How to Analyze an Income Statement for Clean-Ups [Bookkeeper Tips]

Get 30% off QuickBooks for 6 months when you sign up through my affiliate link: quickbooks.partnerlinks.io/uixlt4lvoist Cleaning up messy books? In this video, I’ll walk you through five real examples of income statements using QuickBooks’ sample company, Craig’s Design & Landscape Services. You’ll learn what red flags to look for, how to spot misclassifications, and how to make an income statement clean, accurate, and easy to understand. By the end, you’ll know exactly how to troubleshoot an income statement so it actually tells the right story. 👉 I’m a QuickBooks ProAdvisor — call, text, or email me if you need help with QuickBooks Online. 📲719-822-6868 📧 [email protected] Timestamps: 0:00 – Intro: Why reading an income statement matters for cleanups 0:49 – Example 1: Income accounts that don’t make sense 2:38 – Cost of Goods Sold COGS 5:23 -- Example 2: Net income is negative 6:09 – Example 3: Unapplied Cash Payment Income explained 6:36 – Example 4: Broad “Sales” accounts & uncategorized income 7:22 – Payroll red flags: Negative expenses & high payroll taxes 8:36 – Auto expenses — expense vs. asset classification 9:07 -- Need help?! Call or email me 9:29 – Example 5: Negatives in income, COGS, and expenses 10:10 – Inventory Shrinkage & fixing product COGS mapping 10:42 – Payables showing as expenses (and why that’s wrong) 11:26 – Unrealized gains & losses on the income statement 12:00 – Wrap-up: How to keep an income statement clean & readable