Accounting for Social Enterprises
The practicalities of accounting for social enterprises are going to be dependent on the legal structure and status of your social enterprise. Are you a 501(c)(3) non profit? are you a B-corp? are you an LLC who is choosing to operate as an enterprise with a social enterprise social impact model?
Find an accounting professional who is familiar with the type of legal structure you are using, and preferably the industry within which you operate your social enterprise.
A specialist form of accounting, known as social accounting, was specifically designed to be applied to social enterprises. According to Gray, Owen and Maunders, Social Accounting is the process of communicating the social and environmental effects of organizations’ economic actions to particular interest groups within society and to society at large (p IX, Corporate Social Reporting: Accounting and accountability (Hemel Hempstead: Prentice Hall, 1987).
An excellent resource for developing financial intelligence for social enterprises is this one.
We can help you by referring you to accounting professionals with the kind of experience you need.
Anna Blanch Rabe, founder of Anna Blanch Rabe & Associates, has been working with Social Enterprises, socially-responsible businesses, educational institutions, and non-profit organizations since 2006 to develop and effectively execute strategic, digital, and narrative initiatives to gain exposure, develop community capacity, attract talent, and reach new customers. Anna is an Australian-born speaker, writer and advocate. Connect with Anna on Instagram, facebook page, & Twitter.