45th Birthday
Recycles dryer sheets
I'm a pretty numbers-oriented person, and with the new year I have been spending time looking at income and expense to see how we are doing. I do an income statement and also a plan for the coming year.
Previously, I have included the principal portion of mortgage payments as an expense. It is pretty clear that this is really a balance sheet/investment issue and does not belong on an income statement. Any thoughts?
I have also included "capital" items like changes to the house (kitchen countertops for example). And also things like a new TV. In a business setting, the former would probably be capitalized and depreciated and the latter expensed. I'm not really interested in doing that for a personal income statement, and anyway I'm more concerned about the actual cash flow. I'm thinking I will just leave these items as an expense. Any thoughts about that?
I appreciate any comments.
Previously, I have included the principal portion of mortgage payments as an expense. It is pretty clear that this is really a balance sheet/investment issue and does not belong on an income statement. Any thoughts?
I have also included "capital" items like changes to the house (kitchen countertops for example). And also things like a new TV. In a business setting, the former would probably be capitalized and depreciated and the latter expensed. I'm not really interested in doing that for a personal income statement, and anyway I'm more concerned about the actual cash flow. I'm thinking I will just leave these items as an expense. Any thoughts about that?
I appreciate any comments.