If you’ve been using GoDaddy Bookkeeping for a while, you’re most likely aware that we use positive numbers to count both your Income and Expenses – that is, your Expense transactions are not displayed as a negative number, just because they represent a loss.
Rather, all normal transactions are displayed as positive numbers, and we crunch your profits and losses behind the scenes.
However, you may occasionally notice a transaction with a negative amount. Before you start editing all of your transactions with negative amounts, you’ll want to make sure they’re not refunds or returns.
When you purchase an item (an expense transaction) but then receive your money back, we call it a refund. Since you’re effectively reversing the original payment you made, we count this as a negative expense. Therefore, if you’ve recently received a refund, you may see Expense transactions with negative amounts.
Conversely, if you make a sale but then have to return the money from that sale to the customer, we call it a return, and count it as a negative income.
GoDaddy Bookkeeping is set up this way to avoid artificially inflating your income. Read more about the Returns category here.