As we prepare to reset our calendars and rush headlong into 2017, I thought this an appropriate time to discuss the power of zero.

Zero came to us from our early trading partners in Arabia. And it's power was so immense that Arabic Numerals displaced Roman Numerals in every facet of European society. 

By the 13th Century, Italian accountants knew their books had balanced when the difference between them equaled zero and, four hundred years later, Sir Isaac Newton found the concept indispensable when cobbling together the basic laws of Physics.

Here at Color Accounting we use Zero as our assumed instructional starting point. Whether we are teaching native farmers in Zambia or investment bankers on Wall Street our approach is the same.

We start with a tabula rasa and begin teaching utterly fundamental concepts like point of view and value-creating and value-destroying activities. Advanced concepts like financial statements come later.

Farmers and bankers around the world seem to agree - this approach works. Almost all come away with a much better insight into accounting and its role in every life.

Wishing you all the Power of Zero in 2017, Peter

In this holiday season we would like to take a moment to do the most important accounting task of all: counting the blessings we all enjoy and share.

Among the greatest of those blessings are the wonderful people we have the privilege to meet and work with.

So thank you for enriching our lives.

We look forward to your energy and excitement in the new year.

Happy Holidays from Peter and the global family of Color Accounting educators.

​Have you ever purchased a gift card at Starbucks? Millions of people around the world have.

So many in fact that Starbucks now owes its customers over $1 Billion (US) in espressos, frappuccinos and, of course Pumpkin Spice Lattes. And the number is growing daily.
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While that anecdote may seem a little whimsical, as Everett Dirksen once said, "A billion here and a billion there and pretty soon you're talking about real money." How does Starbucks account for that enormous figure?

​As far as I know, no one from their Accounting Department has attended one of our workshops - yet! 

But they know–as we teach–that this enormous figure on the balance sheet shows up as a liability called,  ironically, Deferred Revenue, with a balancing figure to Cash in Assets being the money received.

Actual revenue is not recognized until the card holder purchases something.  Which gives us another good example where revenue most certainly does not mean monies received!

What's that you say? Double-shot vanilla half-caf espresso for Peter? Yes, that's mine.

Regards, Peter

I cherish the "light bulb moments" when an expression of relief and joy spreads across the face of a student as they suddenly grasp a concept that had eluded them for years.

Which is why I was utterly charmed to see a Facebook post from a student who attended a workshop I recently led in Dubai.
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After attending our one-day workshop (produced by our partner Mike Hoff Consulting), Ramzi Ghurani was so excited by what he learned he went straight home and shared with his daughter Gianna - and then posted these photos and text to Facebook:

"The best part about it was I got to share this knowledge with Gianna. She learned about assets, liabilities, cost of goods, sales and of course profit. She designed her first mini business plan (lemonade stand) and the profit forecast per cup!! It was awesome, and this is the enriching part of life."

Enriching indeed Ramzi, enriching indeed. Thank you so much for sharing.

Regards, Peter