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

AI has sped up the need for accounting curriculum updates.

From The Wall Street Journal • May 18, 2026

Some programs used to evaluate their curricula on a three- or five-year cycle because foundational subjects like financial and cost accounting rarely changed.

From The Wall Street Journal • May 18, 2026

From 2021 through 2024, annual U.S. agricultural exports to China averaged roughly $31 billion, with soybeans accounting for about half.

From Barron's • May 18, 2026

Tesla sold 78,591 to Americans in the first quarter, up 23% from a year ago and accounting for 36% of all EV sales.

From Barron's • May 17, 2026

At first Tessie had given an honest accounting of her days.

From "Middlesex: A Novel" by Jeffrey Eugenides

Related Words

• bookkeeping
• computing