A Career in Environmental Accounting

Often referred to as “Green Accounting” or “Resource Accounting”, Environmental Accounting studies the statistical aspects of how the environment is contributing to the functioning of an economy and also involves keeping a tab on the deterioration of resources. It is emerging as a specialised field of study and has stemmed from the blend of two distinct worlds of Environmental Sciences and Accounting. Through this blog, we aim to delve deeper into the key aspects of Environmental Accounting, the major courses you can choose from and the immense career scope it entails.

What is Environmental Accounting?

Environmental Accounting is a divergent field which analyses the economic impact of the environment on the national as well as global levels. Many companies or agencies implement this specialised aspect of Accounting to facilitate all business-related decisions while keeping in mind the use of environmental resources. Following are the major conceptual specialisations covered under the course:

• Macro Environmental Accounting
• Micro Environmental Accounting
• Accounting for Monetary Value
• Accounting for Physical Units
• National Economy
• Individual Company Level

Types of Environmental Accounting

There are 4 forms:

• Environmental Financial Accounting: Environmental financial accounting is concerned with accounting for and reporting on environmental transactions and events that affect or are likely to affect an enterprise’s financial position.
• Environmental Cost Accounting: An environmental cost accounting system is a flow and decision-oriented extension of traditional cost accounting systems. It is based on cause and effect analysis, which aids in correctly attributing the costs of environmental impacts to their perpetrators.
• Environmental Management Accounting: The identification, collection, analysis, and use of two types of information for internal decision-making is referred to as environmental management accounting. The first is physical data on energy, water, and material use, flows, and rates (including wastes). The second section contains monetary data on environmental costs, earnings, and savings.
• Environmental National Accounting: Environmental accounting, also known as green accounting, is a modification to the System of National Accounts that takes into account the use or depletion of natural resources. Environmental accounting is a critical tool for managing the environmental and operational costs of natural resources.

Who is an Environmental Accountant?

An Environmental Accountant calculates the costs invested in complying with environmental regulations and organising voluntary programs along with the environmental costs of several other business activities. The accountants guide the firm managers to reduce or eliminate costs by keeping a record of the environmental resources utilised for their business activities. To reduce further business expansion and environmental damage, the accountants suggest alternative processes, and supply chains along with other several options ensure efficient use and minimal wastage of resources. Moreover, environmental accountants are the masterminds behind varied innovative schemes such as pollution allowances and revenue-generating waste streams,

Must Read: Cost and Management Accounting

Responsibilities of Environmental Accountant

Here is a list of key roles and responsibilities handled by an Environmental Accountant in a business organisation:

• Calculating the historic data and recent trends, the accountant design energy-efficient goals.
• Keeping a record of the usage of raw materials by the firms.
• Keeping a track of the availability of resources used in the production of goods and services of the company.
• Conducting several surveys/analyses to determine whether there is an adequate substitute available for the raw materials used.
• Finding effective ways to minimise wastage of resources in manufacturing and production processes.
• Invigilating and updating company practices.
• Ensuring the renewal of traditional systems of energy with new and better ones.

Eligibility

Candidates willing to pursue a course in the same course are required to fulfil the following requirements:

• Applicants must have qualified for the CPA exam.
• Work experience of a minimum of 1 year under a licensed CPA.

Subjects

Its courses generally comprise the following key concepts:

• Advanced Accounting
• Marketing
• Finance
• Cost and Managerial Accounting
• Business Law
• International Accounting
• Management
• Individual Income Taxation
• Accounting Communication
• Analysis of Corporate Financial Statements
• Auditing
• Tax Research and Analysis

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Career Prospects

Since it is still emerging as a full-fledged career field, this course offers an array of unexplored sub-fields that graduates can choose from. To help you in your research, below we have mentioned the major job areas you can pursue after completing the degree in the same field: 

• Water Management
• Pollution Control Management
• Environmental Consultancy
• Environmental Science
• Control and Risk Management
• Sustainability Management
• Land and Property Development

PPT

Environmental accounting from Abhinav Rai

Must Read: Multidisciplinary Nature of Environmental Studies

This course will equip you with an understanding of how effectively natural resources can be utilised and how a business firm can implement various methods and techniques to ensure that its production and manufacturing processes are causing a minimal impact on the environment. You can take the help of our Leverage Edu‘s experts and find the right combination of a program and university that matches your interests and career aspirations.