Which deposits are not income for a small business?

Loan Proceeds: Deposits from new borrowing: loan funding, SBA disbursements, merchant cash advances, and line-of-credit draws. Not revenue. Owner Contribution: Owner's personal money put into the business: capital injections and owner-funded deposits, often round amounts. Not revenue. Internal Transfer: Movement between the business's own accounts: transfers to or from its own checking or savings. Excluded from the P&L entirely. Owner Draw: Money the owner takes out for personal use: owner withdrawals, transfers to personal accounts, personal spending from the business account. Refunds Given: Money returned to customers: refunds, chargebacks, and returned sales. A withdrawal that reduces revenue, not an expense.

Other / General

Profit and loss statement for a small business

Whatever the trade, the shape is the same: money in that is genuinely sales, money out that keeps the doors open, and a handful of movements that look like both and are neither. The last group is where an owner-prepared P&L usually goes wrong.

Upload the statements your bank already sends you and we read every transaction, ask about the ones we cannot place, and build a Profit & Loss you can hand to whoever asked for it. Start without an account.

The categories a small business gets

These are provisioned for you on day one — the same rows the product sorts your transactions into, with the suppliers it looks for.

SalesMoney in: Primary business revenue: customer payments, card processor payouts (Stripe, Square, PayPal), and cash or check deposits from normal operations.
Refunds GivenMoney in: Money returned to customers: refunds, chargebacks, and returned sales. A withdrawal that reduces revenue, not an expense.
RentRunning the business: Rent or lease payments for the business premises, paid to a landlord, property manager, or leasing company.
UtilitiesRunning the business: Electricity, gas, water, sewer, and trash service bills (power companies, water districts, Waste Management, Republic Services).
Phone & InternetRunning the business: Phone, mobile, internet, and cable bills from carriers like Comcast, Spectrum, Verizon, AT&T, T-Mobile, Cox.
PayrollRunning the business: Wages and payroll-related withdrawals, including payroll providers like Gusto, ADP, Paychex, and payroll tax drafts.
InsuranceRunning the business: Business insurance premiums: general liability, property, workers' comp, commercial auto (State Farm, GEICO, Progressive, The Hartford).
Software & SubscriptionsRunning the business: Recurring software, SaaS, and web-service charges: Google Workspace, Microsoft, Adobe, Intuit/QuickBooks, GoDaddy, Zoom, Dropbox.
Merchant & Bank FeesRunning the business: Card processing and bank service fees: Stripe/Square/PayPal processing fees, merchant services, monthly service charges, wire and overdraft fees.
Office & General SuppliesRunning the business: Office and general operating supplies from stores like Staples, Office Depot, Amazon, or Home Depot when the purchase is not job materials or inventory.
Advertising & MarketingRunning the business: Marketing and advertising spend: Google Ads, Meta/Facebook, Yelp, Indeed job postings, print ads, signage, promotions.
Professional FeesRunning the business: Payments to accountants, attorneys, bookkeepers, consultants, and other outside professional service providers.
Fuel & VehicleRunning the business: Gas station and business-vehicle costs: Shell, Chevron, Exxon, Pilot, Love's, fleet fuel cards, plus parking and vehicle repairs.
Taxes & LicensesRunning the business: Tax and licensing payments: IRS, US Treasury, state franchise tax, department of revenue, business licenses, DMV registration fees.
Outside ServicesRunning the business: Contract labor and outside services: 1099 contractors, cleaning and janitorial companies, temp agencies, security, landscaping, laundry/linen services — work done by people or companies who are NOT on payroll and NOT professional advisors (those go to Professional Fees).
Meals & EntertainmentRunning the business: Business meals: client meals, working meals with staff, coffee shops and restaurants while conducting business. NOT food or beverage inventory bought for resale — that belongs in the industry's food/inventory purchase account.
TravelRunning the business: Out-of-town business travel: airlines, hotels, rental cars, trains, travel booking sites. Local vehicle costs belong in Fuel & Vehicle.
Repairs & MaintenanceRunning the business: Repairs and upkeep of the business premises and equipment: plumbers, electricians, HVAC service, handymen, appliance and equipment repair. Not improvements that add lasting value (large ones are assets).
Equipment RentalRunning the business: Renting or leasing machinery, equipment, or vehicles for business use (United Rentals, Sunbelt, forklift or copier leases). Premises rent belongs in Rent.
Employee BenefitsRunning the business: Employee benefit costs: group health, dental, and vision premiums for staff (Anthem, Kaiser, Guardian group plans), and other benefit programs.
Retirement Plan ContributionsRunning the business: Employer retirement plan payments: 401(k), SIMPLE, SEP contributions drafted by providers like Human Interest, Guideline, Fidelity, Empower.
Commissions & FeesRunning the business: Sales commissions and referral or finder's fees paid to people or companies who bring in business. Card-processing costs belong in Merchant & Bank Fees.
Credit Card PurchasesRunning the business: Payments to credit card issuers (Amex ePayment, Chase card autopay, Capital One card payment) counted as business spending. Card statements are not uploaded, so the payment stands in for the card's itemized purchases. Personal card paydowns belong in Owner Draw.
Miscellaneous ExpenseRunning the business: A legitimate business expense that fits no other category. Use only when no more specific account applies.

The deposits that are not income

This is where an owner-prepared P&L usually goes wrong. Money can land in the account without being a sale, and money can leave without being a cost — and a lender notices when it has been counted anyway.

Loan ProceedsMoney you owe: Deposits from new borrowing: loan funding, SBA disbursements, merchant cash advances, and line-of-credit draws. Not revenue.
Owner ContributionOwner's money: Owner's personal money put into the business: capital injections and owner-funded deposits, often round amounts. Not revenue.
Internal TransferNot on the P&L: Movement between the business's own accounts: transfers to or from its own checking or savings. Excluded from the P&L entirely.
Owner DrawOwner's money: Money the owner takes out for personal use: owner withdrawals, transfers to personal accounts, personal spending from the business account.
Refunds GivenMoney in: Money returned to customers: refunds, chargebacks, and returned sales. A withdrawal that reduces revenue, not an expense.

We ask about these in plain English rather than guessing — “was this $10,000 deposit sales, your own money, or a loan?” — and you see every answer before you pay.

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