service firm accounts. overview o what is a service firm? o why do service firms keep accounts? o...
Post on 30-Dec-2015
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Service Firm Accounts
OverviewO 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 businessO 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 accountO Income = debit side of analysed cash bookO Expenditure = credit side of analysed cash
bookO Balance Sheet – statement of items
owned by the business on a certain date, along with the corresponding finance
ReviewO 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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