Cost Effective Accounting Techniques– Eco-Friendly Strategies
It’s no secret that in today’s markets operating an environmentally friendly business can go a long way. Corporations such as IKEA, Panasonic, & Adobe have been known for implementing modern Green Accounting policies to benefit our planet, but also increase their bottom-line. The concept of big business reducing costs by going Green relates well to small to midsize companies. Many business owners large or small are hesitant to switch accountants, let alone change up company structure. Keeping an open mind has added value to change and has proven to be advantageous for those changing with modern times.
Nike for example uses post-consumer recycled materials in several of its products. Partnerships with NASA and other government agencies to study “green” processing of raw materials into goods, has provided outlook into the future of reducing expenses. They have also gone on to reduce costs of packaging, and renewable energy at its plants. Other projects include recycling of athletic jerseys from major sporting events such as the World Cup.
On the small to mid size front, companies have cut costs immensely by going paperless. For example as a tax preparer I have made it appoint to PDF all my clients’ tax returns. Printing out thirty plus pages per client for both federal and state returns makes little sense. This saves trees, lowers costs of ink refills and printer maintenance. Emailing rather than mailing documents also will cut costs through lack of need for postage and envelopes. Tons of companies still send out invoices and monthly statements. It is smarter business to email unless your client requests otherwise. Storing documents on a secured drive also allows you to be more efficient with less time spent searching for documents. Being tech savvy will slash expenses and allow for reinvesting of revenue.
Other businesses have gone on to completely relocate their facilities for Eco-friendly structures. Panasonic has set aggressive energy goals but has followed through on them. What sets them apart is the way they’ve incorporated sustainability into their day-to-day life. It moved its entire North American headquarters from suburban Seacaucus, New Jersey to a LEED certified building in Downtown Newark near Penn Station. This was an intentional move to eliminate the need for employees to drive to work and reducing their carbon footprint. The Leadership in Energy and Environmental Design (LEED) is a standard certified and developed by the U.S. Green Building Council (USGBC) focusing on development projects to use resources efficiently and maintain environmental responsibility. Panasonic succeeded in their risky relocation.
When choosing a location for your small to mid size business so many factors come into play. Depending on your sales and factors such as debt to equity ratio, location will make or break your business. If you are feeling the high cost of rent and other operating expenses, look to rent a space you can both live and work from. The business model of Remote Accounting Services is to provide anyone affiliated with my business to work at their convenience and need. All you need is a laptop and WiFi connection. In today’s world channels such as video conferencing, email, conference calls, or face to face interactions allow business to be done anywhere the world. Home offices are tax deductible and can allow business owners to eliminate their work commute. You can also reinvest profits into your business as opposed to a car/insurance payment.
Relocating, especially to LEED certified structures, has spread quickly among big business. Adobe Systems has been regarded as one of the top Eco-friendly IT companies by major media researcher Newsweek. When you operate more than 70 percent of your business in LEED certified buildings, that claim is hard to deny. With several locations in California where droughts have reached historic lows in recent years, Adobe has reduced 60 percent of its water consumption since 2000. It’s incredible to see big business take pride in being Eco-friendly. This trend is not common among corporations but is becoming a widely spread concept.
If relocating your operation is not an option, researching your vendors and business partners’ practices can be Eco-friendly. Focusing on environmentally friendly carriers, raw materials providers, packaging, and various other areas of creating your product and shipping it are a great starting point. Most shipping carriers have state and federal requirements. Seeking the lowest bidder depending size and importance of your cargo is not always the answer. Reading the labeling on raw materials and origin of their location is extremely important. Lawsuits, bad press, and other factors can really put the heat on and end your dream before it is fulfilled.