The capital component is a simple way to represent introducing or withdrawing funds to the business from the owner(s).
To represent selling shares and providing dividends to shareholders, use the Equity component instead.
Setting up a capital component
You first need to choose whether this component is for introducing or withdrawing capital. If you would like to do both at some point in your plan, add two capital components.
Introduce funds
Use this input to represent capital invested into the business.
By introducing capital to the business, you’ll receive cash and you’ll add to the share capital line on the balance sheet.
Some capital was introduced before the plan started
When introducing funds, you have one more option that you can toggle on. This option is for funds introduced before the plan. This is important to enter so that your balance sheet shows the value of these funds right from the start of your plan.
Turn this option on to set the value:
Withdraw funds
Use this input to represent capital drawn from the business.
By withdrawing capital from the business, you’ll reduce your cash and reduce the share capital on the balance sheet.
