SME Financing in South Africa: A Guide for Non-Financial Managers

How to interpret and present an income statement Module

About the module: The income statement shows a businesss expense, income, gains, and losses, which can be put into a mathematical equation to arrive at the net profit or loss for that time period. The income statement information helps business managers make timely decisions to make sure that your business is on a good financial footing.

Purpose of the module: Be able to prepare and analyse a business revenue, expenses, profit, and losses over a specific time period. Produce an income statement that provides insights into a businesss operations, management efficiency, underperforming sectors, and performance relative to industry peers.

Rational of the module: An income statement assists business owners in determining whether they can generate profit by increasing revenues, decreasing costs, or both. It also demonstrates the effectiveness of the strategies that the business established at the start of a fiscal period.

The above mentioned module is one of seven modules in the skills programme titled: How to manage business finances . How to manage business finances - is one of ten skill programmes available in our Entrepreneurship Master Programme .

Skills programme - How to manage business finances

The purpose of the skills programme: The purpose of the programme is to assist delegates understand the four basic financial statements (balance sheet, income statement, cash flow statement, and statement of owners equity) and be able to evaluate the businesss liquidity, efficiency, profitability, and risk using standard financial ratio analysis. Throughout the programme, delegates will practice thorough bookkeeping, making accurate projections, creating financial statements, and financial ratio analysis. Upon successfully completing the programme, delegates should be able to demonstrate knowledge, application, and comprehension of working capital management, capital budgeting, and financial reporting and analysis.

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Super Deal Maker - is a productivity web based platform to assist entrepreneurs and business managers in building sustainable businesses quickly and successfully by providing them with access to tools, training, and a business management activity planner to make sure they are doing the right things in the right order.

Entrepreneurship Master Programme is a high-level programme that combines virtual and in-person sessions to provide theoretical and practical training to entrepreneurs and business managers in areas such as business planning, marketing, strategy, operation, and finance.