Sipho: ''alright, I think we are left with one thing: ''notes''. Madimetja: ''oh yep, notes to the financial statements. Notes explain the key figures of financial statements for example what is sales made out of and what do the assets of the business consist of and...

Madimetja: ''well, if equity  is decreasing year after  year it means the company is destroying value. Should the total liabilities exceed total assets it would mean the company is insolvent and according to the Companies Act insolvent companies are not...

Madimetja: ''secondly, the statement of changes in equity, with this one you will see how the equity of your business has changed  from one financial year to the other. Remember equity reflects the book value of your business and another way to determine this is...

Sipho: ''awsome, I am gonna start my daily cash  flow budget tomorrow, I need to set goals and hold myself accountable to achieving them so that I can grow my business''Madimetja: ''let me know should you be stuck''Empower yourself, grow your business!

Sipho: ''alright, I get you but how will a cashflow statement help me? Madimetja:''Great question, to manage your business on a day to day basis I would advise that you prepare daily cash flow projections. This will help with setting targets and then comparing this to...

Madimetja: ''Lets start with the cash flow statement, this statement reports on the cash inflows and outflows of the business for financial year. Simply put, the statement explains the change in your bank balance of the beginning of the year and that of the end of the...

Sipho: '' heita Madi, right tell me what is the purpose of the three statements you mentioned over the phone. Madimetja: ''Hello Sipho, great, I like your question. It goes to show that your financials are not a tickbox exercise to you"Empower yourself, grow your...

Madimetja: we can meet at 17:00 today, mm... , you are unlike my other clients, most entrepreneurs are not interested in their financials. You on the other hand are even preparing them yourself.  I guarantee you, your business will do well. Sipho:''I hope so, I...

Madimetja: "annual financial statements do not only consist of the income statement and balance sheet but there is the (1) cashflow statement, (2) statement of changes in equity (3) Notes to the financial statements. Sipho: '' yoh I need to attend the next Growth...

Sipho called Madimetja to find out whether he had a chance to look at his financials. Spho: 'Hello Madimetja, I prepared financials, did you see my email?' Madimetja:'oh yes I did, the financials look good however I see that you only prepared the Income statement and...