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

Clare, too, receives frequent rhapsodic praise, but even accounting for the narrator’s grief-induced idealization, their relationship strikes me as too perfect.

From The Wall Street Journal • May 22, 2026

SpaceX is the space behemoth, accounting for more than half of the world’s orbital launches, and it is planning to raise a record amount of capital in a June IPO.

From Barron's • May 22, 2026

Best known for its TurboTax platform, Intuit has branched into accounting with QuickBooks, credit scoring through Credit Karma and email automation via Mailchimp.

From Los Angeles Times • May 22, 2026

That share is now effectively zero, at least by the company’s own accounting.

From MarketWatch • May 21, 2026

For example, chickpeas are widely grown by traditional farmers from the Mediterranean and Ethiopia east to India, with the latter country accounting for 80 percent of the world’s chickpea production today.

From "Guns, Germs, and Steel: The Fates of Human Societies" by Jared M. Diamond

Related Words

• bookkeeping
• computing