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Accounting and Why It's Confusing

Most people seem to have issues with accounting because they have trouble understanding the "why". Every time I help someone, they always have this perplexed look on their face. When we discuss the Profit and Loss Statement (Income Statement), they don't understand why accounts are organized the way they are or the difference between Cost of Goods Sold and Expenses. Most people think accountants are just people who like math. Big myth! We are great with details and organizing data. If teachers, tutors and fellow accountants could explain the "how and why" of accounting, fewer people would have problems. 


I have learned that students are confused about the logic of accounting e.g. debits and credits, and rightly so because they do not see the reasoning for debits and credits until they fully understand the why? My method of teaching is to first explain the 'Financial Statements'. The reasons, the purpose, and how its being used by people who need to use it in the business world. I work from here backwards - they then seem to understand and get interested in the details. I have never understood accounting in the classroom - it may be because most of the Instructors have never been on a real job - they are Academics. Once that light goes on (with most Accountants) the room is never dark again.   
understanding the accounting 'language' and accounting 'jargon' is a real problem ...a student new to accounting listens as if the instructor is speaking a foreign language ... the job of the CPA professor is to translate ...
how and why ... let's begin with the Internal Revenue Code (IRC), US Code Title 26 ..


Stephanie G.

Accounting 101 and QuickBooks

10+ hours
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