Setting the standard for

going green...

Accounting for Carbon Emissions - On February 27th 2008, Access Accounting launched a new module for their award winning Access Dimensions accounting solution.

This exciting new development will enable organisations of every size to monitor their emissions without having to invest in separate applications or to modify their current business processes.

The Accounting for Carbon Emissions module is the smartest way for organisations to take control of their carbon footprint without adding cost or complexity. Working alongside carbon emission experts DEFRA and the Carbon Trust, their current guidelines were translated into a practical, easy-to-use software solution that is provided as standard within the Access Dimensions accounting solution.

Darren Clifton-Jones of Soft-Works (UK) Limited said, "The reporting functionality provided by this solution will allow organisations of all sizes to track their emissions. By having the functionality to easily record relevant information across a wide range of activities, this will enable individuals to make more informed decisions that will in turn result in emission reduction".

Setup

Accounting for carbon emissions functionality is configured within the Nominal Ledger of the Access Dimensions system. Each emission type is classified by Emission Group, which is in accordance with Defra guidelines and closely follows the existing nominal coding system for consistency. The system is supplied with all the Defra recommended conversion factors for each emission type, providing a consistent framework from which to measure carbon emissions. Once the user has decided which nominal accounts will have corresponding carbon entries for example, fuel, electricity or gas they simply retrieve each nominal code and flag it as ‘account for carbon’. This analysis is automatically copied onto the carbon transactions for more detailed reporting.

Transactions

Accounting for Carbon Emissions is intrinsically linked to the rest of the modules within Access Dimensions. This ensures that the capture of carbon-related data simply extends from standard working processes with no significant impact the user’s daily routine. Incorporating carbon emissions data to each transaction is straightforward, adding just seconds to each standard Purchase Ledger transaction. If a particular transaction has been flagged to ‘account for carbon’ within the Nominal Ledger, then a ‘carbon entry’ window will pop up automatically after the user has entered the standard details for that particular record. Because the record pulls through its Emission Group information from the Nominal Ledger, all the user needs to do is enter the required carbon quantity. Pre-defined standard units of measurement for each Emission Group allow the Quantity to be entered in any number of standard formats, whether miles travelled or litres of fuel consumed. The system then automatically converts the emission quantity into equivalent carbon units. Any subsequent transactions posted to that particular nominal code will automatically prompt a corresponding carbon entry.

Historical data

The system also allows the user to append transactions already processed. This makes it practical to create a baseline for comparison and monitoring purposes even if the software is installed partway through a company’s financial year. Including this historical data will give the board a benchmark against which it can monitor trends.

Flexible recording options

Industry-specific processes and their equivalent conversion into CO2 can be manually entered into the ‘Sundry Enterprises’ table within the system to accommodate non-standard emissions.

Journal entries

Ad-hoc transactions not supported by a nominal record can still be accounted for via the journal transactions facility to provide completeness to the carbon accounting process.

Budgeting and reporting

Having entered carbon-related data into Access Dimensions, setting actions for carbon reduction is the next logical step. The module contains an easy to use budgeting facility for the administration of carbon emission reduction targets and over 30 reports to monitor progress. Budgets can be defined by Emission group; each is broken down by corresponding Classification so that each sub-group can be allocated individual targets. Budgets can be created on a periodical basis to fit the duration of the project. The module delivers periodic or on-demand information on carbon emissions and departmental analysis via standard reporting tools.

Key benefits:

Prepares businesses for future demands

Current recommendations from the EU Greenhouse Gas (GHG) Protocol already aim to make corporate accounting for sustainability as rigorous and auditable as current financial reporting procedures. By adopting a system that is fully integrated into a leading business and accounting software package now, businesses can empower themselves for the future.

Improved image among the carbon-conscious community

By communicating with employees and customers regarding Accounting for Carbon Emissions efforts, businesses are able to develop a thought leadership position among competitors.

Improved business opportunities

Companies that measure and report on their carbon emissions will be in a strong position to get on lists of ‘carbon responsible’ companies when such lists emerge and buyers will consult with this type of list-based resource to make decisions.

Easy to administer, low cost

By integrating this comprehensive system into the Access Dimensions accounting system, this provides businesses with a straightforward way to manage and measure their carbon emissions with minimal impact on day-to-day activities.

(Article published March 08)

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