Estimated reading time: 3-4 min
22 October 2021 Greenaumatic participated in the session Smarter – The Digital Transformation at the EFAA International Conference 2021 – EFAA for SMEs, together with Alfa Accountants.
During this session panellist shared their experience on the digitalization of Professional Accountancy Organisations (PAO’s) as well as how to effectively support Small- and Medium-Sized Accountancy Practices (SMPs) as they undertake digital transformation.
As per Oct 28 all sessions at EFAA have been released and can be found here.
Greenaumatic elaborated on how digitalization and data are used to create relevant ESG reports. The data at hand to accountants, combined with client data, can provide constructed and valuable insight in non-financial objectives and their financial impact.
A transition to digitalization introduces challenges, but the value creation more than compensates the investment. Digitalization needs to be anchored top / down through the organisation to succeed. Technology may provide a solution, but the commitment of people paves the way to success. Data is considered the New Oil of the Digital Economy. And at the heart of this Digital Economy are accountants;
“Accounting, which has been called the “language of business”, measures the results of an organization’s economic activities and conveys this information to a variety of users, including investors, creditors, management, and regulators.” Through digitalization and data mining accountants can contribute immense value to their clients businesses. ESG reporting is one of these value creations by measuring sustainability and the social impact of an investment by a company (return & risk).
Digitalization & Sustainability
Sustainability and ESG are currently extremely complex for SME’s. Accountants can provide insight and guidance for their clients in this journey. The way to obtain this for SME’s is through practical and low threshold digital solutions. Data is ‘mined’ from in-company sources and impact results are directly presented within a digitalized environment.
When looking at sustainability, and in particular ESG reporting, Greenaumatic has solved a major part for you so you can start today at turning financial data into sustainability information.
For example, let’s take a look at the Transport sector. It is one of the sectors with major wins to gain in terms of CO2 reduction. SMP’s know fully well the fuel expenses of their clients in the Transport sector. With several in-company data elements and a basic what/if scenario, the estimated CO2 emission can be calculated and related to SME’s business indicators like revenue, result, CO2 carbon pricing, etc.
You have created a base to easily convert data into valuable information, advice, strategy development and cost optimization. Defining non-financial objectives may not be an exact science, but this is also not needed at this point. The essence is translating existing financial figures in comprehensive non-financial data like 180.000 trees or 3.700 tons CO2. We just need to get started and evolve organically; step by step. In our Transport project at Alfa, we provide such an initial scan to kick off this process and initiate a strategic discussion.
Turning data into information and compiling advice can support numerous different sustainability accounting services. We helped a Transport company to understand how sustainability is relevant for them based on their own data. We made their data comprehensible in relation to ESG, and at the same time relevant for their business.
We need practical tools/solutions!
For an accountant it is clearly challenging to work with estimated and non-complete figures, but we planted a seed and quantified the business risks and opportunities at a high-level. From experience most SME’s certainly gain interest to become more knowledgeable and start thinking what they can do to mitigate risks and cease opportunities. By understanding the SME’s challenges (fuel consumption reduction, city zero emission zones, truck investments) SMP’s can accommodate the coordination of strategic and operational reduction plans. This way SMP’s can help SME’s focus on what suits their business best at that time. Taking action and contributing to sustainable impact becomes within reach.
Choosing to offer additional services and expertise, such as ESG support and reporting, generates growth beyond your traditional core. It extends into the creation of relevant ecosystems, enhancing market presence and competitiveness. If not only did COVID19 confront us with the necessity of digitalization, you will be creating value for your legacy customers and providing new entrance opportunities for new market segments you would traditionally not reach. ESG investing is becoming increasingly popular and is most likely to be an investing approach used by millennials. You will be actively contributing to a more sustainable economy and society for future generations.
Get to work
Do you want to get started with our ESG solutions? Would you like an ESG report for your customers? Do you have a question about ESG? Or would you be interested in a comparable pilot as we have done with Alfa Accountants?
Please contact us. We look forward to hearing from you! E-mail us
EFAA, the European Federation of Accountants and Auditors for Small and Medium-sized enterprises, is the umbrella organisation for national accountants and auditors’ organisations whose individual members provide professional services primarily to SMEs. EFAA has 13 members throughout Europe representing over 350,000 accountants and auditors.
Professional accountancy organizations (PAOs) are membership bodies comprised of individual professional accountants, auditors, and/or accounting technicians who perform a variety of roles in the accountancy field and adhere to high-quality standards of practice.
Alfa Accountants is an accountancy and consultancy organization for the agricultural sector and small and medium-sized businesses with 35 offices in the Netherlands. Alfa serves its customers with broad financial knowledge and specialist industry knowledge. Alfa has a growing advisory practice in the field of valuation, subsidies and mergers and acquisitions and also works across borders within the worldwide network of DFK International. Alfa has been B Corp certified since 2014.
Greenaumatic offers software and advice to generate clear ESG reports to help companies achieve their non-financial goals. The available technical skills and knowledge about sustainability ensure that customers have access to information about complex issues and / or when taking integrated decisions. In addition to being a data expert, Greenaumatic offers commercial, organizational and ESG knowledge to partners and direct customers.