why is owner's withdrawal recorded as a charge against cash out?

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G

Guest

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?
 
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.
 

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