Zero-proof bookkeeping

Zero-proof bookkeeping,

Definition of Zero-proof bookkeeping:

  1. Used in smaller businesses or for individual purposes, this method of keeping an eye on the books allows for the accounts to have a balance of zero at the end of the accounting period.

  2. Zero-proof bookkeeping is employed as part of a double-entry bookkeeping system, where credits (assets) and debits (liabilities) are kept track of simultaneously.

  3. Zero-proof bookkeeping is a manual bookkeeping procedure used in accounting 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. In this way, this practice is quite similar to keeping a balance sheet, which is a common financial statement issued by firms that balances assets with liabilities and shareholder's equity - such that subtracting the left side from the right side of the balance sheet results in a sum of zero.

Meaning of Zero-proof bookkeeping & Zero-proof bookkeeping Definition