accountants must adapt to new value measures to remain relevant in a rapidly changing world.
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accounting arc
with byron patrick and donny shimamoto.
center for accounting transformation
accountants are often seen as guardians of financial records, working behind spreadsheets to balance books and ensure compliance. but bailey lenart, an entrepreneur based in new zealand, is breaking that mold. as the founder of world changing business and collective flow, lenart is redefining what it means to be an accountant by focusing on non-financial metrics—such as carbon emissions and biodiversity loss.
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in a conversation with donny shimamoto, cpa.citp, cgma, on the accounting arc podcast, lenart recounts her transformation from a conventional accountant to a trailblazer in esg (environmental, social, and governance) accounting. “i realized early in my career that i wanted to do more than just prepare financial statements,” she shared. “i wanted to make a real impact, and that led me to look beyond numbers.”
lenart’s career pivot began when she was introduced to xero, a cloud-based accounting software, while working at a mid-sized firm in new zealand. “that was my first glimpse into how technology could revolutionize accounting,” she recalled. it wasn’t long before lenart transitioned from traditional accounting into product management, where she thrived by helping other firms embrace digital transformation.
but the real turning point came when she discovered the concept of non-financial accounting. “businesses are more than profit-and-loss statements,” lenart explained. “we need to measure the full impact—on people, on the planet. that’s where non-financial accounting comes in.” her work at world changing business focuses on guiding accountants through this shift, helping them measure and report on things like emissions and sustainability.
“carbon accounting is a natural fit for accountants,” she said. “we’re already adept at tracking complex data. now, it’s about applying those skills to a broader set of metrics.”
lenart sees accountants playing a crucial role in the fight against climate change. “if we want to mitigate the worst effects of global warming, we need to know where we stand,” she emphasized. “and who better than accountants to provide that data?”
the shift to non-financial accounting is not without challenges. “there’s no roadmap,” lenart admits. “but just like we’ve evolved with technology, we can adapt to this new way of thinking.” she advises her peers to embrace curiosity and creativity, traits that she credits for her own success.
ultimately, lenart’s message to the accounting profession is clear: “success isn’t just about profits anymore. it’s about making a positive impact on the world.” she encourages young accountants to follow their joy, even if it means stepping off the traditional career ladder. “accounting can take you anywhere,” she said. “you just have to be willing to explore.”
top 10 takeaways:
- accounting isn’t limited to financial metrics; it can include environmental and social measures.
- lenart credits her success to pursuing what sparked her curiosity.
- cloud accounting software can streamline and revolutionize the accounting process.
- understanding how different elements of business interconnect can help you make better decisions.
- accountants can use their skills to track emissions and help reduce environmental impact.
- lenart believes work should bring joy and allow individuals to contribute their gifts.
- you can craft your role to fit your strengths and interests.
- accountants are well-positioned to help businesses adapt to non-financial performance metrics.
- lenart’s success in product management stemmed from collaborating across functional teams.
- if you’re doing what you love, work won’t feel like work.