A cost of sale is an expense precisely related to the income. Defined as: a cost (expense) that you incurred to make the sale. Eg: if you sell bread, you must buy the bread to sell it.
Accounting is the system that records financial transactions of an entity.
Yes. Sales, turnover, income and revenue are all synonyms. (Income will be used on this page, but you can replace it with any of these phrases)
No. Income is the total of all the invoices that you issued to clients / customers. Profit considers the expenses involved in producing your product / service.
Profit is the amount of money that remains after all the expenses are deducted from the income for a period. There are 2 types of profit:
This is always the case and it confuses many business owners. There are a few reasons for this but here are just two: Non-cash items: These are expenses that don’t pass through the bank account. An excellent example is depreciation. This is levied against assets owned by the business. This will decrease your profit but not your bank account. Outstanding money: This is money that is still outstanding from clients. Example: The invoices total is R 1 000 in the month. One client received an invoice for R 200. He still owes you at month end. Although the remaining monies were received, the bank account will be less because that customer owes you R 200.
Without this certificate and the number, you cannot claim the amount in your tax return. It is vital that you retain the certificate, so you can submit it as supporting documentation with your tax return. They will ask for it as there is a specific section in your tax return to enter all the information.