With the increased awareness of the contemporary issues impacting our environment, understanding the role of sustainable development has become the need of the hour. 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, 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 level. Many companies or agencies implement this specialised aspect of Accounting to facilitate all the business-related decisions while keeping in mind the use of environmental resources.
Increasing the efficiency of environment and facilitating sustainability along with cost reduction is adapted through Environmental Accounting. Pursuing a course in this field, you will get to understand the consequences, impacts and costs that are forced on the environment when it comes to generating a hike in the economy.
Following are the major conceptual specialisations covered under Environmental Accounting:
- Macro Environmental Accounting
- Micro Environmental Accounting
- Accounting for Monetary Value
- Accounting for Physical Units
- National Economy
- Individual Company Level
Who is an Environmental Accountant?
An Environmental Accountant calculates the costs invested in complying to the environmental regulations, organising voluntary programs along with the environmental costs of several other business activities. The accountants guide the firm managers to reduce or eliminate the costs by keeping a record of the environmental resources utilised for their business activities. To reduce further business expansion and environmental damage, the accountants suggests alternative processes, supply chains along with other several options to 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,
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 production of goods and services of the company.
- Conducting several survey/analysis to determine whether there is an adequate substitute available of the raw materials used.
- Finding effective ways to minimise wastage of resources in manufacturing and production processes.
- Invigilating and updating the company practices.
- Ensuring the renewal of traditional systems of energy with new and better ones.
Candidates willing to pursue a course in Environmental Accounting are required to fulfil the following requirements:
- Applicants must have qualified the CPA exam.
- Work experience of a minimum of 1 year under licensed CPA.
Subjects Under Environmental Accounting
Environmental Accounting courses generally comprise of the following key concepts:
- Advanced Accounting
- Cost and Managerial Accounting
- Business Law
- International Accounting
- Individual Income Taxation
- Accounting Communication
- Analysis of Corporate Financial Statements
- Tax Research and Analysis
Career Prospects After Environmental Accounting
Since it is still emerging as a full-fledged career field, Environmental Accounting offers an array of unexplored sub-fields that graduate can choose from. To help you in your research, below we have mentioned the major job areas you can pursue after completing a degree in Environmental Accounting:
- Water Management
- Pollution Control Management
- Environmental Consultancy
- Environmental Science
- Control and Risk Management
- Sustainability Management
- Land and Property Development
Environment is at a stake of being completely destroyed by the reckless and excessive use of natural resources. There are numerous factors which affect the environment and they need to be altered. A course like Environmental Accounting will equip you with the understanding of how effectively natural resources can be utilised and how a business firm can implement various methods and techniques to ensure that it’s production and manufacturing processes are causing a minimal impact on the environment. You can take the help of our Leverage Edu‘s AI tool to browse through the varied range of courses offered in Environmental Accounting and find the right combination of a program and university that matches your interests and career aspirations.