We frequently emphasize what Revenue is NOT in these weekly messages. Today I would like to define what Revenue (or Sales) actually IS.

Revenue is how we account for the activities the business engages in which create value. Revenue is the activity itself, not the money which will eventually come from it.

Of the five types of accounts we all work with every day (Revenue, Expenses, Assets, Liabilities and Equity) Revenue and Expenses are the only ones that are activities. And Revenue is the only Value Creating Activity.

And, while generating Revenue creates value, it may not directly put cash in the bank. It generally only creates the promise that some cash may appear in our bank account at some later date.

The difference between those two events - and the amount of time which separates them - causes more disruption within individual businesses than any other misconception we deal with.

Don't get me wrong. I strongly encourage you to generate as much revenue as you can - within the constraints of your cash flow!

Warm Regards, Peter

The Saudi Stock Exchange, or Tadawul, is the Kingdom's only stock exchange and is supervised by the Capital Market Authority.

Late last year we were very excited to support our local partner Strategic Gears in running five workshops at the exchange to show how the new accounting literacy supports investor education.

Music, as the language of our human spirit, is readily understood and engaged by listeners. Accounting on the other hand, as the international language of business, can confuse and mystify even experienced traders.

Yet with color, diagrams and a focus on simplicity, accounting concepts can be taught easily in any tongue. Working in an exotic culture and making new friends is a pleasure that Color Accounting workshop leaders from all over the world share.

I’m definitely looking forward to being back to enjoy Middle Eastern hospitality.

Warm Regards, Peter

Color Accounting's recent growth in the US meant that co-founder Mark Robilliard was urgently needed Stateside.

So, in 2016, he moved from the idyllic seaside town of Noosa, Queensland to the heart of Wisconsin. Mark, his wife and daughter are now installed near Milwaukee.

Now enjoying his first Wisconsin winter, Mark would like to dispute the assertion made in the 1965 Trade Winds song - Milwaukee is NOT a lonely town, even though he's the only surfer boy around.

With average January daytime high temperatures below freezing at his new locale, we can forgive Mark the occasional bout of homesickness as we congratulate his commitment to Accounting Literacy in America!

Anyone fancy joining Mark and me for a bout of ice fishing next time I'm in Milwaukee?

Warm Regards, Peter