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why is owner's withdrawal recorded as a charge against cash out?
The cashflow templates indicates Loan principal payment and owner's
withdrawal are treated as charges that reduce the total cash payout. I don't seem to understand the logic. Loan principal payment and any withdrawal by the owners are basically cashout flow. Why then is that both are reflected to reduce the total cash outflow from items such as rent, office expenses, taxes, payroll, etc? |
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#2
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why is owner's withdrawal recorded as a charge against cash out?
Are you sure you are in the cash account? Paying rent would increase an
expense account while paying on a loan would decrease a credit account. "ogsa2006" wrote: The cashflow templates indicates Loan principal payment and owner's withdrawal are treated as charges that reduce the total cash payout. I don't seem to understand the logic. Loan principal payment and any withdrawal by the owners are basically cashout flow. Why then is that both are reflected to reduce the total cash outflow from items such as rent, office expenses, taxes, payroll, etc? |
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