From Confusion to Clarity: Making Sense of Your Income Statement

This episode of Solopreneur Survival Club breaks down everything you need to know about income statements—also called profit and loss statements. We’ll cover the essentials for understanding revenues, cost of goods sold, and expenses. By the end, you’ll know exactly what your numbers mean and why they don’t always match up with your bank account balance.

What You’ll Learn in This Video:
0:00 What is an income statement? & it's 3 main sections
1:01 How to classify your revenues
3:12 Understanding cost of goods sold (COGS) for services and products
4:25 Gross profit
4:48 Overhead expenses and common misconceptions
8:46 Net profit
9:42 Why your profit doesn’t match your bank account balance
11:50 What I look for when reviewing income statements
14:35 The benefits of checking your income statement regularly
17:35 Reach out to your friendly neighborhood accountant!

Why This Video is Important:
Income statements might not be the most exciting topic, but understanding them is crucial to running a successful business. We’ll simplify the complex terms and give you the confidence to take control of your finances. Watch to the end to learn practical tips for improving profitability and reducing tax liabilities.

Links & Resources Mentioned in This Episode:

My strategy for squireling away money ► Watch Here
My favorite business software ► Check it Out Here!

⭐️ Like & Subscribe
If you found value in this video, don’t forget to give it a thumbs up 👍 and subscribe to the Solopreneur Survival Club for more actionable tips on thriving in your business. Also, if you haven’t done so already, sign up for the newsletter—so you don’t miss out on any tips and tricks!

Solopreneur Survival Club: Everything You Need to Know About Reading an
Income Statement