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

If you have reason to be concerned, request an accounting of financial activity during the time your brother acted under power of attorney and/or pursue other paths through the probate court.

From MarketWatch • Apr. 25, 2026

A report released Wednesday by the American Farm Bureau Federation found that roughly $9.6 billion has already been distributed, with corn, wheat, and soybean producers accounting for 80% of payments.

From Salon • Apr. 25, 2026

Residential markets account for roughly half of Ferguson’s business, with commercial customers, including AI data centers, accounting for the other half.

From Barron's • Apr. 23, 2026

A former executive at Live Nation, the world’s largest live entertainment company, is suing the company, alleging that he was wrongfully terminated after he raised concerns about alleged financial misconduct and improper accounting practices.

From Los Angeles Times • Apr. 23, 2026

She replied, “Caleb down in accounting thinks you’re the grandson of a mob boss. And Mary Alice in the secretarial pool thinks you’re saving up to run for governor.”

From "The Parker Inheritance" by Varian Johnson

Related Words

• bookkeeping
• computing