Accounting for Islamic Social Enterprises: An Islamic Perspective

Abstract

Islam is a complete code of life which emphasizes on the social justice and welfare. As the traditional capitalist society failed to ensure an equitable society, the urgency of social enterprises cannot be overlooked. Again the proper record keeping of transactions of any organization is a must. It is given priority in Islam and its importance can be understood by several verses of the holy Quran as well from different hadiths. Again, the traditional accounting has some features conflicting with the Islamic principles of justice, equality and truthfulness. Thus, the study is an effort to propose an accounting framework for social enterprises. To develop an accounting structure for social enterprises, the existing accounting pattern of social enterprises has been critically evaluated under the light of Islamic Sharia’h and the conflicting ones have been replaced with the right ones from Islamic perspective.

Keywords: Social Justice, Social Enterprises, Islamic Accounting, Traditional Accounting