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.

BREAKING DOWN '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.

RELATED TERMS
  1. Double Entry

    The fundamental concept underlying present-day bookkeeping and ...
  2. Blind Entry

    An accounting entry found in financial bookkeeping that is made ...
  3. Journal

    1. In accounting, a first recording of financial transactions ...
  4. Trial Balance

    A bookkeeping worksheet in which the balances of all ledgers ...
  5. Footings

    A final balance when adding the debits and credits on an accounting ...
  6. T-Account

    An informal term for a set of financial records that use double-entry ...
Related Articles
  1. Personal Finance

    Career Advice: Accounting Vs. Bookkeeping

    Learn the nuances that separate the similar careers of accounting and bookkeeping, and identify which is better for you based on your skills and career goals.
  2. Personal Finance

    Do I Need A Personal Accountant?

    You know you need to keep your personal finances better organized. Should you hire professional help, and if so what kind?
  3. Investing

    Explaining Double Entry Accounting

    Double entry is an accounting and bookkeeping term describing the method of entering transactions into the accounting records.
  4. Investing

    Financial History: The Evolution Of Accounting

    Follow accounting from its roots in ancient times to the profession we now depend on.
  5. Small Business

    How to Outsource Work: 2 Tips for Business Owners

    Small business owner can increase efficiency and profits by outsourcing routine functions such as bookkeeping and payroll.
  6. Investing

    Understanding the Accounting Cycle

    An accounting cycle consists of the traditional procedures performed to record business events and transactions in a company’s accounting records.
  7. Investing

    Best Record Keeping Software Products for Your Business

    Discover the importance of bookkeeping for your business and three of the best bookkeeping software options for your small business.
  8. Investing

    What is Accounting?

    Accounting is the recording of financial transactions of a business or organization. It also includes the process of summarizing, analyzing and reporting these transactions in financial statements.
RELATED FAQS
  1. Given a good bookkeeping system, would financial accounting be necessary?

    Bookkeeping and financial accounting may seem like they are new creations, but variations have been around for millennia. ... Read Answer >>
  2. How is a Limited Liability Company (LLC) taxed?

    Learn how to create grouping schedule codes and subcodes, how this process requires basic bookkeeping skills and why accurate ... Read Answer >>
  3. You are analyzing a small company's financials, and notice that the bookkeeper made ...

    The best answer is 2. 1 is tempting, but wrong, because an asset "sounds like" a debit but the depreciation expense here ... Read Answer >>
  4. What is double entry bookkeeping and how does it work in the general ledger?

    Learn about the double entry method of bookkeeping and how it works in the general ledger. Every accounting transaction has ... Read Answer >>
  5. How do I reconcile an account?

    Learn about the process of account reconciliation, including some of the ways that documented proof of financial activity ... Read Answer >>
  6. How is accrued revenue accounted for in bookkeeping?

    Understand how accrued revenue is accounted for on a company's financial statements. Learn through a specific example of ... Read Answer >>
Hot Definitions
  1. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  2. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  3. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  4. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  5. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  6. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
Trading Center