What does accounting mean?
Accounting is the systematic practice of recording, organizing, and reporting financial information, most commonly for businesses, governments, and other organizations. At its core it involves tracking money as it enters and leaves an entity, then summarizing those records into standardized documents such as balance sheets, income statements, and cash-flow statements. Beyond simple record-keeping, accounting includes analysis and interpretation: practitioners assess profitability, ensure compliance with tax laws and regulations, and give stakeholders a trustworthy picture of financial health. The field has several recognized branches, including financial accounting for external reporting, management accounting for internal decision-making, auditing, and forensic accounting, which investigates fraud. The term also appears in a broader sense meaning a thorough explanation or reckoning, as when someone gives 'a full accounting' of their actions. Regarded as precise, methodical, and indispensable, accounting is often called the language of business because it allows organizations everywhere to communicate their performance in a common form.
The practice or profession of systematically recording, summarizing, analyzing, and reporting financial transactions.
"After earning her degree in accounting, she joined one of the large international audit firms."
Uncountable in this sense; the British equivalent 'accountancy' is preferred in the UK.
A detailed statement or report explaining financial dealings or, more broadly, a reckoning of actions taken.
"The board demanded a complete accounting of the project's expenditures."
Countable in this sense, typically preceded by adjectives such as 'full' or 'complete'.
Rarely used; 'accounting' is almost always treated as uncountable. A plural appears only occasionally in technical contexts referring to multiple separate sets of accounts.
"The auditors reviewed the quarterly accountings submitted by each subsidiary."
The word traces back to the Latin 'computare' — to reckon or calculate — making 'accounting' and the word 'count' close cousins across two millennia.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of accounting
Accounting derives from the Old French verb 'aconter', meaning to count or render an account, which in turn came from the Vulgar Latin 'computare', formed from Latin 'com-' (together) and 'putare' (to reckon or calculate). The noun 'accounting' developed in English from the gerund of 'account', with the professional sense of systematic financial record-keeping becoming established by the early modern period as commerce expanded. Its cognates include 'account', 'accountant', and 'reckon', all ultimately rooted in the same Latin idea of calculating or counting.
Related word forms
How accounting is actually used
In British English, 'accountancy' is the more common term for the profession as a field of study or work; American English strongly prefers 'accounting'. The word is uncountable in its main sense but can take an indefinite article when referring to a specific report ('a full accounting').
Easily confused with accounting
Accountancy is chiefly the British term for the profession or discipline itself, while accounting more often denotes the actual practice or process of keeping and reporting accounts.
Bookkeeping is the routine recording of financial transactions, whereas accounting encompasses bookkeeping plus analysis, interpretation, and reporting.