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The Color Accounting Framework™
At the heart of Color Accounting is the Color Accounting Framework™. The patented Framework is a holistic view of an entity's balance sheet and income statement. By combining these two reports into a singular model, the essential workings of any business are revealed.
A magical communication effect of the diagram is that the confusion arising from the double-entry (duality) nature of accounting disappears. The two dimensional picture of business creates 'pointability'. You can now point at what you are talking about. This simple fact means that when you are discussing something that happens in a business, no longer will (for example) your colleague be thinking cash when you are saying income. As two quite separate concepts which don't always move in tandem, cash and income are often collapsed into one concept, sometimes with drastic consequences for a business. The Color Accounting Framework makes it easy to see that they are quite different things.
Sometimes other training suppliers use color to dress things up. Color Accounting is different because it uses color logically and strategically to convey specific meaning. This framework is so powerful, we've even patented it.
It takes two to four hours to understand the Color Accounting Framework in a classroom setting - to achieve your core level of financial literacy. But you want to apply that financial literacy so you can smoothly move on to advanced financial concepts within your own business environment. For example, the Return On Assets ratio or the Leverage ratio are much easier to understand when you can see exactly what is being compared to what.
As you will see on the next pages in this menu section, in our training events we further extend the Color Accounting Framework to a three-dimensional fully hands-on model that is truly unique in the world of financial and business acumen training.
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