AN OVERVIEW:
A vital role of accounting is observed in incorporating sustainable development goals with business strategies and practices. The accounting sector provides the necessary tools to ensure financial transparency, efficiency, and risk management. With the help of these tools accounting and finance sectors are adopting green accounting practices. These practices and following the SDG goals ensure environmental sustainability, economic growth, social equality, and numerous other benefits. To acquire in-depth knowledge about the contribution of accounting in achieving SDG goals read the blog ahead.
FINANCIAL TRANSPARENCY AND ACCOUNTABILITY:
Sustainable Development Goals highly emphasize the importance of ‘peace, justice, and strong institutions’, with the help of an accounting system offering transparency in their financial reporting and statements this goal can be met. It makes sure that the funds are allocated where intended, and reduces financial mismanagement and fraudulent activities in Zimbabwe where corruption is one of the most highlighted issues.
RESOURCE ALLOCATION FOR DEVELOPMENT PROJECTS:
As the Zimbabwean region is increasingly developing in areas like healthcare, roads, energy, etc, to execute these infrastructure programs a proper check and balance of resource allocation, and budget management is required. Accounting plays an important role in this process; it deals with the financial as well as resource management in a way that the investment aligns with the Sustainable development goals.
PROMOTING FINANCIAL INCLUSION:
The role of accounting also includes educating people about financial products and services and incorporating them by tracking financial activities. Financial literacy in this area and the availability of financial products and services to underprivileged populations such as access to credit and savings enables the accounting industry to manage two SDG goals ‘No poverty’ and ‘Decent work and economic growth’. Promoting financial inclusion can contribute to reducing poverty, stimulating economic growth, empowering startups, etc.
SUSTAINABLE BUSINESS PRACTICES:
The agriculture sector and natural resources of Zimbabwe demand careful management to ensure sustainability. However, Sustainable business practices can be incorporated with the help of environmental accounting and sustainable reporting. The accounting sector can align a company’s business practices with SDG goals ensuring responsible consumption and production.
DATA FOR POLICY FORMULATION AND IMPLEMENTATION:
Data collected in the form of financial records in the accounting sector are a piece of defining information to structure government policy, budgeting, and resource management for the education and healthcare sectors, to ensure the resources are allocated where they are intended. Therefore, accuracy and transparency in accounting data are crucial for social benefits such as reducing inequalities and offering quality education.
PROMOTING CORPORATE SOCIAL RESPONSIBILITY:
As over the time we have witnessed an increase in the trend of green accounting and it is observed that society is being more responsible towards sustainability, many companies in Zimbabwe as well as globally are now adopting corporate social responsibility. These companies measure the social and environmental impacts of their operations, promote sustainable operations, and incorporate Sustainable development goals. For example: reduction of carbon footprints, climate actions, etc.
CONCLUSION:
In Zimbabwe, Accounting plays a vital role in incorporating Sustainable Development Goals with business operations to maximize profitability while considering environmental, social and economic impacts. Accountants adopt green or environmental accounting and sustainable reporting which enables the business to track the efforts and impact of their business practices on the environment and society. These reports and financial statements are really helpful in aligning their strategies with SDGs. Apart from that, with the help of accounting companies can ensure corporate social responsibility, financial inclusion, efficient resource allocation, etc.
FREQUENTLY ASKED QUESTIONS:
Q1: What are the Sustainable Development Goals (SDGs)?
Answer: Sustainable Development goals were introduced by the United Nations in 2015, these are a mix of 17 sets of goals aiming to address social, environmental, and economic injustice, issues, and degradation. By incorporating these goals with business practices we can reduce poverty, climate change, environmental decline, and inequality.
Q2: Why is financial transparency important for SDGs in Zimbabwe?
Answer: Corruption and mismanagement of resources are the particular economic challenges faced in Zimbabwe. In such a scenario, the accounting and financial sectors must showcase transparency and accuracy through their work. Transparent and Accurate financial statements and reports ensure effective resource allocation, sustainable development, good governance, etc.
Q3: How does accounting contribute to achieving SDGs in Zimbabwe?
Answer: The role of accounting is significant in achieving SDGs in Zimbabwe, through transparent, efficient, and accurate financial data. With the help of sustainable accounting, businesses can promote financial inclusion, effective resource allocation, reduction of carbon footprints, etc.
