Authors: Brooke Fullenkamp, CPA & Tyler Rose; Cohen & Co (Ohio, USA - TIAG)
From competing on cost with traditional fossil fuel-based energy sources; to the challenges of regulation, permitting and licensing; to a vulnerable and complex global supply chain — renewable energy companies face numerous challenges in meeting sustainability priorities while also turning a profit. So why should the accounting aspect of renewable energy organizations be any easier? Unfortunately, it’s not.
The accounting infrastructure you have — or don’t have — can make or break your next big project. As your portfolio scales, so does the complexity of your financial reporting. By understanding six of the most common GAAP (generally accepted accounting principles) accounting challenges in renewable energy, you can avoid costly missteps and build a financial reporting foundation that supports long-term success.
Below we’ve outlined six of the most common and complex accounting challenges for those in the renewable energy development sector. Proactively addressing these issues now can prevent costly surprises later.
