Going ‘Green’ Reduces Red Ink

One interesting aspect of this type of benefit, however, is that it may be overlooked, or at the very least underestimated, because of the way revenue from recycling is accounted. Many firms simply use these amounts to reduce paper costs, rather than accounting for them separately as recycling income. This can distort what is really happening and can confuse decision-makers. There is an old saying that it is hard to manage, or to fully understand, anything that you don’t measure and account for. So correctly accounting for the benefits, as well as the costs, of recycling and other “eco-friendly” activities is important.