Follow
If you are interested in learning more about the various subsets of the accounting sector, you might be wondering what Environmental Accounting is. By reading the information found below, you can obtain an answer to this question and several others that pertain to environmental accounting.
Environmental Accounting – The Basics
Although broadly defined, environmental accounting is basically a subset of accounting that involves the interpretation and use of environmental and economic information. Environmental accounting can be actualized at the corporate or national level. When it transpires at the national level, environmental accounting can function through an economic organization such as the National Accounts of Countries. To facilitate the economic vitality of a business, environmental accounting seeks to identify the allocation and use of resources while also measuring and communicating the costs that companies have on the environment. Some of these costs can include things such as the price to be paid for remediating sites of contamination, taxes and penalties, waste management, and the purchase of technologies that entail pollution prevention. There are two types of systems that can give environmental accounting shape and substance. The first is environmentally differentiated conventional accounting, which involves measuring the effects that the environment has on a business in economic terms. The second is ecological accounting, and this system measures the effect that companies have on the environment in physical measurements.
Environmental Accounting – Specialization
Individuals who wish to pursue a career in the field of environmental accounting should know that specialization can be the key to making oneself a marketable job candidate. With this thought in mind, it is important to recognize that there are three major areas of specialization within the field of environmental accounting. They include:
1. Environmental Management
Environmental management accountants are responsible for collecting and analyzing information on pollution controls and materials flows for the executives of a business.
2. Environmental Financial Accountants
Environmental financial accountants work to create analogous reports that will be reviewed by external audiences, such as regulators and investors.
3. Environmental National Accountants
Environmental national accountants analyze the “bigger picture” of business costs in relation to the environment. Specifically, they analyze the use of natural resources as well as how companies across the nation address and respond to environmental impacts.
Educational Requirements/Skills
According to John Rossheim, author of “Environmental Accountants Do It for the Green,” there is no degree in environmental accounting that an individual can obtain in order to begin work in the field. Therefore, it is generally advisable for an individual who wants to pursue a career in this sector to earn an accounting degree. Additionally, individuals who want to work in the field of environmental accounting should become a CPA (Certified Public Accountant) by taking the qualifying exam for this designation.
There are a variety of skills that individuals who want to work as environmental accounting should have, including the ability to work with people across a broad range of disciplines (such as risk managers, scientists, public relations professionals, senior executives, and regulatory specialists.)
Related Resource: Become an Actuary
Conclusion
If you are thinking about pursuing a career in environmental accounting, you should know that this can be a personally and professionally rewarding decision. Now that you have an answer to the question “What is environmental accounting?,” you can determine whether pursuing a career in this sector would be appropriate and advantageous for you.