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.

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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

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accounting Cultural  

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

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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

After accounting for factors such as age, sex, and demographics, the analysis showed that glucosamine use was associated with a 25% greater likelihood that patients with MCI would later develop dementia.

From Science Daily • Jun. 10, 2026

“The gap between these two figures suggests IPO investors are, on the whole, expressing a healthy wariness toward newly public companies, with a handful of standout winners accounting for most of the gains,” said Rabe.

From MarketWatch • 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

Blood managed the accounting and worked as Woodhull’s secretary, often writing documents for her, because she had never learned elegant penmanship or proper punctuation.

From "Votes for Women!" by Winifred Conkling

Related Words

• bookkeeping
• computing