This course gives bookkeepers and small business finance staff a step-by-step, practical understanding of the Income Statement (Profit & Loss)—how it is built, how to record and classify transactions correctly, and how to use the results to support decision-making and compliance. You will learn the structure of a professional Income Statement, how revenue and costs are recognised, how expenses and tax are handled, and how to analyse performance using ratios—supported by realistic examples, reporting checklists, and hands-on case studies.
TOPICS DISCUSSED:
Module 1 – Introduction and Basic Concepts
Income Statement vs Other Financial Statements
Importance of Income Statement
Key users of the Income Statement
Basic Accounting Principles Relevant to the Income Statement
Components of the Income Statement
Practical Examples for Bookkeepers in South Africa
Common Errors to Avoid
Annexure A
Module 2 – Revenue and Sales Recognition
Module 3 – Cost of Sales and Gross Profit
Module 4 – Operating Expenses and Net Profit
Module 5 – Taxation and Profit after Tax (PAT)
Module 6 – Practical Income Statement Analysis
Module 7 – Reporting and Compliance
Module 8 – Practical Exercises and Case Studies
Module 9 – Income Statement Ratio Analysis
Annexures Included:
Annexure A – Full Workbook demonstration all calculations and scenarios
Annexure B – Full Management Accounts for 2025 tax year
Annexure C – Full Management Accounts for 2026 tax year
