Service Firm Accounts. Overview O What is a Service Firm? O Why do Service Firms keep accounts? O What type of accounts do Service Firms use?

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Presentation transcript:

Service Firm Accounts

Overview O What is a Service Firm? O Why do Service Firms keep accounts? O What type of accounts do Service Firms use?

What is a Service Firm? O Service Firms are businesses that provide their experience or skills in return for a fee O Unlike other firms, they do not produce a product O Service Firms provide approximately 70% of jobs in Ireland

Can you think of any examples of service firms?

Transport

Banking

Medical

Dental

I.T.

Insurance

Plumber/Electrician/Painter

Hairdresser

Why do Service Firms keep accounts? O They are required to keep accounts by the Revenue Commissioners O To find out if the business made a profit or a loss O To find out the value of the business O Accounts are needed if applying for a grant or a loan

What type of accounts do Service Firms use? O Analysed Cash Book – to record all cash received and paid by the business O Operating Statement – similar to an income and expenditure account O Income = debit side of analysed cash book O Expenditure = credit side of analysed cash book O Balance Sheet – statement of items owned by the business on a certain date, along with the corresponding finance

Review O What is a Service Firm? O Why do Service Firms keep accounts? O What type of accounts do Service Firms use?