SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Conduct a financial analysis of a small business 
SAQA US ID UNIT STANDARD TITLE
13414  Conduct a financial analysis of a small business 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04  10 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard is aimed at people who would like to enter the micro finance sector or who already work in the sector and would like to improve their financial analysis skills.

It provides a general introduction to analysing, interpreting and acting upon micro-enterprise financial information.

The qualifying learner is capable of understanding financial statements and systems and using the information for analysis as well as for the evaluation of loan applications.

Once a person has completed this unit standard, he/she will be able to:
  • Collect the information needed to prepare financial statements.
  • Prepare financial statements.
  • Analyse and interpret micro-enterprise financial statements and documents.
  • Perform and interpret micro-enterprise working capital analysis. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    Accountancy at NQF Level 3 

    UNIT STANDARD RANGE 
  • Sources of information include but are not limited to an asset register, a description of a loan portfolio, detail on operational expenditure and detail on mobilisation and costs of financial resources.
  • Additional analysis refers to valuation of assets and calculation of depreciation of assets.
  • Financial statements include, but are not limited to, cash flow statements, balance sheets and income statements.
  • All categories of micro-enterprise credit up to R50 000 will be included.
  • The unit standard applies in both rural and urban contexts in South Africa.
  • The financial information will be that required for analysis within the micro-enterprise sector. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Collect the information needed to prepare financial statements. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. A checklist is drawn up of the information required to prepare financial statements according to generally accepted accounting principles (GAAP). 

    ASSESSMENT CRITERION 2 
    2. Sources of information are identified and explained according to requirements identified in checklist. 

    ASSESSMENT CRITERION 3 
    3. Additional information is collected based on the gaps between the information required and information acquired. 

    ASSESSMENT CRITERION 4 
    4. Additional analysis is presented in the format required by the organisation, where information gaps have been identified. 

    SPECIFIC OUTCOME 2 
    Prepare financial statements. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. A balance sheet for the Micro-Enterprise institution is produced according to generally accepted accounting principles. 

    ASSESSMENT CRITERION 2 
    2. Income and expenditure statements, for the Micro-Enterprise institution are compiled according to generally accepted accounting principles. 

    ASSESSMENT CRITERION 3 
    3. A cash flow statement for the Micro-Enterprise institution is drawn up according to generally accepted accounting principles. 

    ASSESSMENT CRITERION 4 
    4. A consistent approach is demonstrated; resulting in clear links being made between the financial statements in keeping with generally accepted accounting principles. 

    SPECIFIC OUTCOME 3 
    Analyse and interpret micro-enterprise financial statements and documents. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Information from an income statement and balance sheet is selected and applied to calculate financial ratios including liquidity, activity, profitability and solvency ratios. 

    ASSESSMENT CRITERION 2 
    2. The importance of each calculated ratio to the financial analysis is explained in terms of how it describes the financial status of the business. 

    ASSESSMENT CRITERION 3 
    3. A report is compiled which demonstrates an understanding of the implications of the calculated ratios. 

    SPECIFIC OUTCOME 4 
    Perform and interpret micro-enterprise working capital analysis. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The results of the calculated ratios and the financial analysis are used to compile budgets and reports as required by the organisation. 

    ASSESSMENT CRITERION 2 
    2. Appropriate investment decisions are made on the basis of the financial analysis. 

    ASSESSMENT CRITERION 3 
    3. The potential impact of the proposed investment decisions on the micro finance institution is explained in report format as required by the organisation. 

    ASSESSMENT CRITERION 4 
    4. A set of investment criteria derived from the strategic objectives of the micro finance institution is presented to the designated individual. 

    ASSESSMENT CRITERION 5 
    5. One investment decision is selected and this decision is motivated in a written report. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    1. An individual wishing to be assessed (including through RPL) against this unit standard may apply to an assessment agency, assessor or provider institution accredited by the relevant ETQA.
    2. Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.
    3. Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA.
    4. Moderation of assessment will be conducted by the relevant ETQA at its discretion. 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    The learner can:
  • Apply commonly used information gathering techniques.
  • Understand and use financial concepts and terminology.
  • Apply financial concepts.
  • Demonstrate the appropriate use of financial analyses in making accurate decisions about micro-credit provisioning. 


  • Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identify and solve problems using critical and creative thinking:
  • Use accountancy skills to evaluate information. 

  • UNIT STANDARD CCFO ORGANISING 
    Self-organisation and management:
  • Use structured methods for compiling financial statements and documents. 

  • UNIT STANDARD CCFO COLLECTING 
    Collect, organise and evaluate information:
  • Use Accountancy methods to analyse the information. 

  • UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively using visual, mathematical and language skills both verbally and in writing:
  • Apply accountancy and analytical abilities to interpret and present information. 

  • REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  23433   Further Education and Training Certificate: Micro Finance  Level 4  Level TBA: Pre-2009 was L4  Reregistered  2023-06-30  BANKSETA 
    Elective  50285   National Certificate: Professional Driving  Level 3  NQF Level 03  Reregistered  2023-06-30  TETA 
    Elective  58350   Further Education and Training Certificate: Perishable Produce Exportation  Level 4  NQF Level 04  Reregistered  2023-06-30  AgriSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. AAH Skills and Development 
    2. Algoa Bus Company 
    3. All-in-one Driving Academy 
    4. Andebe Training and Skills Development 
    5. Areka Logistics Solution 
    6. Barloworld Transport Solutions 
    7. Bolton Business College & Computer Studies 
    8. Buscor 
    9. Centre for Logistics Excellence (Pty) Ltd 
    10. DIONYSUS SKILLS DEVELOPMENT INITIATIVE PTY LTD 
    11. Eastcape Training Centre 
    12. Gerotek Test Facilities 
    13. Golden Arrow Bus Services 
    14. He and She Driver Training Centre 
    15. Ikaheng HR Services Pty Ltd 
    16. Inkqubela Consultants 
    17. Learncorp 
    18. Makwedeng Training 
    19. Nedbank Ltd 
    20. NOSA LOGISTICS PTY LTD 
    21. Pal Passenger Bus Services 
    22. Phephani Learnerships cc 
    23. PUTCO Limited 
    24. Safe and Eco Driving (Pty) Ltd 
    25. South African Transport Centre of Excellence 
    26. SPINA Consultancy cc Cape Town 
    27. THABO Training and Services 
    28. Thwala Training Services (Pty) Ltd 
    29. UKWAKHILE TRAINING 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.