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

Fuel is the second-largest cost for airlines after labor, accounting for about 25% to 30% of total airline operating costs, according to the International Air Transport Association.

From MarketWatch • Apr. 21, 2026

In contrast, Thales’s defense business reported 75% organic growth in orders to 2.24 billion euros, accounting for the lion’s share of all bookings.

From The Wall Street Journal • Apr. 21, 2026

That interpretation is consistent with the 2023 genomic study, which focused on species delimitation in this pit viper group while accounting for gene flow.

From Science Daily • Apr. 21, 2026

Masemola, as the police's accounting officer, has been accused of failing in his duties.

From BBC • Apr. 21, 2026

By contrast, Lauritsen and his Caltech colleagues soberly devoted two full pages to a meticulous accounting of every step they had taken to validate the French findings on carbon and boron alone.

From "Big Science" by Michael Hiltzik

Related Words

• bookkeeping
• computing