Accounting is a language, and a focus on plain language is one of the features that sets Color Accounting™ apart from regular accounting classes. Color Accounting™ has identified three fundamental keys to learning accounting. Without all three keys, you won’t truly ‘get’ accounting. And with the three keys, learning accounting becomes EASY. We call them the Aspects of Learning: (1) Structure, (2) Language, and (3) Movement.
When you grasp the three keys, the results are almost unbelievable. True, deep, powerful and rapid understanding of accounting… and incredibly quickly.
But it doesn’t end there. Not only does Color Accounting™ deliver a totally robust understanding of accounting, but a unique model called the Color Accounting ‘Value Cycle’ has learners grasp how the business itself works, with greater clarity. Learners gain an unforgettable mental model of how to improve profitability, and a permanent ability to make more informed and better decisions. We have clients who’ve told us it has changed the whole way they see their business.
Regular accounting programs explain accounting mechanically, and mathematically, like an equation. And they rely on the directions left and right to distinguish key concepts (you may have heard of ‘T-accounts’). But many people are scared by math… and humans don’t process sides that well. It takes a child until about 8 years old to stop mixing up ‘E’ & ‘3’ and ‘d’ & ‘b’. But a toddler can tell colors apart. Which explains why Color Accounting™ is so instinctive and simple, even for adults! Color Accounting™ explains accounting graphically, using 2-dimensional diagrams and three-dimensional devices. Accounting unfolds as a simple system before your very eyes.
In a 3-hour seminar to a 3-day workshop, you use all your primary learning senses. A Color Accounting™ workshop is filled with laughter, engagement and very serious learning. Some of the world’s largest companies are using Color Accounting™ to train hundreds of their staff. In academia schools and colleges are using Color Accounting™ to augment their traditional curricula.
For more than a decade, educational organization, Color Accounting International has developed and refined the patented Color Accounting™ system. Much like the Macintosh and Windows graphical interfaces made using computers much easier, Color Accounting™ uses a graphic called the BaSIS Framework™ to make accounting easier. The graphical system has proved itself time and again with tens of thousands of students in live classroom situations at leading universities, business schools, banks, law firms, start-up incubators and companies around the world. And now it’s in an online course too.
Color Accounting™ is distributed by a passionate community of licensed Solution Providers, Trainers, and Educators. Each is a pioneer with a conviction that the new financial literacy sets people free from fear, to achieve their dreams.
Module One: Setting the Scene
The first module prepares the learners for an out-of-the-ordinary learning journey. For some this ‘warm-up’ module can be the most important, because it uncovers mental blockages and gets participants to give themselves ‘permission to get it’. For example, learners begin to see that what appear to be simple questions are examined very deeply.
- The role of accounting literacy underpinning financial and business success
- Establishing the learning outcomes, including the three essential competencies of Structure, Language and Movement
- Starting from scratch: What is accounting?
- History of accounting and role of Colour Accounting™
- Preparing the learners mental and emotional state, including the need for ‘unlearning’
- Central role of assets in a business
- The funding of assets, and assets as a Use of Funds
- Introduction of the accounting equation
- Relationship between the Balance Sheet and Income Statement – ‘The Value Cycle’
Module Two: Business Scenarios
Colour Accounting™ is not a game or simulation. It draws on a realistic business scenario, which the students learn to, literally, account for. By recording a series of 14 carefully ordered transactions – each designed to teach a specific concept – learners develop and use accounting as a business framework.
- The nature of a transaction
- Two effects for every transaction
- The Colour Accounting™ Framework
- Distinguishing the general ledger from the general journal
- ‘ALEXI’, the five fundamental elements of every business story
- Movement: up/up, down/down and up/down
- Reporting: the balance sheet and income statement and the structural connection between the two
- More terminology: Precise meaning of terms such as equity, margins, depreciation, double entry, debit/credit, duality, and accrual accounting
- Other concepts are introduced as necessary, such as:
- Asset valuation and income recognition
Module Three: Case Study
The workshop culminates in a case study that has the learners realize how far they have come and what they are capable of. A carefully constructed business case study of a struggling but successful business brings the learning together. The students articulate the essential business narrative that the balance sheet and income statement tell. They then complete a detailed financial analysis of the company addressing business issues such as:
- Changes in borrowing
- Cash flow and cash flow statements
- Financial effects of marketing strategy
- Various profit margins and what they tell
Note: The case study can be substituted for the financial statements of the client.
The workshop is always tailored to address relevant issues such as:
- The statement of changes in shareholders equity
- Management Discussion and Analysis document
- Ratios, including Performance, Leverage, Liquidity and management measures