Hello there, @eadster. I understand the confusion you have about how loans impact your business and I'm here to ease that by sharing some information and key points for a better understanding of how it reflects on your reports in QuickBooks Online.

Loans can have various effects on your financial statements, and it's important to analyze them to get a clear picture of your business's financial health. 

Here are a few key points to consider:

• Gross income and net income: Gross income represents the total revenue generated by your business before deducting any expenses. Net income, on the other hand, is the amount left after deducting all expenses, including loan payments, from the gross income. In your case, the net income of $5k indicates that your business is still profitable, although the margin has decreased compared to previous periods.
• Owner's draw: The owner's draw is the amount of money you and your wife withdraw from the business for personal use. It is not considered an expense and does not affect the net income directly. However, it reduces the equity of the business, which can impact the overall financial health. You can check out this article to know more about handling an owner's draw: Set up and pay an owner's draw in QuickBooks Online.
• Loan payments: Loan payments, including the Shopify capital loan, are considered expenses and are deducted from the gross income to calculate the net income. In your case, the $28k/month loan payments are significant and can have a substantial impact on your profitability. For better loan management, browse through this article: Set up a loan in QuickBooks Online.
• Cash flow: It's important to differentiate between net income and cash flow. Net income represents the profitability of your business, while cash flow refers to the actual movement of cash in and out of your business. Loan payments can affect your cash flow, especially if they are higher than the net income. If your bank accounts are not decreasing at the expected rate, it could be due to factors such as delayed loan payments, other sources of income, or changes in your accounts receivable or accounts payable.

To gain a better understanding of your business's financial viability, it would be helpful to analyze your Statement of Cash Flows, Balance Sheet, and other financial reports in addition to the Profit and Loss report. These reports can provide insights into your business's overall financial health, liquidity, and ability to meet its financial obligations.  To help you run these financial reports, feel free to refer to this article: Run reports in QuickBooks Online.

If you're still concerned about your financial situation, it may be beneficial to consult with a financial advisor or accountant who can review your financial statements and provide personalized guidance based on your specific circumstances: Find a ProAdvisor. 

Additionally, here's a helpful article I've included to help you get the most out of your financial reports by highlighting specific data and showing only what's needed: Customize reports in QuickBooks Online.

It's our priority to ensure that your financial management in QuickBooks Online is seamless. If you have any other questions on this or need further assistance, please don't hesitate to leave a comment below. We're here to assist you in any way possible. Wishing your business abundance and success. Keep safe.