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

In late 2025, AI startups raised $73.1 billion in a single quarter, accounting for almost 58% of all global venture capital funding.

From MarketWatch • Apr. 21, 2026

The results include a 27 cents per share boost from acquisition accounting adjustments, the company said.

From The Wall Street Journal • Apr. 21, 2026

Masemola, as the police's accounting officer, has been accused of failing in his duties.

From BBC • Apr. 21, 2026

Cerebras disclosed material weaknesses in financial controls, and its CEO previously pleaded guilty to accounting control issues.

From Barron's • Apr. 20, 2026

Arabic numerals made possible the paper-based accounting of double-entry bookkeeping.

From "The Invention of Science" by David Wootton

Related Words

• bookkeeping
• computing