Description of Program: Utilizing the 3-dimensional Color Accounting framework, the facilitator is able to take the fear and mystery out of accounting while placing physical accounts directly into the hands of your staff. Each participant gets to hold the debits and credits, decipher where to post transactions and visually grasp the value cycle of the business. After fourteen ‘classic’ business transactions, participants know where the numbers come from which allows the facilitator to rapidly dive into financial analysis.
Who Should Attend: All people working with business and personal financial information; people who want to understand how accounting works or progress to advanced accounting studies; and people seeking to improve their general business acumen for the purpose of general management, business ownership/entrepreneurship, sales, and consulting.
Pre-Requisites: No academic or professional experience is required to participate in this course. Actually, the less you know, the better.
MODULE 1 Setting the Scene (1 hour)
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. They quickly realize how much they need to pay attention and their need to be highly inquisitive.
- The role of accounting literacy underpinning financial and business success
- Establishing the learning outcomes; three essential competencies of Structure, Language and Movement
- Starting from scratch: What is accounting?
- History of accounting and role of Color 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
MODULE 2 Accounting for a Business Scenario (3-4 hours)
CORE! is not a game or simulation. Rather, 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 curriculum covers:
- The nature of a transaction
- Two effects for every transaction
- The Color 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; Break-even, Margins, EBITDA, and/or GAAP
MODULE 3 Application of Concepts (1-2 hours)
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
When & Where
Accounting Comes Alive
Accounting Comes Alive is an orgnization that is committed to financial literacy. With their patented interface, Color Accounting, learning and discussing the numbers has never been easier.