White Belt
White Belt
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Welcome to your White Belt Training
Welcome to your White Belt Training
For reasons known to you and only you, you have landed on this web page. The most important things to learn at the beginning of any pursuit are the frameworks for flow and context. The actual mechanics of doing work may or may not be useful initially.
In this case, we feel it's best to learn about Accounting Literacy Curriculum in relation to a larger framework first. Thus you will get no mechanics right away. This provides the cognitive models you will need to optimize the use of your time and energy.
At the bottom of this page are 10 self-study questions. A 90% or better and you've earned your White Belt.
Where or how does "Accounting" and "Accounting Literacy" Fit into a larger picture of the world?
Where or how does "Accounting" and "Accounting Literacy" Fit into a larger picture of the world?
When people attempt to learn about Accounting, if they try to do it without understanding of where or how it relates to finance and the larger system that is money, they may have improper expectations of what they will get from their accounting education.
Below is a simple cognitive model to help separate key concepts.
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Money Creation and In Circulation Management
Accounting is not Finance. Finance is not Accounting. Neither is related the creation of Money and in Circulation Management.
How money is created is a totally separate topic from how it is accounted for and used after it has been created.
Accounting and Finance use basic math to count money and account for money, but neither study should bleed directly into conversations about who creates money or how it is created until the basics of both of these are understood.
That's not to say bleed over doesn't happen, but ideally it wouldn't have been a thought until the useful and functional reasons to have money and ways to account for it were understood.
A study of Accounting and Finance will position you to have conversations about the creation and management of money with credibility that many who are trying to engage in those conversations now are lacking.
Accounting Foundations are made up of 1) Sales System Education and 2) Bookkeeping System education.
1) Sales System education will include education related to receiving money in exchange for goods, services or your time as an employee. Sales Systems all fill similar needs, but they can vary widely given individual and business needs.
Sales System education includes an introduction to products, services, and packages made up of a combination of products and/or services.
Sales System education included information about methods of payment and/or money transfer systems that may be used to interact.
Sales System education includes exposure to three ways to think about Sales Systems. We use "Past", "Present", and "Future" as the basis for sales transaction and sales system delineation.
Sales System education includes exposure to the difference between sales tracking and the collection of money that one might expect a sales system to report. When there is a difference between a sales report and money collected , as is the case when people don't pay for products or services at the thse same time they get them, the concept of "production tracking" must be included in sales system design to create reporting that is relevant. Often times, production tracking can be more important than sales tracking, once you understand some nuance that apply to everyone, not just those who produce goods.
2) Bookkeeping System education is universal. All Bookkeeping for all people and businesses starts out identical. This comes as a surprise to many. and it's often a surprise because they include Sales Systems as part of the Bookkeeping Process when in fact there is a formal and informal use of that word "bookkeeping" that needs to be delineated to help with understanding.
All Bookkeeping leads to two foundational reports, and those are the place everyone needs to start.
HOWEVER, you need to start with those reports by CHANGING THEIR NAMES to help you make sense of them batter.
Summary Concept: Sales Systems can vary widely but summary Sales System reporting and production reporting typically have some things in common. Bookkeeping systems are all based on the same model no matter how large or small the need is. .
Why should Accounting Education be taught BEFORE the glimpse at Finance is given?
Why should Accounting Education be taught BEFORE the glimpse at Finance is given?
Accounting Foundations , consisting of Sales System and Bookkeeping System Education should be taught BEFORE Financial Education.
There is more "magic" in financial education. Teaching the magic parts first, can send people into a dream state. If that transpires before they are grounded enough to know how to pull out when needed, accidents come with major consequences.
When Commercial Education is done foul, and by an insincere teacher, the teacher will insert a glimpse of borrowing and lending, which is a financial activity, and declare it to be "accounting related"...
They will teach an aspiring, young student they can borrow $100,000 for education
They will tell them that via the magic of finance, that $100,000 will only cost them $400 a month in the future
They will then tell them they can get a $40,000 a year job right out of college
With those three suggestions, all the aspirant can see is $40,000 coming in vs $400 going out.
An aspirant with no Sales System and Bookkeeping education first will ignore the fact that the time frames for comparison are inconsistent (40,000 is per year and $400 is per month).
It's also simply impossible for an aspiring commercial player to imagine a situation in which $400 could ever be a burden for a $40,000 annual opportunity.
If any aspirant is to be introduced to finance first, it should be done just as it was done here, and that is by talking about the magic of finance and introduce the misleading, confusing, and energetically dangerous concepts first.
An Education that starts with Sales Systems and Bookkeeping Systems can be used to show how $40,000, $100,000 or even $200,000 per year in money flowing in can result in nothing left over at the end to make a "measly" $400 monthly loan payment.
As sobering as this may sound, it is where a proper teacher starts a proper education.
Foundational Accounting facts became known to John D. Rockefeller before he took out a single loan. He then explored commerce like a mad man, but he was given the education in the order everyone deserves to decide what they are going to do with it.
Foundational Accounting Facts were known for 1000's of years by adolescents before they became introduced to the world of Finance and Fun Funny Money Magic, as it was always supposed to be.
It's only been since the 1990s, and arguably the early 2000's when this simple process started to invert to a point of such extreme concern.
What can come from a properly oriented education?
What can come from a properly oriented education?
While this is a "sobering" way to have to learn about this later in life, for those who learn this at a young age, without fully realizing it's true relevance or value it's just another day in the classroom of life, and they are then prepared to produce something far different for everyone.
Introduction of Accounting Education to the youth in a fun and entertaining way, can force changes in the Education System that are profound. Such changes are long overdue and it sure seems many omissions must be addressed sooner rather than later, for one reason or another.
It's believed if those empowered with this education at a younger age take the "numbers to heart", which do currently show that show that making ends meet is harder now than it's been in modern history, they can push their way onto the Political and Banking Scene with a passion that knows no bounds.
In a properly ordered education, there can eventually be dialogue about "the magic source of money" and that dialogue needn't be about how evil it is. It certainly can be about that and it certainly can give rise to it, but that is only one side of a two sided coin.
There is also a chance it can be about something else.
However, for it to be about something other than evil, more people have to be educated about the construct that is money, and the faith and trust based system that was required to launch it to start with.
White Belt Test
White Belt Test
Any person at any age who was able to read the information above, or hear others read it, just learned a lot. It may not seem like much, but it was and is the foundation on which all Accounting, Finance and Money Creation conversations must build from.
The questions below will help you see what you were able to gain and retain from the information above. If you get a 90% or higher, you have earned your White Belt.
What are the two subsystems you will need to learn about for foundational Accounting Literacy?
Under which of the two subsystems for Accounting Literacy will you study sales payment methods?
Should Finance be considered part and parcel of Accounting or visa versa?
Do people who seek to provide loans have a tenancy to to encourage borrowing that may not be financially appropriate?
Does everyone believe money is the root of all evil?
Has money created opportunities that were unavailable to the indigenous people of the world?
Has money been used to suppress secrets of indigenous people that may have been beneficial to those who viewed them as less civilized?
Is it easy in modern times for the broader population to relate to the term, "fun funny money"?
Is it difficult in modern times for the broader population to imagine how earning money and playing with money can be fun, given the current problems with money creation and management globally?
Are you open to the idea that there may in fact be a way to use money to change the way we view money in a positive way?
Believe it or not, the framework you now have for learning about Accounting Literacy, Financial Literacy, and Money Management now exceeds that which most who call themselves Professional Accountants ever got.
If you got a 90% or above, Congratulations on your White Belt. You earned it !
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