Carbon accounting (otherwise known as greenhouse gas accounting) measures the environmental performance of a business so that targets can be set for, and reductions achieved in, its environmental impact. The factsheet concentrates on a simple form of carbon accounting that is suited to entities with turnovers up to, say, £7 million; this includes companies of all types, charities, partnerships and sole traders. The factsheet provides guidance on advising small businesses about setting up and operating carbon accounting, and on the associated tax advantages.