Significance

• This method of accounting is popular in nonprofit and government sectors where social and environmental responsibilities are generally viewed as more important than the financial bottom line.
  
  

Function

• "The primary reason for TBL reporting is to provide investors with the information they want in order to make decisions," according to Daniel Tschopp (see Reference 1). Therefore, organizations that use TBL accounting have an easier time receiving funding.
  
  

Features

• The social aspect of this accounting method stresses the importance of the fair treatment of employees through fair wages and a safe work environment (see Reference 1). An organization using TBL accounting is required to participate in sustainable environmental activities such as reducing harmful waste and conserving energy (see Reference 2).
  
  

Benefits

• Companies that implement TBL accounting can increase business because they appear more socially and environmentally responsible than their competitors. The correct use of TBL accounting reduces the likelihood that the company will end up on the front page of the newspaper because of unfair wages, the use of child labor, unsafe work conditions or its adverse environmental impact.
  
  

Considerations

• Some organizations have begun using the idea of quadruple bottom line reporting, which adds in the spiritual aspect of doing business.