diff --git a/cypress/integration/rounding.js b/cypress/integration/rounding.js
new file mode 100644
index 0000000000..647b32a6a5
--- /dev/null
+++ b/cypress/integration/rounding.js
@@ -0,0 +1,44 @@
+context("Rounding behaviour", () => {
+	before(() => {
+		cy.login();
+		cy.visit("/app/");
+	});
+
+	it("Rounds floats accurately", () => {
+		cy.window()
+			.its("flt")
+			.then((flt) => {
+				let rounding_method = "Rounding Half Away From Zero";
+
+				expect(flt("0.5", 0, null, rounding_method)).eq(1);
+				expect(flt("0.3", null, null, rounding_method)).eq(0.3);
+
+				expect(flt("1.5", 0, null, rounding_method)).eq(2);
+
+				// positive rounding to integers
+				expect(flt(0.4, 0, null, rounding_method)).eq(0);
+				expect(flt(0.5, 0, null, rounding_method)).eq(1);
+				expect(flt(1.455, 0, null, rounding_method)).eq(1);
+				expect(flt(1.5, 0, null, rounding_method)).eq(2);
+
+				// negative rounding to integers
+				expect(flt(-0.5, 0, null, rounding_method)).eq(-1);
+				expect(flt(-1.5, 0, null, rounding_method)).eq(-2);
+
+				// negative precision i.e. round to nearest 10th
+				expect(flt(123, -1, null, rounding_method)).eq(120);
+				expect(flt(125, -1, null, rounding_method)).eq(130);
+				expect(flt(134.45, -1, null, rounding_method)).eq(130);
+				expect(flt(135, -1, null, rounding_method)).eq(140);
+
+				//  positive multiple digit rounding
+				expect(flt(1.25, 1, null, rounding_method)).eq(1.3);
+				expect(flt(0.15, 1, null, rounding_method)).eq(0.2);
+				expect(flt(2.675, 2, null, rounding_method)).eq(2.68);
+
+				//  negative multiple digit rounding
+				expect(flt(-1.25, 1, null, rounding_method)).eq(-1.3);
+				expect(flt(-0.15, 1, null, rounding_method)).eq(-0.2);
+			});
+	});
+});
diff --git a/frappe/core/doctype/system_settings/system_settings.js b/frappe/core/doctype/system_settings/system_settings.js
index 1de4dd82e7..1d5ba7ddb0 100644
--- a/frappe/core/doctype/system_settings/system_settings.js
+++ b/frappe/core/doctype/system_settings/system_settings.js
@@ -39,4 +39,21 @@ frappe.ui.form.on("System Settings", {
 	first_day_of_the_week(frm) {
 		frm.re_setup_moment = true;
 	},
+
+	rounding_method: function (frm) {
+		if (frm.doc.rounding_method == frappe.boot.sysdefaults.rounding_method) return;
+		let msg = __(
+			"Changing rounding method on site with data can result in unexpected behaviour."
+		);
+		msg += "<br>";
+		msg += __("Do you still want to proceed?");
+
+		frappe.confirm(
+			msg,
+			() => {},
+			() => {
+				frm.set_value("rounding_method", frappe.boot.sysdefaults.rounding_method);
+			}
+		);
+	},
 });
diff --git a/frappe/core/doctype/system_settings/system_settings.json b/frappe/core/doctype/system_settings/system_settings.json
index ddafd0e9fd..2c9e92d943 100644
--- a/frappe/core/doctype/system_settings/system_settings.json
+++ b/frappe/core/doctype/system_settings/system_settings.json
@@ -17,10 +17,11 @@
   "date_format",
   "time_format",
   "number_format",
+  "first_day_of_the_week",
   "column_break_7",
   "float_precision",
   "currency_precision",
-  "first_day_of_the_week",
+  "rounding_method",
   "sec_backup_limit",
   "backup_limit",
   "encrypt_backup",
@@ -520,12 +521,19 @@
    "fieldname": "login_with_email_link_expiry",
    "fieldtype": "Int",
    "label": "Login with email link expiry (in minutes)"
+  },
+  {
+   "default": "Round Half Even",
+   "fieldname": "rounding_method",
+   "fieldtype": "Select",
+   "label": "Rounding Method",
+   "options": "Round Half Even\nRounding Half Away From Zero"
   }
  ],
  "icon": "fa fa-cog",
  "issingle": 1,
  "links": [],
- "modified": "2022-12-20 21:45:37.651668",
+ "modified": "2023-03-06 11:31:19.144956",
  "modified_by": "Administrator",
  "module": "Core",
  "name": "System Settings",
@@ -544,4 +552,4 @@
  "sort_order": "ASC",
  "states": [],
  "track_changes": 1
-}
\ No newline at end of file
+}
diff --git a/frappe/exceptions.py b/frappe/exceptions.py
index 20e858c543..26c323352d 100644
--- a/frappe/exceptions.py
+++ b/frappe/exceptions.py
@@ -273,6 +273,10 @@ class ExecutableNotFound(FileNotFoundError):
 	pass
 
 
+class InvalidRoundingMethod(FileNotFoundError):
+	pass
+
+
 class InvalidRemoteException(Exception):
 	pass
 
diff --git a/frappe/public/js/frappe/utils/number_format.js b/frappe/public/js/frappe/utils/number_format.js
index 63b0cbe451..2c457e75fe 100644
--- a/frappe/public/js/frappe/utils/number_format.js
+++ b/frappe/public/js/frappe/utils/number_format.js
@@ -5,7 +5,7 @@ import "./datatype";
 
 if (!window.frappe) window.frappe = {};
 
-function flt(v, decimals, number_format) {
+function flt(v, decimals, number_format, rounding_method) {
 	if (v == null || v == "") return 0;
 
 	if (!(typeof v === "number" || String(parseFloat(v)) == v)) {
@@ -30,7 +30,7 @@ function flt(v, decimals, number_format) {
 	}
 
 	v = parseFloat(v);
-	if (decimals != null) return _round(v, decimals);
+	if (decimals != null) return _round(v, decimals, rounding_method);
 	return v;
 }
 
@@ -173,16 +173,40 @@ function get_number_format_info(format) {
 	return info;
 }
 
-function _round(num, precision) {
-	var is_negative = num < 0 ? true : false;
-	var d = cint(precision);
-	var m = Math.pow(10, d);
-	var n = +(d ? Math.abs(num) * m : Math.abs(num)).toFixed(8); // Avoid rounding errors
-	var i = Math.floor(n),
-		f = n - i;
-	var r = !precision && f == 0.5 ? (i % 2 == 0 ? i : i + 1) : Math.round(n);
-	r = d ? r / m : r;
-	return is_negative ? -r : r;
+function _round(num, precision, rounding_method) {
+	rounding_method =
+		rounding_method || frappe.boot.sysdefaults.rounding_method || "Round Half Even";
+
+	let is_negative = num < 0 ? true : false;
+
+	if (rounding_method == "Round Half Even") {
+		var d = cint(precision);
+		var m = Math.pow(10, d);
+		var n = +(d ? Math.abs(num) * m : Math.abs(num)).toFixed(8); // Avoid rounding errors
+		var i = Math.floor(n),
+			f = n - i;
+		var r = !precision && f == 0.5 ? (i % 2 == 0 ? i : i + 1) : Math.round(n);
+		r = d ? r / m : r;
+		return is_negative ? -r : r;
+	} else if (rounding_method == "Rounding Half Away From Zero") {
+		if (num == 0) return 0.0;
+
+		let digits = cint(precision);
+		let multiplier = Math.pow(10, digits);
+
+		num = num * multiplier;
+
+		// For explanation of this method read python flt implementation notes.
+		let epsilon = 2.0 ** (Math.log2(Math.abs(num)) - 52.0);
+		if (is_negative) {
+			epsilon = -1 * epsilon;
+		}
+
+		num = Math.round(num + epsilon);
+		return num / multiplier;
+	} else {
+		throw new Error(`Unknown rounding method ${rounding_method}`);
+	}
 }
 
 function roundNumber(num, precision) {
diff --git a/frappe/tests/test_utils.py b/frappe/tests/test_utils.py
index d2d5cdafd7..ce13ee65cd 100644
--- a/frappe/tests/test_utils.py
+++ b/frappe/tests/test_utils.py
@@ -6,25 +6,28 @@ import json
 import os
 import sys
 from datetime import date, datetime, time, timedelta
-from decimal import Decimal
+from decimal import ROUND_HALF_UP, Decimal, localcontext
 from enum import Enum
 from io import StringIO
 from mimetypes import guess_type
 from unittest.mock import patch
 
 import pytz
+from hypothesis import given
+from hypothesis import strategies as st
 from PIL import Image
 
 import frappe
 from frappe.installer import parse_app_name
 from frappe.model.document import Document
-from frappe.tests.utils import FrappeTestCase
+from frappe.tests.utils import FrappeTestCase, change_settings
 from frappe.utils import (
 	ceil,
 	dict_to_str,
 	evaluate_filters,
 	execute_in_shell,
 	floor,
+	flt,
 	format_timedelta,
 	get_bench_path,
 	get_file_timestamp,
@@ -1001,3 +1004,78 @@ class TestTBSanitization(FrappeTestCase):
 			self.assertIn("********", traceback)
 			self.assertIn("password =", traceback)
 			self.assertIn("safe_value", traceback)
+
+
+class TestRounding(FrappeTestCase):
+	@change_settings("System Settings", {"rounding_method": "Rounding Half Away From Zero"})
+	def test_normal_rounding(self):
+		self.assertEqual(flt("what"), 0)
+
+		self.assertEqual(flt("0.5", 0), 1)
+		self.assertEqual(flt("0.3"), 0.3)
+
+		self.assertEqual(flt("1.5", 0), 2)
+
+		# positive rounding to integers
+		self.assertEqual(flt(0.4, 0), 0)
+		self.assertEqual(flt(0.5, 0), 1)
+		self.assertEqual(flt(1.455, 0), 1)
+		self.assertEqual(flt(1.5, 0), 2)
+
+		# negative rounding to integers
+		self.assertEqual(flt(-0.5, 0), -1)
+		self.assertEqual(flt(-1.5, 0), -2)
+
+		# negative precision i.e. round to nearest 10th
+		self.assertEqual(flt(123, -1), 120)
+		self.assertEqual(flt(125, -1), 130)
+		self.assertEqual(flt(134.45, -1), 130)
+		self.assertEqual(flt(135, -1), 140)
+
+		# positive multiple digit rounding
+		self.assertEqual(flt(1.25, 1), 1.3)
+		self.assertEqual(flt(0.15, 1), 0.2)
+
+		# negative multiple digit rounding
+		self.assertEqual(flt(-1.25, 1), -1.3)
+		self.assertEqual(flt(-0.15, 1), -0.2)
+
+	def test_normal_rounding_as_argument(self):
+		rounding_method = "Rounding Half Away From Zero"
+
+		self.assertEqual(flt("0.5", 0, rounding_method=rounding_method), 1)
+		self.assertEqual(flt("0.3", rounding_method=rounding_method), 0.3)
+
+		self.assertEqual(flt("1.5", 0, rounding_method=rounding_method), 2)
+
+		# positive rounding to integers
+		self.assertEqual(flt(0.4, 0, rounding_method=rounding_method), 0)
+		self.assertEqual(flt(0.5, 0, rounding_method=rounding_method), 1)
+		self.assertEqual(flt(1.455, 0, rounding_method=rounding_method), 1)
+		self.assertEqual(flt(1.5, 0, rounding_method=rounding_method), 2)
+
+		# negative rounding to integers
+		self.assertEqual(flt(-0.5, 0, rounding_method=rounding_method), -1)
+		self.assertEqual(flt(-1.5, 0, rounding_method=rounding_method), -2)
+
+		# negative precision i.e. round to nearest 10th
+		self.assertEqual(flt(123, -1, rounding_method=rounding_method), 120)
+		self.assertEqual(flt(125, -1, rounding_method=rounding_method), 130)
+		self.assertEqual(flt(134.45, -1, rounding_method=rounding_method), 130)
+		self.assertEqual(flt(135, -1, rounding_method=rounding_method), 140)
+
+		# positive multiple digit rounding
+		self.assertEqual(flt(1.25, 1, rounding_method=rounding_method), 1.3)
+		self.assertEqual(flt(0.15, 1, rounding_method=rounding_method), 0.2)
+		self.assertEqual(flt(2.675, 2, rounding_method=rounding_method), 2.68)
+
+		# negative multiple digit rounding
+		self.assertEqual(flt(-1.25, 1, rounding_method=rounding_method), -1.3)
+		self.assertEqual(flt(-0.15, 1, rounding_method=rounding_method), -0.2)
+
+	@change_settings("System Settings", {"rounding_method": "Rounding Half Away From Zero"})
+	@given(st.decimals(min_value=-1e8, max_value=1e8), st.integers(min_value=-2, max_value=4))
+	def test_normal_rounding_property(self, number, precision):
+		with localcontext() as ctx:
+			ctx.rounding = ROUND_HALF_UP
+			self.assertEqual(Decimal(str(flt(float(number), precision))), round(number, precision))
diff --git a/frappe/utils/data.py b/frappe/utils/data.py
index 92467b036b..eeae737144 100644
--- a/frappe/utils/data.py
+++ b/frappe/utils/data.py
@@ -920,7 +920,9 @@ def flt(s: NumericType | str, precision: int | None = None) -> float:
 	...
 
 
-def flt(s: NumericType | str, precision: int | None = None) -> float:
+def flt(
+	s: NumericType | str, precision: int | None = None, rounding_method: str | None = None
+) -> float:
 	"""Convert to float (ignoring commas in string)
 
 	:param s: Number in string or other numeric format.
@@ -946,8 +948,10 @@ def flt(s: NumericType | str, precision: int | None = None) -> float:
 	try:
 		num = float(s)
 		if precision is not None:
-			num = rounded(num, precision)
-	except Exception:
+			num = rounded(num, precision, rounding_method)
+	except Exception as e:
+		if isinstance(e, frappe.InvalidRoundingMethod):
+			raise
 		num = 0.0
 
 	return num
@@ -1046,12 +1050,28 @@ def sbool(x: str) -> bool | Any:
 		return x
 
 
-def rounded(num, precision=0):
-	"""round method for round halfs to nearest even algorithm aka banker's rounding - compatible with python3"""
+def rounded(num, precision=0, rounding_method=None):
+	"""Round according to method set in system setting, defaults to banker's rounding"""
 	precision = cint(precision)
-	multiplier = 10**precision
 
+	rounding_method = (
+		rounding_method or frappe.get_system_settings("rounding_method") or "Round Half Even"
+	)
+
+	if rounding_method == "Round Half Even":
+		return _round_half_even(num, precision)
+	elif rounding_method == "Rounding Half Away From Zero":
+		return _round_away_from_zero(num, precision)
+	else:
+		frappe.throw(
+			frappe._("Unknown Rounding Method: {}").format(rounding_method),
+			exc=frappe.InvalidRoundingMethod,
+		)
+
+
+def _round_half_even(num, precision):
 	# avoid rounding errors
+	multiplier = 10**precision
 	num = round(num * multiplier if precision else num, 8)
 
 	floor_num = math.floor(num)
@@ -1068,6 +1088,32 @@ def rounded(num, precision=0):
 	return (num / multiplier) if precision else num
 
 
+def _round_away_from_zero(num, precision):
+	if num == 0:
+		return 0.0
+
+	# Epsilon is small correctional value added to correctly round numbers which can't be
+	# represented in IEEE 754 representation.
+
+	# In simplified terms, the representation optimizes for absolute errors in representation
+	# so if a number is not representable it might be represented by a value ever so slighly
+	# smaller than the value itself. This becomes a problem when breaking ties for numbers
+	# ending with 5 when it's represented by a smaller number. By adding a very small value
+	# close to what's "least count" or smallest representable difference in the scale we force
+	# the number to be bigger than actual value, this increases representation error but
+	# removes rounding error.
+
+	# References:
+	# - https://docs.oracle.com/cd/E19957-01/806-3568/ncg_goldberg.html
+	# - https://docs.python.org/3/tutorial/floatingpoint.html#representation-error
+	# - https://docs.python.org/3/library/functions.html#round
+	# - easier to understand: https://www.youtube.com/watch?v=pQs_wx8eoQ8
+
+	epsilon = 2.0 ** (math.log(abs(num), 2) - 52.0)
+
+	return round(num + math.copysign(epsilon, num), precision)
+
+
 def remainder(numerator: NumericType, denominator: NumericType, precision: int = 2) -> NumericType:
 	precision = cint(precision)
 	multiplier = 10**precision
diff --git a/pyproject.toml b/pyproject.toml
index b0205edb22..837ea4624a 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -102,3 +102,4 @@ Faker = "~=13.12.1"
 pyngrok = "~=5.0.5"
 unittest-xml-reporting = "~=3.0.4"
 watchdog = "~=2.1.9"
+hypothesis = "~=6.68.2"