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

During sentencing, Mousley described how Nowak, an accounting student, was walking back to his university housing in Southampton after having a drink in the pub.

From The Wall Street Journal • Jun. 3, 2026

Under this structure, variations of which are also used in medicine and accounting, a law firm pays a fee to outsource its back-office functions and other nonlegal work to an MSO backed by private equity.

From The Wall Street Journal • Jun. 1, 2026

That was true last week as well, with mega-cap tech names like Micron, Microsoft, and Broadcom accounting for more than two-thirds of the S&P 500’s weekly gain.

From Barron's • Jun. 1, 2026

These relationships remained strong even after accounting for age and other health factors.

From Science Daily • Jun. 1, 2026

Dad really wants to quit his job and find a new accounting firm or maybe even start his own—he’s a CPA—but he can’t because we get our health insurance through his work.

From "A High Five for Glenn Burke" by Phil Bildner

Related Words

• bookkeeping
• computing