and compliance strategies. An environmental accountant may create, tweak or document custom accounting practices and systems for his or her company to accomplish this.
Financial Accounting - a kind of accounting intended for external reporting. Financial accounting reports on a company's environmental costs and liabilities to investors and lenders. Financial accounting follows Generally Accepted Accounting Principles (GAAP).
National Accounting - Accounting for a country's natural resources, including national supplies of resources like oil or timber, their economic flows, and their costs.