Zero-Proof Bookkeeping

Zero-Proof Bookkeeping

A manual bookkeeping procedure in which posted entries are systematically subtracted from an ending balance to check for errors. In zero-proof bookkeeping, a balance of zero when all entries have been subtracted is proof that the accounting entries have been entered correctly.

This method may be used to reconcile accounting differences in situations where the number of entries or transactions is not overly large. A typical situation where zero-proof bookkeeping is used is by bank tellers to reconcile differences at the end of a day. Zero proof bookkeeping is not practical where large numbers of transactions are the norm and many of the figures are rounded.


Investment dictionary. . 2012.

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