Financial Analysis and Accounting

By the end, you can record transactions with double-entry bookkeeping, prepare a simple income statement and balance sheet, and calculate and explain key financial ratios.

Job-ready skillAbout 80 hours3 stagesFree

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Accounting is recording and reporting a business's money transactions, and financial analysis is using those reports to judge how healthy a business is and to support decisions. Every South African business, from spaza shops to listed companies, needs people who can keep accurate books and read financial statements.

Turn on JavaScript to track your progress. The lessons are:FoundationsUnderstand the accounting equation, debits and credits, and how transactions flow into the books.Task: Record 15 transactions for a small imaginary business (for example a car wash) as journal entries using debits and credits. Post them to T-accounts and prepare a trial balance in Google Sheets that balances. Explain what the accounting equation is and show that it still holds.Core skillsPrepare and read the three main financial statements: income statement, balance sheet (statement of financial position) and cash flow statement.Task: From your trial balance, prepare an income statement and a balance sheet. Then write a short note explaining why profit is not the same as cash, using one example from your business.Applied practiceAnalyse a real company's financial statements using ratios and explain what they mean.Task: Download the latest annual results of a JSE-listed company (free on its investor relations page). In a spreadsheet, calculate gross margin, net margin, current ratio, debt-to-equity and return on equity for two years. Write a one-page summary of whether the company got stronger or weaker and why.

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What competent looks like

Can record transactions correctly using debits and credits and balance a trial balance
Can prepare a basic income statement and balance sheet from a trial balance
Can explain the difference between profit and cash flow
Can calculate and interpret margin, liquidity, gearing and return ratios
Can summarise a company's financial health in plain language

The South African route

Entry-level bookkeeping and clerk roles can be reached with practical skills and a portfolio. Recognised South African and international routes include bookkeeping qualifications through the ICB, the SAIPA Professional Accountant (SA) designation, and the ACCA or CIMA qualifications for those who want to progress.

Free resources

Core Finance (accounting and financial statements)
Khan Academy
AccountingCoach free explanations and practice quizzes
AccountingCoach
ACCA Financial Accounting (FA) free lectures
OpenTuition

These links go to free courses and sites run by other organisations. We chose them in October 2026 but do not run them, so check costs, dates and entry requirements on their site. Broken link? Tell us.

Jobs it can lead to

Bookkeeper (junior)
Accounts clerk
Creditors or debtors clerk
Junior financial analyst
Payroll administrator (entry level)