Zero-Proof Bookkeeping
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Definition of '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. |
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Investopedia explains 'Zero-Proof Bookkeeping'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. |
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