Zero-proof bookkeeping

What is Zero-proof bookkeeping?

Zero-evidence bookkeeping is an accounting process in which published entries are systematically subtracted from final stability to test for errors. A stability of 0 while all entries were subtracted is evidence that the accounting entries were entered correctly in 0-evidence bookkeeping.

Zero-proof bookkeeping is a manual accounting technique that involves removing posted entries from an ending balance to check for errors. A balance of zero after removing all inputs confirms that the accounting entries were entered correctly in zero-evidence bookkeeping. This method is similar to keeping a balance sheet, which is a common financial statement published by businesses that balances assets, liabilities, and shareholder equity where deducting the left and right side amounts of the balance sheet will result to zero.

Usage of Zero-proof Bookkeeping with Double-entry bookkeeping

In conjunction with a double-entry bookkeeping system, zero-proof bookkeeping tracks both credits (liabilities) and debits (assets) concurrently.

This method, when combined with a double-entry bookkeeping system, can be used to reconcile accounting discrepancies in situations where the number of entries or transactions is not excessive. To reconcile discrepancies at the end of the day, bank tellers frequently use zero-evidence bookkeeping. In environments where large numbers of transactions occur frequently and many figures are rounded, zero-evidence bookkeeping is impractical. As a result, small businesses or individuals are the most likely to use this method.