Define: Accounting

UK Accounting Glossary

Definition: Accounting

Quick Summary of Accounting

The process of identifying, measuring and communicating financial information about an entity to permit informed judgements and decisions by users of the information.

What is the dictionary definition of Accounting?

Dictionary Definition

Accounting (ACCG) definition: A systematic way of recording and reporting financial transactions for a business or organisation.

  1. accounting A registry of pecuniary transactions; a written or printed statement of business dealings or debts and credits, and also of other things subjected to a reckoning or review
  2. banking A sum of money deposited at a bank and subject to withdrawal.
  3. A statement in general of reasons, causes, grounds, etc., explanatory of some event; a reason for an action to be done.


Full Definition of Accounting

Accounting is practice and body of knowledge primarily concerned with:

  • methods for recording transactions,
  • keeping financial records,
  • performing internal audits,
  • reporting and analysing financial information to the management
  • advising on taxation matters.

It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It reveals profit or loss for a given period, and the value and nature of a firm’s assets, liabilities and owners’ equity.

Accounting provides information on the:

  • resources available to a firm,
  • the means employed to finance those resources, and
  • the results achieved through their use.


Accounting FAQ's

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Accounting. Payroll & Accounting Heaven Ltd. November 21, 2019
Chicago Manual of Style (CMS):
Accounting. Payroll & Accounting Heaven Ltd. (accessed: November 21, 2019).
American Psychological Association (APA):
Accounting. Retrieved November 21, 2019, from website:

Definition Sources

Definitions for Accounting are sourced/syndicated from:

This glossary post was last updated: 23rd December 2018.