Why doesn't the total amount of my bank withdrawals in a particular month match the “Total Expenses” number from my Profit & Loss Statement?
Total bank withdrawals won't necessarily match total expenses in your P&L report (same thing for total bank deposits not matching total income). Here are some examples where a bank transaction wouldn't show up on your Profit & Loss report, and therefore is not considered a business expense:
- It was a transfer between bank accounts.
- It was a personal purchase.
- It was a fixed asset purchase, which shows up on your Balance Sheet.