The triple bottom line as said by small business accountants in Sydney
First you’ll need to know what the triple bottom line (TBL) is. It is an accounting framework that incorporates three dimensions of performance, which are social, environmental and financial. This method is different from the traditional reporting frameworks as it includes ecological and social measures. In this article, our small business accountants in Sydney will explain how the TBL works, read on for more information.
This accounting framework called the TBL goes beyond the traditional measures of profit, return on investment and shareholder value to include environmental and social dimensions. By focusing on comprehensive investment results and with respect to performance along with the interrelated dimensions of the TBL reporting can be an important tool to support sustainability goals.
The most important thing when doing your accounts is not trying to explain the meaning of the TBL, but how you measure it. Since the TBL is occasionally called the 3Ps: people, planet and profits, you need to be able to find a common unit of measurement between the three, which is quite difficult. Some mention advocate monetising all the dimensions of the TBL. While this would have the benefit of there being a common unit, most people would disagree putting a value on wetlands or endangered species. There are many different was to calculate your TBL such calculating it in the terms of an index, but at m.a.s accountants we would choose the best variable option for your business.
For any advice on for your small businesses accounting, be sure to contact our small business accountants in Sydney for all your accounting needs.