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 2013, the project was forecast to cost £50.1bn in 2011 prices, which is the equivalent of about £75bn in today's money, when accounting for inflation.

From BBC • May 19, 2026

Steyer said his background is completely different from the people who thought they would bring a business accounting method to state government, a belief he called “super juvenile.”

From Los Angeles Times • May 19, 2026

I have been asking them to provide accounting, but they are basically saying that was my mother’s business and they can’t disclose her last statement to me.

From MarketWatch • May 19, 2026

The automation of entry-level audit work, coupled with the loosening of CPA licensing laws, is upending traditional accounting training and forcing universities to reinvent how they train the next generation of professionals.

From The Wall Street Journal • May 18, 2026

But I always say there’s no accounting for taste.

From "Bunnicula" by Deborah Howe and James Howe

Related Words

• bookkeeping
• computing