accounting

American  

[uh-koun-ting] / əˈkaʊn tɪŋ /

noun

1. the theory and system of setting up, maintaining, and auditing the books of a firm; art of analyzing the financial position and operating results of a business house from a study of its sales, purchases, overhead, etc. (distinguished from bookkeeping).

2. a detailed report of the financial state or transactions of a person or entity.

   an accounting of the estate.

3. the rendering or submission of such a report.

---

accounting British  

/ əˈkaʊntɪŋ /

noun

1. 1. the skill or practice of maintaining and auditing accounts and preparing reports on the assets, liabilities, etc, of a business

   2. ( as modifier )

      an accounting period

      accounting entity

---

accounting Cultural  

1. The system of recording and auditing business transactions. (See audit.)

---

Etymology

Origin of accounting

First recorded in 1350–1400; Middle English; account + -ing ¹

Explanation

Accounting is the act of computing something, usually by dealing with numbers. If you were very good at math in high school, you might think about going into accounting. You can see the word count within accounting, which is one way to remember that the word has to do with keeping track of numbers — usually in relation to financial transactions. Balancing your checkbook is a form of accounting. Large firms often hire accountants to keep track of their earnings and spending. Accounting can also more generally mean explaining. Someone who decides to wear shorts to the prom is likely going to have some serious accounting to do!

Example Sentences

The company’s financials, which were restated because of “certain material accounting errors identified by management” in April, show it lost $3.6 million in 2025 on $67.6 million in revenue.

From Barron's • Jun. 9, 2026

Publishing exec Jenny is well off, but nowhere near as wealthy as Marissa, who owns an accounting firm.

From Los Angeles Times • Jun. 9, 2026

When the dust settled, the airline had added more than 28,000 domestic seats, and over 30,000 total when accounting for long-haul international flights.

From The Wall Street Journal • Jun. 8, 2026

At Joon Um’s tax and accounting firm, new clients are told to finish their paperwork by March 1, or his team may be too busy to make the April 15 deadline.

From MarketWatch • Jun. 8, 2026

The final form is a client questionnaire that asks me to give a full accounting of my time in the United States.

From "The Sun Is Also a Star" by Nicola Yoon

Related Words

• bookkeeping
• computing