Accounting Knowledge and Active Learning

Accounting is the language of business.

For small business owners, understanding bookkeeping concepts of debits and credits, preparing financial statements and working with ratios are a baseline of knowledge to carry forward in a successful ,and sustainable, business operation. A great place to start learning these concepts is school.

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This summer, I have the privilege of teaching an introductory accounting course to college entrepreneur studies students, and here’s what I’m learning, broadly; this learning can be further sub-divided into 3 parts:

Basic Understanding

1. Modern accounting, stemming from the medieval double-entry bookkeeping system popularized by Luca Pacioli in the mid to late fifteenth century Italy, is a tried and true method of properly keeping track of, and managing profits and loss, inventory and accounts, and ultimately, wealth.
2. For learners, the system can be counter intuitive. Understanding the basic accounting equation of what a business has, and, who has a claim against it, is a foundation upon which all other accounting and business learning, writ large, is based.
3. As with any learning, having an assignment plan in place, a study guide if you will, will help with keeping on top of the new information. This is a basic truism of all learning, be it textbook or otherwise.

Internalizing Learning

1. One of the precepts of medieval double-entry accounting was learning through practice. Learning the basic concepts is greatly facilitated by having practice lessons or exercises that tie directly into the course material. Educational technology, student-versions of commercial accounting software, or otherwise, can help immeasurably with concept understanding.
2. By making the formative assessments of the class learning count towards course grades, a system is put in place which rewards effort in an objective manner.
3. This evaluation, however, is no replacement for teaching in an interactive way. Numerical learning (though, not math, per se) can be abstract in the main. It is the instructor’s responsibility to give the concepts practical relevancy.

Knowledge Creation

1. Business knowledge is a combination of hands-on practical, and, from an academic perspective, especially as relates to an introductory accounting course, iterative practice based on reading. Applying this knowledge in future business dealings should be the goal.
2. Learning should be collaborative, with the instructor and learners growing their knowledge together — this makes the experience both more productive and enjoyable. Examples, case studies, and speaking one-on-one or in small study groups, really helps to develop and grow the knowledge.
3. A focus on outcomes, both for the class and for future course work should be mentioned and explored. Applying the concepts to other course work can be further explored; the learning can, and should be applied to thinking beyond course work. Can the basic system be improved? What are current trends and future direction? Are there new areas that can be explored? These questions are hallmarks or future knowledge creation and interdisciplinary learning.

I’m excited to move into the final phase of the course work, where learners move beyond basic concepts and explore the larger context of accounting for business. Personally, continued learning through my own repurposed and existing knowledge, and knowledge transfer to learners, is both incredibly interesting and enriching. This fact adds to my excitement.