Thanks for getting back to us, @pranab. I'm glad you're on the right track with the loan payments.
To clarify, the principal portion of the loan won't appear as an expense in the Profit and Loss statement. Instead, it reduces your loan liability on the Balance Sheet, representing a return of borrowed funds. Only the interest portion is recorded as an expense, reflecting the cost of borrowing. This recurring expense directly impacts your business's profitability.
In case you need to compare your income and expenses for different periods, check out this article for more guidance: Run a Profit and Loss Comparison Report in QuickBooks Online and Online Accountant.
If you have any more questions or if thereβs anything else I can help with, please donβt hesitate to get in touch. I'm here to assist. Have a productive day ahead, pranab!
