One of the starting points for social accounting was a 1981 publication by Beechwood College in Leeds of a booklet by Freer Spreckley entitled Social Audit – A Management Tool for Co-operative Working. The 4th edition was published in 2008. This publication is also noted as the first recorded use of the term “social enterprise”.
The audit sought to “measure social performance in terms of benefit or loss to the working members, the local community and the wider community”.
The idea of an audit was a parallel to the financial aspects, in that it was a confirmation that the system of activity and its measurement was working well.
But as with the financial side, an audit itself was not the objective, although it became the focus for some. An audit verifies that the accounts are correct and reflect the activity undertaken. The accounting is the measurement of the activity. The goal is to maximise the efficiency and efficacy of the organisation, that the work of the organisation it is done well with the least amount of resources, and that it has the desired impact.