Banana Accounting is an accounting software inspired by spreadsheets. It presents itself to the user via tables that refer to the ledger and the journal. It lends itself very well as a demonstration of how an accounting software works.
As with the car, once you learn how one software works, switching to other brands is made easier.
The structure of data is apparent immediately and entirely reflects the accounting structure. Accounting entries are made in the Transactions table. The Accounts table displays the accounts and the arrangement of the Balance Sheet and Income Statement. The program also displays the balances next to each account and group, allowing you thus to examine the situations of the accounts of the Financial Statements, of the Income Statement and of the operating result in the Accounts table.
During the introduction of accounting courses, the teacher can display screens of the Accounts table and the Transactions table in order to present the actual functioning of an accounting program in reality. It can be shown how a chart of accounts of a real company is structured, with groups and sub-groups and how it is presented and laid out.
Preparation of the material to be presented
The teacher installs Banana Accounting on his computer and prepares an accounting file. Inserts a chart of accounts to be presented to students with some sample registrations.
Depending upon the level of preparation of students, a Chart of Accounts with a simple or more complex structure is selected.
The teacher may wish to prepare multiple accounting files, one with a simple Chart of Accounts, with only Assets, Liabilities, Costs and Revenues to be shown at the beginning. More complex account plans may possibly be presented subsequently, to also include the VAT or multi-currency option, cost or profit centers and financial planning.
Presentation of program with screens
During the lesson he will show screenshots taken from the program, or project the program as it is used.
- Open the accounting file.
- Show basic accounting data: Company name, accounting period and currency.
- Show the Chart of Accounts and explain:
- The accounts, number and description.
- The opening balances.
- The current balance.
- Show the Transactions table.
- Explain the different columns, Date, Document, Description, Debit Account, Credit Account and Amount.
- Show examples of recordings, both simple (Debit and credit) or complex on multiple lines.
- Please note that in the info window you can see the amount actually registered on each account.
- Return to the Accounts table:
- Show the groupings of assets, liabilities, costs and revenues and the result for the year.
- Explain that accounting programs store negative amounts in credit. The formula Debit = Credit, becomes Debit + (-Credit) = 0 in accounting programs
- Present the account cards.
- The different columns.
- The progressive balance.
- Present the Balance Sheet and Profit and Loss Accounts (Enhanced Financial Statements).
Through this simple presentation, the student will have an idea of how an accounting program works and has the opportunity to see real financial statements and income statements. He will see the transition from the preparation of the Chart of Accounts, to the insertion of the Transactions and the presentation of the results.