Episode 8 - Revenue Vs Capital

Published: July 24, 2018, midnight

Welcome to Episode # 8 of the Seeing Through the Numbers Podcast. Today I'm talking about money coming into your bank account. Money coming into your bank account is a good from your sales, or payments from clients or customers of their invoices these are good - even though 1/11th of this belongs to the ATO (we're talking GST). But when deposits come into your bank account are non-revenue related - eg from your personal funds to help pay the bills, loans from family and friends, bank or finance company loans. These aren't good deposits because at some point in the future you are going to have to pay them back. The key here is to understand the difference between revenue and capital receipts and which ones will impact your profit and loss and which ones just help your cash flow in the short term but will need to be paid back.