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:

  1. It was a transfer between bank accounts.
  2. It was a personal purchase.
  3. It was a fixed asset purchase, which shows up on your Balance Sheet.

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