Assessing the Need for Environmental Cost Accounting in Plastic Recycling Small and Medium Enterprises: A Case Study of Manado Recycle Hub, Manado City
Plastic recycling Small and Medium Enterprises (SMEs) play a significant role in reducing environmental pollution by recovering and reprocessing plastic waste. However, most SMEs still lack an adequate system for recording environmental costs, limiting their ability to evaluate environmental expenditures and support informed decision-making. This study aims to assess the need for environmental cost accounting in plastic recycling SMEs through a case study of Manado Recycle Hub, Manado City, Indonesia. A descriptive qualitative approach with a case study design was employed. Data were collected through structured interviews consisting of 30 questions, direct field observations, and an analysis of business documents. The data were analyzed using gap analysis to compare existing accounting practices with Green Accounting principles. The findings reveal that environmental expenditures, including water and electricity consumption, waste management, personal protective equipment, and transportation costs, are incurred regularly but are recorded as general operating expenses without specific classification. Although the business owner demonstrates strong awareness of the importance of environmental cost accounting, its implementation is constrained by limited accounting knowledge and the absence of a simple recording system. The identified needs include a Microsoft Excel-based accounting system, separate classification of environmental costs, environmental cost reporting, and a user-friendly recording procedure. These findings provide a foundation for developing a simple and practical environmental cost accounting system tailored to the characteristics and operational needs of plastic recycling SMEs