Body & Soul2 mins ago
In Profit and Loss forecasts if I had bank loan repayments would I include this in the forecast?
4 Answers
In Profit and Loss forecasts if I had bank loan repayments would I include this in the forecast or would I leave it out?
Answers
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Bank Loan repayments themselves have absolutely nothing to do with a business's "profit" or "loss" and should NOT be included in the Profit and loss forecasts.
Any interest element of the repayment should be included though, but not the capital amount. The capital repayment of loans is a USE of profits, not a cost in arriving at them.
Bank Loan repayments themselves have absolutely nothing to do with a business's "profit" or "loss" and should NOT be included in the Profit and loss forecasts.
Any interest element of the repayment should be included though, but not the capital amount. The capital repayment of loans is a USE of profits, not a cost in arriving at them.
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