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Zero-Proof Bookkeeping

Categories: Accounting, Metrics

Zero-proof bookkeeping is a meticulous accounting method that keeps everything nice and tidy, so you don’t have to look for errors later. Since there’s always a balance of zero after each entry is subtracted, this makes it easy to see when errors pop up.

It’s not all that different from a balance sheet used by firms that use two columns and subtraction to get zero, making sure it’s all “balanced.”

Zero-proof bookkeeping is an exciting Part I to a two-part method called “double entry bookkeeping," which tracks credits and debits. Here's hoping the sequel is even better than the original.

Find other enlightening terms in Shmoop Finance Genius Bar(f)