Spend-based carbon accounting is a pivotal method for estimating a company's greenhouse gas emissions. It assesses emissions by applying average emission factors to the expenditures made in different categories of goods and services. The accuracy of this method depends significantly on the thoroughness of the financial accounting file preparation.

Start by navigating to Coolset. Go to the 'Expenses' section and select 'Manage'. Here, you will find the option to upload your financial data. Click on 'upload' to be able to view the export template. This template is designed to simplify the process and ensure you capture all necessary data.

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The next step involves your accounting software. Access it and download the accounting file for the specific year you are analyzing. This file will serve as the base for your spend-based carbon accounting analysis.
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In your accounting file, focus on ledgers related to purchases of goods and services, as these are key to spend-based carbon accounting. If in doubt about a particular ledger, it's advisable to keep it in the sheet for now.

Read more about what to include and exclude in your accounting file.

Your document must include the mandatory fields: date, ledger, description, and net costs. Additionally, adding vendor information is highly recommended for a more detailed analysis. Use the downloaded template to ensure all fields are correctly filled. Once completed, save the document in CSV format.
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With your file prepared, go to https://app.coolset.com/expenses/linked-accounting and click 'upload'. Drop your file into the designated area. Click on 'continue' to proceed to the next steps.
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Confirm that your sheet includes headers. This step is crucial for the proper categorization and analysis of your data.

Drag your columns to the right position so the headers are matching. Click upload to proceed.

Once your data is uploaded you have the option to start reviewing your ledgers. This step acts as a final review to ensure only relevant ledgers are selected. It is beneficial to perform this step alongside your Coolset representative for accuracy.

Begin by verifying the journals you wish to incorporate into your analysis. It's important to note that information from your journal is not required to conduct a precise analysis. Once confirmed, click 'Continue' to proceed with selecting your ledgers.

Please drag and position the ledgers to the right within the interface to mark them for exclusion. If you're uncertain about which ledgers to exclude, there's no need to worry—this action is reversible. To finalize this step, click the 'Run Analysis' button.
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Once the review process is complete, your role in the process is done. Coolset will now classify your transactions for spend-based carbon accounting.