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

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 on all calculations and scenarios
• Annexure B- Full Management Accounts for 2025 tax year
• Annexure C- Full Management Accounts for 2026 tax year