Are you a student or business professional that is currently struggling to understand all things accounting? Do you believe it’s too difficult to get a grasp on? Well what if we told you that it is not a difficult subject, more so a poorly taught subject? Here we detail an easy way to learn accounting – through the BingBong ACCq Simulator.
Easy Way to Learn Accounting – Overview
It seems that the traditional methods of textbooks, whiteboards, and T-accounts, although accurate, can lead to confusion and disinterest. This in turn leads to the opinion that accounting is unattractive, unappealing and dare we say, boring!
Therefore, we wanted to reimagine, re-engineer and reinvent the way the subject can be taught and change the way of thinking. We wanted to find an easier solution for students and business owners alike, to use a right-brain approach to a left-brain subject.
Billy O’Connor, founder of bingbong.ie, created the ACCq simulator to eliminate rote learning and instead focus on the ‘WHY’ and ‘HOW’, not just the ‘WHAT’.
What is the ACCq Simulator?
ACCq is our Accounting Color Canvas using the power of the quadrant. It is a colorful, visual, interactive tool which allows you to truly understand business finance and become brilliant on the basics.
The tool is made up of four colored quadrants and each colored quadrant represents a type of account. Although they are separate quadrants, all four elements are interconnected and cannot be looked at in isolation.
A Deeper Look
Let’s take a look at the canvas:
The blue quadrant represents expenses. Expenses refers to purchases, anything that is paid out of the business in order to be able to trade. Examples of expenses are wages, electricity, supplies, rent, taxes on profit etc.
The red quadrant represents sales. This is the opposite to the blue quadrant. Sales refers to money that comes into a business through trading. Examples of money that can appear in this red box are rental income, income from a cash sale, fees, commission.
Money can also come into a business from funding. This is shown in the yellow quadrant, which represents liabilities/equity. This box includes non-trading inflow of monies such as a director’s loan, a loan from a bank, money from investors. The inflow of monies shown in the yellow quadrant can come from an internal or an external source.
The green quadrant is where our money ends up. It shows us the things we own, which can be referred to as assets. We can have current assets like cash or monies owed by customers or fixed assets. Examples of fixed assets would be equipment, vehicles and furniture. Any tangible asset that lasts more than one year is usually treated as a fixed asset.
Together the red and the blue quadrant make up the Profit & Loss Account/Statement. The green and the yellow quadrant make up the Balance Sheet. These two statements can be seen on the right-hand side of the canvas.
Additional Tools Included in the Simulator
Below these four quadrants is a see-saw (which you can see in the image below). In order for this see-saw to be balanced, the transactions need to be balanced. There are two sides, equal in size to every transaction and if this rule is not followed then the see-saw will not balance.
There has to be a “bing” and a “bong” to every transaction, hence our name, BingBong!
For example, +10 on one side is balanced with +10 on the other side.
We will later show that +10 on one side can also be balanced by +4 and +6 on the other side.
Or wait for it…minus 10 on one side and +10 on the same side will also achieve equilibrium!
Easy Way to Learn Accounting – Summary
We can now confidently say that our visual, colorful and interactive solution is a game-changer that truly brings the concepts of accounting to life. Learners not only tell us they “love it” but they understand it straight away! The ACCq Simulator is an easy way to learn accounting – but it also makes it fun.
If you would be interested in signing up for a FREE explainer video or want more information, check out our website here!
For more articles like this, be sure to check out the accounting and CPA section of our site.
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